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The Importance of Strategy for Nonprofits
by Rosemary Bayer* and Lee Gorman**
Given all you have to do just to keep your organization afloat these days, is it really prudent to divert some of your efforts to strategic planning? Or isn't that kind of thing better left to a quieter time in your organization's schedule?
Tempting as it may be to put off what seems like one more burden when you are already stretched to the limit, a good strategy can provide immediate benefits, and help ensure the long-term success of your organization.
Here are five reasons for your nonprofit to revise (or develop) - and use - your written strategic plan.
1. Competition for charitable dollars
Donors, both corporate and individual, want to see how their contributions will be used to further the organization's mission and its future plans. Furthermore, foundations often require a strategic plan when an organization applies for grants. With greater competition for grant money, organizations that can show a solid plan have a distinct advantage. One nonprofit put its strategic plan to very good use in building its capital campaign. Because the organization clearly articulated how it planned to grow and continue its mission, it was able to attract vital funds needed to implement the plan.
2. Continuity
Any organization can lose momentum when there is turnover of leadership, either executives or key board members. When much of an organization's work and success is built on an internalized, yet unwritten, vision, the loss of key people can be devastating. Not only is the energy of that vision diminished, but it may be difficult to clearly identify the skills, knowledge, or values needed in replacement candidates. With a strategic planning document, vision and mission are articulated - and can be communicated-- to help guide succession planning and ensure everyone is focusing on the most important priorities.
3. Decision making and alignment
A good strategic plan serves as a ‘north star' for guiding your decision-making on big issues. This, of course, is where you really put your plan to work! Having and using that plan can make board members, who may have only a few hours a week for the organization, more effective in their governance of it. When addressing questions of whether to expand, contract, branch out, initiate a capital campaign, or any other major action, the board and executives can look for consistency of the action with the existing strategic plan.
Often there is a good strategy, but leadership may be distracted by a new opportunity, and forget to consider whether that opportunity is actually consistent with the long term strategy. One organization, flush with the success that came largely from compliance with its plan, strayed from some of its core values. Unfortunately, these decisions led to significant financial difficulty. Although it did recover, it was a painful lesson that could have been avoided by making sure all major decisions were consistent with the existing plan.
4. Uncovering hidden or potential problems
One of the greatest values in revising a strategic plan is in the process itself. Since developing a good plan requires a solid assessment of the present situation as well as historic and future trends, it can sometimes uncover issues of which either management or the board were unaware. It can also identify potential problems with the desired strategy. One organization, in developing a strategic plan, discovered that the management structure was inadequate to oversee the desired growth and had to be reinforced before such changes were made. Another uncovered significant operational process issues that were costing a great deal of time and money.
5. Positioning in a world of overlapping services
Overlap of services provided by nonprofits is adding to competitive pressures. There is also growing merger and acquisition activity in the nonprofit sector. A strategic plan clearly identifies your niche(s) and outlines your competitive strengths. It can help pinpoint areas for savings through cooperation, such as merging back office operations. It can also assess the potential for partnerships to increase revenues or share resources.
While setting you up for a successful future, the strategic planning process also offers more immediate benefits, including:
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Identifying and correcting misalignments between board, director, donor, and staff understandings of mission;
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Developing action plans to ensure your focus remains on mission-critical activities and that you are operating as efficiently as possible (getting the most for your money);
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Pinpointing work that can or should be eliminated as not core to the organization's goals.
In our next installment, we will explore the difference between mission and vision, and explain how both help you establish achievable goals, strategies and collaboration.
See you next month!
Lee and Rosemary
*Rosemary Bayer is Chief Inspiration Officer for ardentCause, L3C, a company dedicated to helping nonprofits increase capacity through operational performance improvement and the adroit use of technology. She has 25 years in the Information Technology industry, and excels at inspiring varied groups of people to pursue a common vision, as well as problem solving and inventing. Experienced in both for-profit and not-for-profit ventures, she was a founder of the nonprofit Michigan Council of Women in Technology (now 650-plus members) and founder and president of the MCWT Foundation.
**Lee Gorman,the founder of Barton Consulting Services, LLC, is an insightful, results-oriented executive with over 25 years of diverse experience in strategic planning, product planning, implementation and leadership. She has particular expertise in assisting organizations to understand and articulate their missions, visions, and values statements, and then to develop specific goals and strategic priorities. She has demonstrated this proficiency in health care, educational, automotive, and other for-profit and nonprofit businesses.
