Strategic Planning for Nonprofits: External and Internal Forces

Nonprofits emerging from COVID are faced with many of the same challenges as other institutions, but a critical difference lies in the nature of the organization's income: its close connection with its customers, or rather donors and patrons. For many organizations, COVID was a galvanizing moment, with donors stepping up to fund and maintain these entities. For others, especially those without a handful of deep-pocketed benefactors, they experienced a diminished connection with their patrons.

As we emerge from COVID, many of these institutions are taking stock of their financial situation and embarking on new strategic planning initiatives to chart a stable and sustainable path forward.

One key step is to assess the external and internal factors that drive an organization's operations and success.

External forces include the target audience's needs and demographics; local and regional economic trends, especially among potential donors and patrons; the impact of technology--especially during and post-COVID--on the organization's offerings; and social and cultural changes in attitudes. In some cases, it may also be worthwhile to conduct a competitive analysis to understand how other organizations might be responding to the post-COVID landscape.

Internally, it is important to assess any changes to the organization's strengths and weaknesses as a result of COVID; conduct a renewed stakeholder analysis to recalibrate expectations and organizational influence; evaluate the effectiveness of the organization's processes and workflows as well as fundraising and marketing strategies; and even the governance structure and decision-making processes.

By conducting a comprehensive analysis of the external and internal forces at play, nonprofits can gain insights into their operating context, anticipate potential challenges and opportunities, and make informed decisions when recalibrating their post-COVID strategic plans.