Strategic Planning Evolution
Strategic planning for nonprofits is undergoing subtle but clear changes. These may be more evolutionary than revolutionary but if it’s been several years since your organization has developed a strategic plan, expect your next plan and planning process to look different.
“Clients want flexibility in the process, emphasizing some phases over others and using the process to reconnect and build consensus for the organization,” notes Capacity Partners Partner Consultant Margo Reid. “One third of our 1.5 million nonprofits failed during the pandemic. Clients continue to look for a dynamic strategic planning model and process that emphasizes sustainability and accountability.”
Partner Consultant Steve Longley observes, “Nonprofits that
have weathered the COVID crisis and are now looking at engaging stakeholders for longer-term impact have decided – strategically – to make diversification of revenue a top priority. This takes a new look at a broad range of sources, not all of which will fit, but upon which a dramatic jump in funding can be developed.”
Consider these emerging concepts:
- Increased focus on impact measurement and outcomes (not outputs): Nonprofits are emphasizing the measurement and demonstration of their impact through clear and measurable outcomes, enabling data-driven decision-making and effective communication about benchmarks and success. These also generate helpful data points for reporting back to funders.
- Building flexibility into the plan: Some nonprofits are moving away from rigid, long-term plans, embracing shorter-term strategies that provide room to react and respond to changing circumstances and emerging opportunities and priorities. This can include using scenario planning — considering multiple future scenarios and developing strategies to be prepared to address each. This helps organizations become more resilient and responsive to changing circumstances.
- More expansive definition of stakeholders included in the planning process: Strategic planning now frequently involves greater stakeholder engagement and a broader participatory approach. While this is not a new concept, the breadth and intentionality of stakeholder engagement have grown. Nonprofits increasingly are recognizing that effective strategic planning requires active involvement from a wider range of individuals and groups to make informed decisions, create meaningful impact, and build stronger relationships with their stakeholders. This collaborative approach helps to solidify buy-in and ownership, while incorporating more diverse perspectives and generating new ideas.
- Pursuit of sustainability and diversified funding sources: There is intensified recognition of unpredictability with governmental funding sources as the shaky economy continues to stir the revenue pot. In a difficult environment, nonprofits are committing to baking financial sustainability into their strategic plans by pursuing diversified funding sources. In terms of committing to sustainability, nonprofits aren’t focusing solely on money, although that is essential. Sustainability also requires that other resources are abundant and productive – high staff retention and successful program delivery as measured by metrics, just to name a few.
- Incorporation of technology and innovation tools: Strategic planning for nonprofits is taking into account rapid advancements in technology and the opportunities they present for efficiency and growth in an array of realms, including communications, fundraising, service delivery, and overall operations. While nonprofits should proceed with some caution, the tremendous potential of AI is opening up a whole new toolkit for operations across the board, especially for small organizations. Strategic plans should take into account opportunities for efficiencies, not just through AI but through investment in CRM tools and systems that, at a minimum, talk to each other.
- Increased focus and accountability on Diversity, Equity, and Inclusion (DEI): A sense of urgency around DEI and social justice issues has had a broad impact on nonprofit management and service delivery. In the strategic planning context, nonprofits are seeking more diverse perspectives, voices, and experiences to ensure that their strategies are inclusive and can address systemic disparities. Strategic plans are establishing metrics and benchmarks to measure progress toward achieving DEI goals. Regular evaluation and reporting on DEI indicators help organizations hold themselves accountable, internally and externally.
- Consideration of pandemic lessons. For direct service organizations, for example, a post-pandemic consideration is whether and how to continue providing services virtually. The pandemic showed it was possible. Now nonprofits have to decide the right balance of in-person and virtual services to maximize cost-effectiveness and program efficacy.
Margo Reid Earns DEI Certification
Congratulations to Partner Consultant Margo Reid. She has earned a certification 
in Diversity, Equity and Inclusion in the Workplace from University of South Florida's Muma College of Business.
Grants Can Transform Nonprofits and Leverage Impact
For small and medium organizations, investing in grant writing can yield crucial resources that build capacity. Following the right strategy is the key to winning grant awards. “It’s helpful for nonprofits to really think about their strengths and look for funding opportunities that align with that,” says CP Consultant Kristen Engebretsen.
CP Consultant Barbara Wille has achieved grant success for small organizations. She advises, “Focus on your key competencies, and seek those funders interested – specifically – in what you do.” She notes that most funders are inundated with requests and must make hard choices. “The closer you can align your mission and programs with their specific guidelines and interests, the better chance you have of getting support.”
