Strategic Planning for Nonprofits

Leaders who prioritize strategic planning experience 10% higher annual revenue growth than those who do not. For resource-constrained nonprofits, a strong plan provides the clarity, discipline, and direction necessary to advance your mission efficiently and sustainably.

Strategic planning is an intentional opportunity to step back, evaluate what success looks like, and identify the time, talent, activities, and dollars required to achieve meaningful impact.

The Benefits of Nonprofit Strategic Planning

The strategic planning process is vital to achieving your mission, navigating challenges, and seizing opportunities.

Benefits include:

How to Implement Strategic Planning in Nonprofits

As beneficial as strategic planning is, it doesn’t come without barriers. Many organizations face difficulties because they:

• Do not understand the problems they’re trying to solve
• Are not fully aware of their organization’s capabilities
• Do not account for day-to-day, time-consuming initiatives
• Do not obtain adequate buy-in from key players

To set your nonprofit up for strategic planning success, begin with the following:

1. Establish a Planning Team

Your planning team should include board members, senior staff, and key stakeholders. This group will actively participate, share diverse perspectives, and serve as ongoing champions.

More than 50% of leaders say upskilling and reskilling investments would produce the biggest increase in productivity within their organizations.

Remember Your People. It's critical to acknowledge your people and their role in change, regardless of what initiative you undertake.

2. Define Mission, Vision, and Values

Clearly articulate your organization’s mission, vision, and core values.

• The vision outlines long-term goals.
• The mission defines the organization’s purpose and activities.
• The values guide the behavior and decision-making processes.

Nonprofits are often met with an abundance of noise — from stakeholder opinions to community needs. Defining your mission, vision, and values will give you a critical lens for prioritization and budget allocation. In fact, research shows that when budgetary decisions are aligned with strategic objectives, organizations can achieve 20% higher ROI.

3. Conduct An Organizational Analysis

Analyze your organization's strengths, weaknesses, opportunities, and threats. Areas to watch for include:

• Data to help drive better strategies. Research shows that organizations that prioritize strong data are 24% more likely to meet revenue targets; whereas 50% of organizations fall short of revenue targets because of unrealistic projections.
• Increased risk. Nearly 69% of donors worry their information is at risk when giving to a charity. That’s why it’s critical to identify weaknesses like outdated systems and lagging technology.
• New funding sources. 57% of organizations are prioritizing revenue stream expansion to keep ahead of future challenges. New funding sources, emerging community needs, or potential partnerships can help you strategically position yourself for future growth.
• Increased competition for funding. While it’s always important to prioritize new initiatives, strategic planning can also help uncover opportunities to better retain existing donors. In 2025, 95% of nonprofits prioritized donor retention, looking for ways to strengthen relationships and improve engagement.
• Digital strategy. It’s no secret that the world is more digital than ever before. Yet only 19% of organizations raised more than half their revenue online. Looking for ways to strategically expand digital efforts and utilize AI efficiencies is essential to consider as a strategic initiative.

4. Develop Action Plans

Establish Specific, Measurable, Achievable, Relevant, and Time-delineated (SMART) goals. These goals should include metrics that align with the organization’s mission and provide a clear roadmap for the future.

From there:

• Identify Actions: Determine what specific actions or changes need to happen.
• Assign Responsibility: Decide who will be responsible for carrying out these changes.
• Set Timelines: Establish when these changes will occur and how long they will take.
• Allocate Resources: Identify what resources, such as funding and staff, are required to implement these changes.
• Plan Communication: Specify who needs to be informed and what information they need to know.

5. Monitor and Evaluate Progress

Regularly review progress towards achieving your strategic initiatives using the performance metrics identified in the SMART goals.

To keep your board members actively involved, try linking your strategic initiatives to the board meeting agendas. Make a conscious effort to include a brief discussion about the nonprofit’s strategic direction in each meeting.

Common Strategic Planning Mistakes

Avoiding common pitfalls strengthens the long-term value of the plan:

• Creating a plan without clear metrics
• Prioritizing too many competing initiatives
• Neglecting stakeholder involvement
• Failing to align the budget with the plan
• Treating the plan as static rather than adaptive
• Underestimating the need for digital and AI transformation

A Clear Next Step: Understand Your Strategic Crossroads

Before moving deeper into long-term planning, take a moment to assess where your nonprofit stands today. Many organizations face pivotal decision points — whether to grow, restructure, shift programs, strengthen operations, or diversify funding. Understanding your “strategic crossroads” ensures your next move is intentional and fully aligned with your mission.

Ready to take the next step? At Eide Bailly, we equip nonprofits with the insights, tools, and guidance needed to turn strategy into meaningful, measurable results.