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It Benefits You |
Save the Date |
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Community Grants Training
Friday, February 12, 2pm - 3pm
Washtenaw County Library Learning Resource Center
4135 Washtenaw, Ann Arbor
The Community Grants Online Application system allows Washtenaw County area nonprofits to submit online applications to several local funders. Come to a free training session to learn the ins and outs of this application process. Registration is required. More information.
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Seminar: Best Practices from the Best-Managed Nonprofits
Board Leadership and Innovative Resource Strategies
Monday, March 8, 2pm - 7pm
Lawrence Technological University, Southfield
DTE, Crains and Lawrence Tech welcome you to this sixth annual event that recognizes Detroit Public Television, winner of the 2009 best managed nonprofit award. Learn from experts about financing and funding. Come for the seminar only (until 5pm) or come just for the networking reception (5pm-7pm) or stay for both. More information including pricing and registration.
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5th Annual Nonprofit Management Conference
Thursday, April 22, 8am - 4pm
Walsh College, 3838 Livernois, Troy
$50 Troy Chamber members / $95 Non-members
Registration includes continental breakfast, buffet lunch, and four workshops on these topics: fund development/donor relations, marketing, governance and operations, technology, leadership & human resource management, finance/accounting, and strategic planning.
Luncheon keynote speaker: Michael J. Brennan, President & CEO, United Way for Southeastern Michigan. Register now.
Questions? 248-641-8151 or theteam at troychamber.com
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Michigan Nonprofit SuperConference - May 18-19. More Information.
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The Bulletin Board |
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Nonprofit Classes available at Washtenaw Community College
If you work for a nonprofit agency in Washtenaw County you may apply for a Washtenaw Community College Nonprofit Agency Scholarship, which will reimburse the tuition for attending any of the LifeLong Learning classes shown on this page, including computers and technology, social work, languages and more. We hear the Spanish classes are lively and fun, and they may be the key to great customer service. Don't miss out!
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Have your meeting at the NEW Center in Ann Arbor! If your organization is a 501(c)(3)
you are welcome to view availability, check pricing and reserve a room online.
The NEW Center also has one work station available to rent. It comes with free broadband and options for
color copier, fax, and postage machine. Tenants have access to a full kitchen, conference rooms, free parking,
and more! For details contact Lia Stevens (734-998-0160 ext. 209; email lstevens at new.org).
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npServ™ News |
Resource of the Month |
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npServ is pleased to announce that Child Care Network and Food Gatherers are winners of our recent social media giveaway. They, and other organizations, responded to our query about how nonprofits are using social media. Based on the quality of their submissions, they were selected to receive a copy of Tom Watson's CauseWired: Plugging in, Getting Involved, Changing the World as well as free admission to an upcoming social media workshop. You can follow these organizations on Twitter (@ChildCareNetwrk, @CarlSuperCarrot ) and Facebook. Contact npServ (734-998-0160 x 213) to learn more about how we can help your organization.
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FAQs about the Federal Annual Reporting Requirements for Exempt Organizations
Be aware, of what the IRS expects from your organization. Most tax-exempt organizations, other than churches, must file a yearly return or notice with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status. More information.
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Visit ResourceConnect's online database for people, websites and books to help with nonprofit management questions. Contact ResourceConnect for personal assistance 734-998-0160 x 218 or 313-887-7788 x 218. resourceconnect at new.org
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Selected Upcoming Trainings in Southeast Michigan |
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See also Webinars below.
 How to Get Your Board to Raise Money
Friday, February 12, 9am - 10:30am
NEW Center, 1100 N Main St., Ann Arbor
$35 with online registraton
Join a seasoned board member in a fast-paced session about ways to get your board to be better ambassadors. Learn how to jump start their involvement in raising money.
BoardConnect: Serving on a Nonprofit Board
Wednesday, February 17, 3pm - 6pm
Hannan House, 4750 Woodward Ave., Detroit
$50 with online registraton
Training for community members interested in serving on a nonprofit board.
Signing Sponsors in a Lean Economy
Thursday, February 18, 9am - 3pm
Detroit : Doubletree Guest Suites Fort Shelby, 525 W Lafayette Blvd.
