Strategic Planning
Strategic planning is as essential to leading a nonprofit organization competently as a map and compass are to navigating your way through uncharted wilderness. More so in fact. A magical mystery tour might be fun on a hike, but that approach would be totally inappropriate for leading a nonprofit organization.
There are five reasons why a nonprofit organization needs a strategic plan:
The IRS and the use of tax-free revenue: A nonprofit organization’s tax-free status is granted by the IRS based on the understanding that revenues will be spent in pursuit of a very specific mission. A plan ensures that this expectation will be met and provides compelling evidence of intent. This rationale for having a strategic plan should be particularly compelling to a Board of Directors given that they are legally responsible to ensure that funds are spent in this way.
Pushes the envelope on DEIJ: Intentional planning raises questions of fundamental importance such as What data are we using to base our decisions on? How do we know what our community needs? How is our organization reflective of the community we serve? These questions are fundamental to developing a strong organization and are therefore essential components of the strategic planning process.
Promotes teamwork and organizational alignment: When an organization has a strategic plan, it becomes possible for the Board and the Executive Director to define the Board’s role and the Executive Director’s role for the implementation phase. Role clarity leads to efficiency, team work, and higher productivity.
Strengthens revenue generation: Quite simply, it is easier to raise funds when an organization has clearly defined its work. Clearly formed goals strengthen grant requests, and evaluate progress.
Strengthens mission delivery/community impact: The ultimate purpose of a nonprofit organization is to deliver on its mission. A strategic plan increases the ability of the organization to deliver more to the community. This is the most important reason for having a plan. Not having a plan is akin to short-changing the very community that the organization is committed to serving.
Third-party facilitation of a strategic planning process provides objectivity, allows for equitable participation in the process, and removes implicit biases that could negatively impact the process. The level of expertise and experience of the third-party is also important.
TNSG’s approach to strategic planning is rooted in Appreciative Inquiry (AI). AI is a strengths-based approach to organizational development. It challenges people to identify the factors that have led to an organization's success rather than focusing on factors that cause failure. Re-read our first blog of the month - Appreciative Inquiry - for a great insight into the potency of this approach.
If you are considering a strategic planning process for your organization and want to build on your organization's strengths and successes, we recommend two actions:
Book a free consultation session with us. We’d be very happy to hear from you
Read our upcoming blogs which share more about our approach
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