Here are more strategies:
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- Identify the right funding sources to ensure mission alignment. But don’t be afraid to stretch if you have a strong case. See Communities in Schools’ successful pursuit of a health-oriented grant HERE.
- Highlight unique aspects of your organization and why it stands out. If you are a smaller nonprofit, look for funders who prioritize supporting organizations with more limited resources and demonstrate how you are doing more with less.
- Develop a compelling case for support that includes specific data points about your impact on the community. But be sure to include a story or two that also communicate your impact.
- Highlight collaboration and partnerships. This can demonstrate that you are part of a bigger movement working towards common goals. It also can help elevate your visibility while showing your organization “plays well with others.”
- Take the time (and it can take a while) to build relationships with funders to introduce your organization and its work, including by attending events.
- Evaluate and adjust. Regularly reassess your grant-seeking process and adjust based on what has worked and what has not.
- Consider contracting for outside help with grant writing. If your organization is small, working with a grant writer can be a valuable investment to help you build core capacity without diverting your focus from delivering on programming and services commitments.
For small and medium-sized organizations seeking to leverage their impact, investing in grant writing help can lead to strength and growth. “We want to help you grow so you outgrow us,” Wille says.
Learn more from these grant success stories:
Communities in Schools
American Muslim Senior Society
Other Resources:
Learn more about targeting the right grants for your nonprofit. The Stanford Social Innovation Review published a helpful article about funding sources for different types of nonprofits. Read 10 Nonprofit Funding Models.
Success Story: American Muslim Senior Society
Capacity Partners client the American Muslim Senior Society (AMSS) has been building its capacity and impact by winning significant grant support, with assistance from CP Partner Consultant Barbara Wille.
AMSS’ mission is to empower the diverse seniors and caregivers in Montgomery County, MD, by giving them access to culturally sensitive tools and resources to improve their quality of life and the opportunity to live with dignity. The organization is quite small. With just three staff members, AMSS is relying on grants to expand its reach and programming.
One of the keys to AMSS’ grant success is recognizing that its mission aligns closely with Montgomery County’s strategic goals and commitment to encouraging multicultural approaches to address health equity issues, creating new opportunities for support.
Another key has been recognizing its limited staff capabilities, pointing to the need to contract for grant research and writing services, rather than adding to core staff workload.
The results speak for themselves. The organization is punching above its weight in terms of outcomes and impact, said Wille, thanks to a process that works. Working with an experienced grant writer who can ask the right questions and synthesize the information needed to win grants frees up staff to focus and execute on core programs. "It's a very effective process.”
Through this collaboration, AMSS is winning both "tiny organization" grants and "big organization" grants that support a vital mission and expanding programming, she said.
This includes funding to address senior food insecurity, which was an intense need during the pandemic and unfortunately remains an issue today. The organization serves 500 meals a week thanks to gifts from Montgomery County as well as private foundations. Another key part of AMSS’s mission is expanding culturally competent delivery of caregiving for seniors in Montgomery County, especially for those who are low income.
Grant wins include:
- An award of $80,000 to feed Afghan refugees in Montgomery County and offer wraparound services to the senior refugees among them. The grantor is Montgomery County’s Asian American Health Initiative, in partnership with the Primary Care Coalition, a nonprofit that seeks to improve the health of vulnerable individuals and families by building partnerships and strengthening systems.
- A $50,000 grant from the Greater Washington Community Foundation’s Food for Montgomery Fund to purchase a delivery vehicle and help pay for a food storage and packaging space for food.
- A major grant from WorkSource Montgomery, a County-supported program that links local and regional economic development and workforce efforts, with the support of the Primary Care Coalition and Nexus Montgomery, a consortium of hospitals that partners with community organizations on innovative projects to reduce hospital visits. This award is providing scholarships to expand the pool of culturally diverse students seeking their Certified Nurse Assistant (CNA) credential.
- A Carl Freeman FACES (Freeman Assists Communities with Extra Support) grant, which prioritizes smaller nonprofits, and a generous award from the William S. Abell Foundation, both for AMSS’ work to feed more people in difficult times.
Thanks to these grants and others supporting AMSS initiatives, "they are doing amazing things” with a tiny staff, Wille said.
Success Story: Communities In Schools
The mission of Communities in Schools (CIS) of the Nation’s Capital is to surround District of Columbia students with a community of support, empowering them to stay in school and achieve in life. The organization places dedicated staff members inside partner schools to identify students at risk of dropping out.
