Strategic Planning for Community-Based Small Nonprofit Organizations: Implementation, Benefits, and Challenges

Abstract

IntroductionFacing the sluggish economic recovery, most nonprofit organizations are experiencing the unprecedented challenges of seeking sustainable funding and donations, retaining high- quality staff, effectively providing services, and attracting qualified volunteers (Mosley, Maronik, & Katz, 2012). Community-based small nonprofit organizations are more vulnerable to the constantly changing political, economic, financial, and demographic environment (Mara, 2010). Strategic planning can serve as management tool for capacity building of small nonprofits and help organizations develop strategic thinking and adapt to environmental changes (Bryson, 2011). Yet, strategic planning takes time and costs extra human capital and monetary resources that small nonprofits do not have (Mara, 2010). To address this dilemma, this study examines the application of strategic planning to small nonprofit organizations, which has been less studied.A large number of studies have examined the organizational and environmental factors influencing the use of strategic planning, strategy formulation and implementation, and the impact of strategic planning on organizational performance outcomes (Crittenden & Crittenden, 2000; Poister & Streib, 2005; Poister, Pitts, & Edwards, 2010; Siciliano, 2006; Stone, Bigelow, & Crittenden, 1999). Strategic planning has demonstrated potential for improving social performance and financial performance for small nonprofit organizations (Siciliano, 2006). Yet, most of the existing studies on strategic planning in the nonprofit sector have focused on the well-established nonprofit organizations, while few case studies have explored the benefits and challenges of utilizing strategic planning and management in smaller, less established organizations (Mara, 2000). Knowledge remains limited about the use of strategic planning in small nonprofit organizations. Hence, it is worthwhile to identify the role of strategic planning and management for small nonprofit organizations in their management and capacity building.This research examines the following questions: Can strategic planning help small nonprofits improve management and performance? What are the major challenges facing small nonprofit organizations when using strategic planning in their management practice? To answer these questions, we conducted an online survey and focus group studies of executive directors and senior staff of small nonprofit organizations in southeastern state in the United States. This research suggests that with leadership and other organizational support, small nonprofit organizations can use strategic planning to develop and sustain in an uncertain economic environment.Literature Review & BackgroundConsiderable literature has focused on the adoption and implementation of strategic planning in public, private, and nonprofit organizations (Allison & Kaye, 2005; Bryson, 2011; Moore, 2000; Morrisette & Oberman, 2013; Poister et al., 2010). This section begins with reviewing the impacts of strategic planning on public and nonprofit organizations, and then addresses the potential benefits of strategic planning for small nonprofit organizations. Next, it identifies factors influencing the use of strategic planning in nonprofit organizations and discusses the challenges facing strategic planning for community-based nonprofit organizations.Strategic Planning for Public and Nonprofit OrganizationsSince the 1980s, strategic planning has been widely adopted by public, private, and nonprofit organizations (Bryson, 2011; Heriot, & Loughman, 2009; Mintzberg, 1993; Moore, 2000; Poister & Streib, 1999; 2005; Poister, et al., 2010). According to Bryson (2011), strategic planning is a deliberative, disciplined approach to producing fundamental decisions and actions that shape and guide what an organization (or other entity) is, what it does, and why (p. 7-8). There are core steps of strategic planning across large number of studies (Allison & Kaye, 2005; Bryson, 2011; Moore, 2000). …