Why Strategic Planning Fails Nonprofits — And What To Do Instead

Why Strategic Planning Fails Nonprofits — And What To Do Instead

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Strategic planning. If that phrase makes your eyes glaze over—or your blood pressure spike—you’re not alone. Nonprofit leaders know they should have a plan. But what that plan looks like? That’s often where the confusion sets in.

In this episode of A Modern Nonprofit Podcast, Tosha Anderson sits down with Steve Strang, Practice Director at Spectrum Nonprofit Services, to demystify strategic planning and help nonprofit leaders stop spinning their wheels.

Steve makes one thing crystal clear: Strategic planning isn’t just a document. It’s a process. One that must adapt to your organization’s current reality—people, finances, and all.

“Our planning process helps you identify the impact you’re trying to have, and your method to get there,” -Steve Strang 

But that method? It’s not one-size-fits-all.

In fact, the “classic” five-year strategic plan might be doing more harm than good. Especially in today’s volatile environment, Steve recommends looking 12–18 months ahead—max. The key isn’t how long the plan is. It’s how often it gets reviewed, challenged, and adapted.

And that starts with asking better questions. One of Steve’s favorites? 

“How much impact can we afford right now?”

Why Strategic Planning Fails Nonprofits — And What To Do Instead

This echoes what we covered in our recent blog on Strategic Planning vs. Scenario Planning, where we broke down why static plans often fall apart—and how scenario planning can help you respond to real-time challenges with more confidence.

Whether you’re eyeing growth or simply trying to stabilize, strategic planning needs to start with reality, not wishful thinking. That means bringing in financial data, team feedback, and external factors like labor markets and policy changes. Without that, you’re building a strategy in a vacuum.

Boards, CEOs, staff—everyone has a seat at the table. But not all at once. Steve recommends a small, cross-functional task force (ideally under 10 people) to drive the process. And if that team can’t access basic performance data? That’s your red flag that systems—and people—aren’t in place to support strategy.

In the end, the best plan is one you’ll actually use. Not a report that gathers dust, but a tool that guides your team week by week, quarter by quarter.

Because strategic planning isn’t a retreat. It’s how you lead—intentionally, adaptively, and with eyes wide open.

Connect with Steve

Practice Director at Spectrum Nonprofit Services

Website: https://spectrumnonprofit.com/
LinkedIn: https://www.linkedin.com/in/stevenstrang/

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