CIS was seeking to diversify its funding sources and needed more resources to cope with cutbacks by the District of Columbia Public School (DCPS) system and recover from pandemic challenges. CIS worked with CP Consultant Kristen Engebretsen to pursue a Healthy Equity grant opportunity from the Greater Washington Community Foundation’s historic Health Equity Fund. This high-visibility $95 million fund was created to improve the health outcomes and health equity of DC residents. The award will help the organization realign and transform service delivery.
While CIS’ work may not seem particularly centered on health, it made sense to pursue the grant because there was clear alignment in objectives and impact of the nonprofit’s work with young people, especially factoring in equity issues.
“CIS’ goals are aligned around the idea of improving social determinants of health (SDOH) – meaning education, health care access, food access, and the social and community context that surrounds our students, schools, and families,” Engebretsen said.
“By improving health outcomes, students can increase their attendance at school, and by improving education outcomes, students can increase their socio-economic status,” she noted. It is about knocking down barriers to success, improving access to health care, food, and affordable housing.
The Health Equity grant will enable CIS to establish partnerships with new schools and rebuild programs after the pandemic. The grant also supports CIS’ strategy to broaden sources of funding after being highly reliant on government funding.
“This large foundation grant is a concrete step towards adding in fresh resources,” Engebretsen said.
Asking the Right Questions: Are You Ready for Strategic Planning?
The start of a new year is a great time to reflect on your organization’s past performance and ponder its future direction, especially if you and your board are contemplating a new strategic plan, notes Capacity Partners President and Founder Mary Robinson.
“The needs of different sized nonprofits may vary. But when it comes to strategic planning, there are fundamental approaches to getting to a strong roadmap for the future no matter how big or small you are.” She adds, “Even with the agility required in today’s post-pandemic climate, the basics still matter.”
Here’s a helpful checklist. Have your key stakeholders – board, staff, and volunteers – answer these crucial questions:
1. Is your organization in a state of flux?
Whether facing external forces such as the pandemic or challenging internal issues, some organizations are not ready to embark on three-year planning. In this case, consider either waiting to address the issue before diving in, or try a dynamic planning model that uses a series of short planning cycles so pending issues can be addressed in a timely manner.
2. Is your board leadership stable?
If there is transition in leadership, it is wise to wait until those officers settle in and are comfortable in their new roles.
3. Is the executive director/CEO planning to stay on for several years?
While an organization can complete strategic planning without a top leader, it is best to have on board the person who will lead the execution of the plan, which is nearly always the executive director. An exception would be if the strategic planning scope includes defining what kind of new leader the organization needs.
4. Do the board and staff have time to engage meaningfully?
Meaningful strategic planning requires a time commitment of at least a half day per month for three to six months. The chair of the strategic planning committee and the organizational leader must dedicate even more time. Many small nonprofits hope to do the impossible – knock out a strategic plan in a single half-day session. That is generally neither wise nor useful.
5. Do you have someone on your board who is willing to make the commitment to chair the strategic planning committee?
It is too much to expect board chair to lead this process while handling their other responsibilities.
6. Do you want a board- or staff-driven process, or some combination of the two?
Very small nonprofits tend to opt for a board-driven strategic planning process while large organizations with staff members who bring special expertise are often staff-driven. Either way, the board still owns the responsibility for setting the strategic direction. This includes foundational elements like developing your mission/vision and values as well as establishing the strategic direction and goals. Staff can help tremendously with analyzing the current situation and creating strategy and implementation plans.
7. What kind of consultant do you want?
Do you need a partner who will guide you through the entire process, or a more focused facilitator, with your team doing most of the work? Make sure your organizational style and expectations line up with your consultant’s.
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If you would like help assessing whether your organization is ready for a strategic plan, or if you’re ready to start the planning process, call Capacity Partners at 240-462-5151. Our team of experts can help you decide if you are ready to proceed and discuss next steps with you.
The Ties That Bind: Strong Stewardship
A plunge in small donor giving is worrying nonprofit organizations (see this recent article). While COVID giving was fairly robust, the economic impact of a near-recession seems to be causing a measurable drag on small donor donations. Are you concerned about the giving of your small donors this season?
There are many strategies to attract and retain these donors, such as offering a “set it and forget it” monthly donation option. But while small donor support is important, ensuring strong donor relationships overall will strengthen the financial health of your organization. The time is always right to beef up stewardship efforts for donors, with some tailoring based on whether they are large or small.
