Page 22 - 2025 Nonprofit Industry Trends

STRATEGIC
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PLANNING
A n active strategic plan is a critical puzzle piece for the success of a
nonprofit organization. This is the document that should include
guideposts for your organization’s future, a foundation for alignment,
and a clear picture of your priority areas. Many organizations have been
functioning in crisis management over the last 5 years or so. Nonprofits
should use 2025 as the year to once again think strategically.
Here are the some of the most significant challenges – and areas to be
particularly cognizant of in planning for 2025:
Capacity & Resource Constraints – Stating the obvious here...but
nonprofits often operate with limited financial, human, and time resources,
making it difficult to dedicate sufficient effort to robust planning processes.
This makes the need to prioritize and define your mission pillars even more
critical.
Mission Creep - Balancing innovation with the core mission can be
challenging. External funding pressures or shifting community needs may
tempt organizations to pursue opportunities outside their original mission.
Access to Data & Evidence - Limited access to accurate data for decision-
making can hinder the development of realistic and impactful strategic
goals.
Stakeholder Alignment - Engaging diverse stakeholders (e.g., board
members, staff, funders, and the folks you serve) is essential, but it can also
lead to conflicting priorities or visions for the future.
☑ Implementation & Accountability - Translating a strategic plan into
actionable steps often falters due to unclear roles, lack of accountability, or
difficulty in monitoring progress.
Rapidly Changing External Environment – Think: The “Threats” in your
SWOT Analysis – the external factors that are out of your control; the most
daunting. These are typically the economic, political, and social shifts that
can wreak havoc on your strategic plan.
Addressing these challenges requires intentionality, ongoing communication,
and a commitment to creating a culture of continuous improvement. One
of my favorite nonprofit leaders likes to say, “Culture eats strategy for
breakfast!” But the good news is there are reliable best practices to stem
the tide of challenges – I’ll leave you with a few:
► Engage Stakeholders: Involve all relevant parties in strategic planning
to build buy-in and ensure diverse perspectives.
► Prioritize Capacity Building: Invest in staff and board training, including
leadership and fundraising skills.
► Use Data-Driven Approaches: Leverage technology and partnerships to
access the data necessary for informed decision-making.
► Foster Board Accountability: Set clear expectations and conduct regular
assessments (and self-assessments!) of board performance.
► Plan for Flexibility: Design strategic plans with adaptability and
monitoring practices in mind, allowing for adjustments in response to
external changes.
► Strengthen Recruitment Pipelines: Develop targeted recruitment
strategies to find board members who align with the organization’s
mission and needs.
CHRISTINE DESKA
PRESIDENT & CO-FOUNDER
BELLESBOARD &
NONPROFIT SECTOR STRATEGIES
22
ALISON LA FERLITA DR. CHRIS ROSA
EXECUTIVE DIRECTOR PRESIDENT & CEO
NONPROFIT RESOURCE HUB THE VISCARDI CENTER
Nonprofits need to adopt strategic approaches to remain sustainable in the coming As we move into 2025, with a new federal administration and new
year. Diversifying revenue streams is essential to reduce reliance on government grants Congress, we must closely monitor social service policy and funding trends
and single-source funding. This can be achieved by developing mission-aligned earned to anticipate how nonprofits can best position ourselves to address unmet
income ventures, pursuing corporate sponsorships, or launching fee-for-service models.
For instance, nonprofits could offer consulting services in their area of expertise or needs in our communities. For example, if there are reductions in federal
collaborate with businesses on cause-marketing campaigns. These approaches generate support for key social programs and services, there will be greater demand
unrestricted funds that can support operational expenses, including staff salaries. and opportunity for not profits to fill service gaps.
To provide competitive salaries, nonprofits should consider creative compensation In light of anticipated challenges facing nonprofits, our organizations
strategies. Offering flexible hours, remote work, and professional development need to be nimble to quickly adjust to changing economic and regulatory
opportunities can help attract and retain talent without significantly increasing salary conditions and to address emerging needs of those we serve. As a sector,
budgets. Non-traditional perks, like wellness stipends or childcare assistance, can also be nonprofits must be more willing to collaborate and work in coalition to
powerful incentives. Additionally, shared services models—where nonprofits collaborate
to share resources, such as HR or financial management—can alleviate budget constraints address the complex needs of those we serve.
and allow for higher staff compensation.
Stronger advocacy efforts are vital, but many nonprofits with lean, overworked teams Nonprofits’ reliance on public funding to finance their missions poses
must be strategic. Small organizations can collaborate with others to build coalitions, significant risk to program sustainability. Indeed, given uncertainty about
public funding, it is more important than ever for nonprofits to diversify their
share resources, and amplify their collective voice. Engaging board members, volunteers, revenue streams to expand donor giving, foundation support, corporate
and community partners in advocacy work can also extend reach without straining
staff. Advocacy efforts could include attending local government meetings, participating partnerships, and income through social enterprises.
in sector-specific roundtables, or using digital platforms to mobilize supporters and
influence policy.
Taking these proactive measures will equip nonprofits to face the challenges of the coming
year head-on. By diversifying funding, adopting innovative compensation strategies, and
engaging in strategic advocacy, organizations can enhance their operational sustainability
while continuing to fulfill their missions. These changes will not only address immediate
pressures but also strengthen nonprofits’ ability to adapt and thrive in an evolving
landscape, ensuring they remain resilient and effective in serving their communities.