Strategic Planning For Not For Profit Organizations

ReferencesRobert D. H. & Associates (2005). THE JOSSEY-BASS HANDBOOK OF NONPROFIT LEADERSHIP & MANAGEMENT (2nd ed.). San Francisco, CA: John Wiley & Sons, Inc.

Moreover, this case study analysis focuses on AMC and the challenges that the nonprofit faces during the restructuring of a club that operated primarily by volunteers to a professional managed organization. This case study analysis will provide the following: descriptions of the problems AMC is challenged with, an identification of AMC’s major players using a stakeholder analysis, and finally, provide recommendations and strategies to solve AMC’s challenges. After conducting this case analysis, one will understand how an organization can experience significant challenges as it transitions so that an organization can stay competitive in the nonprofit sector.

The diversity of nonprofit organizations, services provided and the problems faced shows that nonprofits require leadership with an in-depth understanding of the multifaceted nonprofit landscape. Understanding the culture of nonprofit work is also crucial and much easier to understand once you have been through a nonprofit management program. My career interests lead me towards an avocation of a deeper knowledge of strategic management/planning, legal structure and standards, increase my skills in quantitative analysis of policy, financial governance and developing fundraising strategies. These areas allow for macro management within the nonprofit

At the center of any successful nonprofit organization there is an effective chief executive and board of directors. These leaders must work as a team with a vision and specific skills, to effectively produce resources in order to accomplish the organization's goals. The majority of the decision making authority and leadership is shared amongst board members; however, critical management skills and day-to-day operational decisions rest within the authority of the chief executive. However, members of the board must also be sufficiently skilled in management in order to assess the work of its director to assist in the implementation and evaluation of strategic decision making.

When Zoot Velasco looks at American nonprofits, he sees a sector that is struggling, in spite of limitless potential for innovation and impact. Noting that 22.3% of the country’s GDP is in the nonprofit sector, yet only 20% of such organizations have a budget exceeding $1 million, Velasco hopes to lead a transformation in the industry.

This paper was originally written for Financial Management for Nonprofits 380, taught by Professor Zelhart.

1. Connors, T. D. (2001). The Nonprofit Handbook. New York: John Wiley & Sons, Inc. [US].

Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement: 4th ed. San Francisco: Jossey-Bass.

In a nonprofit organization, managers are concerned with “generating some social impact” (Daft, 2013). Stakeholders for nonprofit organizations include the community, taxpayers, the government, private donors, employees, and volunteers. Each one of these stakeholders poses a challenge for managers. For instance, in a nonprofit organization, there is a “continual struggle to pursue vital social missions in the face of

Social entrepreneurship is gaining such strong interest in nonprofit world because of the economic challenges that have plagued this sector with cuts in philanthropic and government funding. According to Nash (2010) not only are there cuts, there are many organizations vying for the limited funding. Studies support, the attitudes in capitalistic America, and the ease of nonprofits to embrace this concept; evidenced by their ability to sell their once free services, to meet the demands of the consumer. According to the IRS (2010) nonprofits have increased their selling power on unrelated business income, to the tune of 184% increase, in a sixteen-year time frame. This writer, believes these numbers are evidence which support this trend is

A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.

Marketing gets no respect in the nonprofit world. Program people tend to hold the most senior positions in nonprofits and accordingly

Strategic Planning is the process by which leaders of the particular organization make a choice and decide to set up different strategies that will enable the organization to achieve better performance and continue on the path of success. The framework of the strategic planning can be defined as the social role of the organization, environment, technological and human resource factors all working as one in order to achieve the goals set in place by the organization. In the case of a non-profit organization, like Goodwill industries, where the industry sector is tremendously diverse in terms of the work Goodwill undertakes, the organization still needs a strategic plan. The way that a strategic plan is developed depends on the requirements for strategic planning in non-profit organizations, just as for profit organization, can and always should be designed to bring success, remain profitable, and avoid failure and misuse of much needed resources.

This blueprint, when properly designed, can permit an organization not only to operate more efficiently internally, but also to operate more effectively externally within society. When focused both internally and externally, such a strategic plan allows a public or non-profit entity to establish itself as a high impact organization. A high impact organization is an organization that is focused on creating extraordinary levels of social impact. It is an organization that moves beyond focusing on other organizations and entities as just competitors and instead looks upon these organizations as potential collaborators with which to develop joint policies and coordinated actions, which collectively will have a greater impact on society than will the unilateral actions of the non-profit.

A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.