It doesn’t necessarily require grand gestures. Success is about making your supporters feel valued and acknowledged so they keep giving.
Here are some ideas from the Capacity Partners consultant team.
For donors, both small and large:
Create low-cost, high-engagement events – tours of programs or “open house” visits (depending on the nature of your mission or service delivery)- Hold a town hall as a state-of-the-organization/get to know us (zoom or in person) session; share compelling stories and provide lots of time for questions
- Initiate a handwritten thank you note/phone call campaign
- Send out a thank you mailing with a sticker or other low-cost promo/swag
- Send out short and sweet regular update emails/newsletters. Feature a donor thank you component (perhaps once a year, list all small donors)
Maintaining a personal connection — and not just when a donation shows up – can make a huge difference. It can be low-budget while still making a positive impact. Be in touch all the time.
Have your board reach out to donors around holidays, with messaging that connects to the day or season (gratitude at Thanksgiving; around Valentine’s Day, send cards with related sentiments, such as “You are the heart of our organization”).
Send fun musical ecards for special occasions.
Touch base with donors periodically and consistently for no particular reason and don’t ask for anything; record good notes about their relatives, interests, and pets so that your future conversations can sincerely focus on them.
Be a connector – a resource who links people with common interests or needs – because you’ve gotten to know someone so well. Use your connections to share with other people. People appreciate it.
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For many nonprofits, in the end a significant percent of total giving comes from large donors. So be sure to keep them at the top of your priority list. Here are some tactics:
Create a newsletter for “insiders” that provides insights from your leader, a special story about the impact donors have made on an individual client, or shares organization good news such as special recognition or a new partnership, that will be shared with a more general audience later.- Schedule coffee visits with your top donors. Ask them if they feel comfortable with an in-person meeting or schedule a virtual coffee. The purpose is to learn why they give, which could be turned into an on-line campaign (see #4) or a profile piece in the newsletter.
- Single out long-term donors (designating them as Champions/Advocates or some other named distinction) at your next event with an inexpensive pin and recognition from the stage. Be sure to let this group know in advance they will be recognized.
- Create an on-line campaign to profile donors weekly or twice monthly. Have a quick interview on why they support the organization (and consider short videos as an option).
Nonprofits that don’t have a Development Director 
sometimes think that a donor interaction is speaking with a donor at a program or seeing someone at a program and waving to them across a room. Yes, you should note in your database all donor (and nondonor) participation in your programs.
But more importantly, seek out regular attendees and those you suspect may have special interest in your work for more personal attention when you chat about their interests in your work and what’s on tap going forward. These are the interactions that lead to larger gifts.
Reevaluate your year-end campaign and get the details right
As we swing into year-end campaign season, be sure not to stick with "same-old same-old."
Capacity Partners engineered a hugely successful end-of-year campaign for a food pantry in the Dc area several years ago by restructuring their approach and attending to important details. The result was double what the organization had raised the prior year.
Here are some keys:
Segment your donor list. Use tools like wealth screening, giving history, and personal knowledge to structure your approach. For this campaign, the categories were:
- Visionary, meaning major donors ($1,000+), who were asked to make a larger contribution;
- Monthly Ask, donors who gave more than once annually but were unpredictable, who were asked to become monthly contributors;
- Additional Gift, donors who already made an annual contribution and were asked to make an additional gift; and
- Lapsed donors, who had not given in more than a year and were asked t once again support the organization.
Tailor your communications and try to keep it personal so you stand out in a crowd. The organization sent a different letter for each segment. The executive director hand-signed each one. The letters were hand-stamped with first-class postage.
Don't be afraid to increase the frequency of your solicitations. People are busy especially during the holidays. Getting a reminder about your organization's campaign may be just the nudge they need to commit. Send at least three communications between the week before Thanksgiving and New Year's Eve.
Use multiple platforms (email, social media, website content, mailed hard-copy letter) to advance your campaign, but be sure they all deploy a consistent look that emphasizes the theme and message at the heart of your year-end campaign. For example, the successful campaign designed by Capacity Partners was built around brief, emotional testimonials.
Remember that you've got lots of suupporters out there who care about what you do. Don't let the woes of the economy or the late date slow you down. Get going! You are needed.
Crafting Intimate, Mission-Driven Events
Some organizations are consciously moving away from the classic big gala fundraising event, embracing smaller events to expand supporters’ understanding of their core mission. While organizations still raise funds, these events have a more important goal: building a deeper connection with current donors through experiences that are interactive, intimate, enlightening, and fun. The events also can introduce new donors to the organizations, expanding the circle of support.
