Strategic plans for businesses are critical if they want to grow. Likewise for Not-for-Profit (NFP) organizations, however there are some differences. Businesses have a profit motive, while most NFPs are mission- and service-oriented. Here is a template for the start of a strategic plan for an NFP.
- Reaffirm the organization’s mission
- Identify the community that is being or will be served
- Determine if the community can be expanded
- Identify community needs and how they are not at present being met
- Identify how the NFP can fill the needs
- Provide a narrative of how the NFP will add the services, reach potential users and deliver the services
- If the NFP has a clearly defined base, identify ways to reach those not using or benefiting from the organization and also ways to determine if they would avail themselves of the organization’s proposed additional services
- A summary memorandum should be prepared at this point articulating the raison d’être for the entire project. If one was already prepared, review it to determine if it is still on target or change it accordingly
- Assess the resources and capabilities of the organization and its ability to perform the services
- Determine an operational structure that would consist of the NFP board of directors and executive officers, paid staff, independent contractors and volunteers, especially considering the availability and desire of volunteers to assist on the project
- Someone needs to be put in charge of the project. If possible, prepare an organizational chart
- Determine if the present facilities and resources are suitable or adequate
- Determine the extent technology is necessary and its availability
- Prepare a 3 to 5 year detailed budget of all costs and cash expenditures with benchmarked goals for each year
- If there will be revenues or fees for services, include that in the budget
- Perform a risk analysis of internal and external forces that could thwart the project; determine the need for insurance
- Consider financial data for organizations with similar services which can be accessed on websites such as Charity Navigator and GuideStar (charitynavigator.org, guidestar.org)
- Assess how donors and also future generations will view the NFP’s plan due to Sustainability, CSR (Corporate Social Responsibility), and ESG (Environmental/Social/Governance) concerns that are fast rising issues with donors
- Assemble a board of advisors or sponsors, including local officials and/or honorary board members
- Prepare a listing of sources of funds which would include grants, government funding, foundations, large benefactors, special fundraising, reasonably expected contributions, corporate sponsorships and possible sources of loans and joining in with other NFP organizations
- Prepare a timeline of fund solicitations and initial anchor contributors
- Plan the fundraising campaigns, including branding, logos, co-sponsorship opportunities, marketing, social media and publicity
- Determine a Plan B for a fallback if some, but not most, of the funds are raised
- Consider how present activities would be continued and/or affected by this project
- Consider the ongoing viability of the organization if the project fails
- Prepare an executive summary of the plan that stakeholders would be able to quickly grasp, understand and relate to the project or undertaking
- Get started!
The purpose of a strategic plan is to establish goals and a way to accomplish them. In some respects, a strategic plan is no different than a business plan except that it is usually for a specific project or to accomplish a specific goal.
We have a simple rule that should be followed. If you cannot clearly describe what you want to accomplish and make it come out on paper in the quiet of your office, how can it be successful when you proceed with it?
Work out every possible detail and alternative and everything that could go wrong, and when you are confident that the project will succeed, get started!
This template was prepared with the assistance of Matthew Keadle, CPA, a NFP specialist in our Bethesda, MD office and he can be reached at [email protected].
Good luck.
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