Presented by Barbara Herrington, Sponsorship Network, for the Michigan Nonprofit Association
Cost: $80 MNA members; $100 non-members
More and more companies rely on sponsorships as an alternative to advertising to motivate consumers. Get an understanding of the benefits corporations crave and how to be successful in sponsorship sales.
Registration.
Anatomy of a High-Performing Board
Wednesday, February 24, 8:30am - 10:30am
Hannan House, 4750 Woodward Ave., Detroit
$40 with online registration
What pieces are necessary to create a strong governing structure for your organization? Learn how to get your board engaged and thinking strategically.
Anatomy of an Online Fundraiser
Wednesday February 24, 9am - 12 noon
Affirmations, 290 W 9 Mile Rd, Ferndale
Cost: $50 with online registration
Looking to leverage your online presence beyond a PayPal button? We will walk you through a step-by-step process of ideal nonprofit online fundraising campaigns, including time management and back office support. Get creative ideas to set your appeal apart. Please bring a laptop with a wireless card to access our wireless network.
More information and registration.
Best Practices Workshop: Engaging Employees and Doing More With Less
Thursday, February 25, 8am to 10:30am
Detroit Regional Chamber Headquarters,
One Woodward Ave., 19th floor, Detroit
FREE for chamber members Business Builder level and above
Learn how to maintain or increase your productivity with fewer resources at your fingertips as well as how to minimize distractions and keep employees engaged during challenging times. Learn more and register.
Tell Your Stories - A Communication Workshop
Thursday, March 4, 8am - 4:45pm
Arise Detroit, 5830 Field, Detroit
Sponsored by Michigan Nonprofit Association
MNA members $65; nonmembers $75
Engage your audiences with stories that resonate. Get up to date on the newest social media channels and hear from journalists who remain key in getting out the news. More information.
BoardConnect: Building Your Board
Thursday, March 11, 9am - noon
NEW Center, 1100 N Main St, Ann Arbor
$50 with online registration
Covers important aspects of recruiting new members for a nonprofit's board of directors including recruitment planning, identifying and cultivating candidates, and electing new members. You'll also learn about BoardConnect's matching services and boardnetUSA, a national online database that connects candidates and nonprofits.
Grant Writing Workshop
Thursday, March 18-19
Presented by Grant Writing USA
Hosted by Southeast Michigan Council of Governments
535 Griswold Street, Suite 300, Detroit
Cost: $375 special nonprofit rate
Beginning and experienced grant writers will learn how to write winning grant proposals and find grant funders in this two-day intensive workshop. Tuition includes class workbook and accompanying resource CD including more than 200 sample grant proposals. Seating is limited; online reservations are necessary. Please use code "UWSEM" to receive this $50 discount off full price at registration. More information. Or call 800-814-8191.
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For more education opportunities, see Michigan Nonprofit Association's statewide training calendar.
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Webinars -- Learn at Your Desk!
Strategic Alliances - Webinar
Thursday, February 18,1pm - 4pm ET
$40 for MNA members, $45 for nonmembers
Learn the important role strategic alliances can play in mission achievement and how they can enhance the effective use of resources. Understand the various options and the steps involved in creating a strategic alliance. More information.
What Forms Must Charitable Nonprofit, Tax-Exempt Organizations File to Meet IRS Requirements and Preserve Tax Exempt Status? - Webinar
Tuesday, February 23, 3:30pm - 4:30pm ET
National Council of Nonprofits
There is no charge for nonprofit organizations or their board members. $75 registration fee for individuals, consultants, and businesses. Register.
Ethics and Conflict of Interest Policies - Webinar
Wednesday, March 3, 2pm - 3pm ET
Nonprofit Risk Management Center
$59
What role do these policies serve and how should leaders go about developing practical policies that set the right tone for the nonprofit? Register and see the upcoming schedule.
Choosing a Database - MNA Tech Webinar
Tuesday, March 9, 10am - noon ET
$40 for MNA members,$45 for nonmembers
Get an overview of several different software packages and a solid framework to help you evaluate various databases. Register.
BoardConnect: Serving on a Nonprofit Board - Webinar
Wednesday, March 10, 1pm - 2pm
$34 when register online
For community members interested in nonprofit board service.
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Thank you to Supporters of NEW
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Special thanks to NEW's founding partner
the McKinley Foundation
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NEWSNOTES is proud to celebrate its eighth year of publication.
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