Capacity Partners’ client Montgomery Coalition for Adult English Literacy (MCAEL) in Rockville, MD, provides learning opportunities for multi-lingual adults for whom English is not their first language. MCAEL’s annual Adult Spelling Bee is a perfect vehicle to generate better understanding of the organization’s mission.
A Farm Less Ordinary (AFLO) provides employment, training, and a welcoming community to people ages 15-62 with intellectual and developmental disabilities (ID/DD). AFLO’s Feast in the Field is a multi-course dinner at one of AFLO’s locations. It provides a chance for supporters to meet the Growers (those employed by AFLO) and see the experience they are getting up close.
Capacity Partners Consultant Laura Cohen Apelbaum says, “There is a feeling of community and family. It is personal and hands-on.”
A Window into Challenges
MCAEL’s Adult Spelling Bee format “showcases the difficulties of the English language,” says Executive Director Kathy Stevens. Supporters get a clear window into the challenges faced by the thousands of people who benefit from MCAEL’s programming every day. MCAEL programs help adults learn a new language to support any and all of their life goals, including employment, education, speaking with a doctor, and helping children with schoolwork.
The Bee will be in its 7th year in 2023 (there was a COVID hiatus). Various bells and whistles have been added and subtracted over the years. In its current form, there are celebrity judges as well as contestant teams from the ranks of the Montgomery County, MD, business, nonprofit, and political communities.
The teams compete in a traditional, sometimes raucous, spelling bee in front of an audience of people who have purchased tickets. Businesses and individuals also can get involved via a range of sponsorship opportunities, including by sponsoring specific letters (in honor of someone if desired).
Spot On for Mission
Stevens says a key to success is keeping the event “very accessible and participatory,” including a new audience participation activity involving Twitter, which was introduced in the past few years. Audience members can try their hand at spelling a word that is given orally – the first person to spell it correctly with the right hashtag on the Twitter feed wins a prize.
She notes MCAEL plans to continue with the Bee while making adjustments. At some point down the road, the organization will assess if the event has run its natural course. For now, the Bee “continues to be spot on in terms of our mission.”
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The name says it all: A Farm Less
Ordinary (AFLO), in Loudoun County, VA, is not your average farm. Founders Greg Masucci and his wife Maya Wechsler, self-described former city dwellers, have always been committed to finding meaningful work for those with intellectual and developmental disabilities (ID/DD), Masucci says.
Several years ago, they realized there was an absence of programs to help people like their son, who has autism gain job experience in a meaningful way as they grew into adulthood, as well as very few opportunities for social interaction. They created AFLO to address these gaps.
The organization’s mission is to provide employment, training, and a welcoming community. The organization employs about 25 people ages 15 to 62 with ID/DD, who are known as “Growers.” The program cultivates a sense of self-worth and independence for the Growers through a basic job skills training program, and through employment itself.
“We kill a lot of birds with one stone,” says Masucci: providing Growers with income, pride, and the opportunity to work; providing caregivers with some respite; and growing great produce that is donated to local food pantries and distributed through a local Community Supported Agriculture (CSA) program.
In June, AFLO wrapped up its third annual Feast in the Field fundraiser, an evening farm-to-table gourmet meal served at AFLO’s farm in Leesburg, VA (a second farm site is in Lovettsville, VA). Every bit of the event is aimed at sharing an intimate AFLO experience with supporters. This includes keeping attendance to 100 – 125 people. Attendees can bring guests to introduce them to AFLO, which has expanded the organization’s support.
Much of the produce served at the meal was grown at the farm. Before the meal begins, Growers give small groups of attendees tours of the fields and other parts of the facility. These give guests a chance to interact with the people AFLO serves while getting a sense of the pride AFLO’s Growers take in their meaningful work on the farm.
Capacity Partners Consultant Laura Cohen Apelbaum notes, “It’s not a ballroom.” Having the event on-site “is the best way to showcase the mission.”
‘A Gala Doesn’t Connect’
Masucci echoes that. “A gala doesn’t connect to what we are doing.” The on-site feast gives supporters a much greater understanding of the many goals of the organization. There is something therapeutic and rejuvenating about getting your hands in the dirt, he observes. Being on-site helps supporters understand that the work done at the farm by the Growers is a viable therapy model.
He also notes that people like to feel they are supporting something essential, adding, “Where would we be without farming?”
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Here are six lessons from nonprofits who have created successful small events.
