The prospect of completing a plan for the entire coming year, not to mention the next two or three years, is daunting for any nonprofit leader. If your organization is going to pull it off, the burden of planning events, revenue targets, grants goals, hiring needs, etc., can't fall solely on the shoulders of a few executives or managers.
To make planning more doable, nonprofit leadership teams need to remember one key fact: strategic planning should be done from the bottom up, rather than from the top down.
A nonprofit leader intent on setting a smart strategy should establish a vision, using concrete numbers and goals based on information from staff who are in the trenches. This two-pronged approach will result in a more robust and realistic plan, informed by ideas from staff who are now more motivated to implement the plan.
If this sounds impossible (or at least messy), worry not! The best planning method balances the leadership's expertise with the staff's knowledge of day-to-day work.
So . . . how can you implement the bottom-up approach in your strategic planning?
First things first, you (the leadership team) must nail down your vision for the coming year(s). Not only do you need to set goals, but you also have to identify the resources (both human and financial) necessary to reach them. This is the crucial first step.
Next, flesh out how growth in the next year could relate to your mission and how it could impact the direct beneficiaries of the organization’s work. Further, how could it fill a gap in your sphere of influence?
As earlier mentioned, getting employee buy-in on fundraising goals is one of the best ways to reach (or exceed) them, and it is essential to bottom-up planning. Hopefully you have staff members dedicated to your mission without this, but the fact is that people who have some say in a decision will automatically be far more motivated to reach those goals than if they are simply told by their managers what to do.
Get people excited and make the budget increase you need to achieve the vision. Then move to the next step . . .
No, not from scientists, but from the employees who will execute your strategic plan. For instance, let’s look at an important development department area.
You could say to Joe, who runs your major gifts program, “Last year we raised $1 million in major gifts, so this year we need you to raise $1.3 million.”
Joe would get the picture but depending on the major gifts landscape he’s working with, that goal might be completely out of reach. Repeat this scenario too many times, and you may end up on the merry-go-round of constant rehiring for crucial roles after Joe and his fellow development leaders throw up their hands and move on to a more sensible setting.
A better approach for establishing a plan that's ambitious AND achievable:
“Joe, you raised $1 million in major gifts last year. You know our vision, and we’ve projected that raising $1.3 million would be ideal to achieve that this year. Do you think that target is possible based on the current landscape?”
Let him consider the question and get back to you with hard facts and his best estimate. He may tell you that one of your biggest donors has split, leaving a sizable gap in your fundraising capabilities. Or, he may suggest an even higher number than your target, citing new and promising donors whom he has identified.
Repeat this for each area of your organization, determining realistic projections for direct mail outreach, number of events, expansion of your programs, etc. Allow yourself to learn while you inspire your employees to push themselves and use critical thinking.
If the growth you’ve been seeking just isn’t happening, it’s time for a thorough audit, but not solely in the financial sense. Look objectively at the organization and ask a couple of key questions:
1. Is your staff inspired by the organization’s vision and mission? Are they spurred on by the good it does in the world? If not, determine where you're falling short, and consider what you can do to build trust and galvanize staff to the cause.
2. How much time does your development staff generally spend on donor-facing, revenue-generating work? It is likely that you’ll find less priority is placed on these activities than is ideal for your target revenue. Never underestimate the power of face time with your current (and potential) donors. If you have a small development team with multitasking staff, consider what you can do to re-prioritize, shift, or reorganize your work to allow for more important personalized donor outreach.
This type of strategic assessment takes time and brain-space that some nonprofit leaders don’t have, and in that case it may be worth hiring a firm that can do the heavy lifting for you.
This method works fantastically for organizations looking for a well-rounded approach to strategic planning. It is not, however, an excuse for employees to hamstring development because they're willing to settle for mediocrity.
This is why it is so important to emphasize the value and impact of your mission company-wide. The more supported and inspired each employee feels about their work (especially in development), the more likely they will be to promise excellent estimates for next year’s targets—then achieve them.
Perfect your vision and pitch, involve your staff in a meaningful and practical way, use their wisdom and insight to identify the roadblocks you must remove on your path to amazing organizational growth.