Imagine pouring your heart and soul into a cause, only to see your nonprofit struggle to make an impact. Despite the passion and dedication, some nonprofits fail not because their mission isn’t worthwhile, but because they lack one crucial element: strategic decision-making. The difference between success and failure often lies in the ability to plan, adapt, and execute a clear strategy.

     One of the greatest examples I can think of is an outreach ministry that I saw change its service delivery model firsthand. It originated as a resource model in which a woman facing an unplanned pregnancy might arrive at the outreach center and would receive resources like help with transportation, diapers or formula. But this ministry realized that there were others in the community doing the same thing and that they just weren't seeing an impact in support to these women. So, they adapted! They relocated to be right on a bus route and very close to a university. Then they began to offer medical services which was a major model shift from consumable resources alone. They didn’t stop providing the initial resources, but by pivoting to offer medical services in a more strategic location, they intersected with women earlier on in their journeys, where they could offer a lot more support and ultimately be more effective in reaching the women they were called to serve.

     Just as for–profit businesses go through a life-cycle, nonprofits experience the same cycles of maturity. Strategic decision making is needed throughout the lifetime of a nonprofit. There’s never a point where it’s possible to switch to “autopilot.”  Ironically it’s common just after the maturity phase there can often be a decline. At some point, every nonprofit will face a decision about whether to renew its purpose or face potential decline.  Whatever stage a nonprofit is in, the absence of strategic decision-making can cause failure. 

A Lack of Clear Vision and Mission Alignment

One of the primary results of not having scheduled and intentional strategic decision-making is a misalignment between an organization's activities and its mission. When nonprofits don't make deliberate, strategic decisions, they may find themselves pursuing projects that don't align with their core purpose or mission. Without a clear strategy, an organization risks drifting away from its goals, which can lead to wasted resources, confusion, and loss of focus.

Inability to Adapt to Changing Needs

     Another example happens when we don't adapt to changing needs. This one hits close to home for me! You see, before I launched my consulting business, I had dreams of helping nonprofits. I was serving in a large nonprofit having a great impact. I'd been there for almost 20 years and I started to have visions of what it would look like to serve so many more amazing people doing amazing things. But, I took those ideas and put them up on a shelf until Covid happened.

     You see, during that time we had to adapt to changing needs and many people were jumping on Zoom calls, trying to find help, and supporting one another. I found myself in a room full of leaders asking financial questions and trying to figure out how they would navigate the financial decisions ahead of them in such unprecedented times. Well, just like in Covid, so often in a nonprofit, we need to adapt so that we can meet the needs of those we're called to serve and make those strategic decisions.

     Realtime data, (knowing what the facts are) can really help improve strategic decision making. So if you're on the board of a nonprofit and you don't have an idea about the effectiveness of what's happening or you can't measure quantitative or qualitatively that what you're doing is actually achieving your desired result, I want to invite you to pause and figure out how to do that.

     Just a reminder, this is what I do! This is one of the things I get to step into nonprofits and help do! I often do special consulting projects with nonprofits to take this pause for strategic decision-making to evaluate the effectiveness and financial sustainability of what they're doing and to make those pivotal decisions that really can set them up for long-term success.

     The bottom line is, a failure to adapt in your nonprofit will result in those outdated programs that no longer resonate until, all of a sudden, you’re just doing what you’ve always done, but you’re not actually meeting the people you want to serve. For instance, a nonprofit that doesn't strategically incorporate technology in its outreach efforts could fall behind, missing opportunities to engage a larger audience or connect with younger generations.

Inefficient Resource Allocation

     Nonprofits, especially smaller ones, often operate with limited resources. Whether it’s funding, staff, or time, every nonprofit needs to make careful choices about how it allocates its resources. Without a strategic decision-making process, resources can be allocated inefficiently, leading to missed opportunities or an over-extension of the nonprofit’s capacity.

     Maybe you've got two staff working on one program when the reality is, you only need one and you should utilize that extra person elsewhere. what if the way you're managing your business office is so manual and cumbersome that you've got so many staff doing that and with the use of some really cool technology like Ramp, (check out my video on Ramp) you could actually repurpose some staff into program and mission opportunities?

     Another area where I've seen nonprofits waste time and money is fundraising events. Sometimes, a fundraising event is consuming all of the staff for three months resulting in not serving clients or neglecting the mission and programs. Then, at the end of the day, when you measure it, the actual revenue gained from the event doesn't justify the return on investment.

    Sometimes, we hire staff or fund programs that aren't contributing to our goals, which also results in financial instability and an ineffective use of our resources. So, we need to use strategic decision making to help prioritize- being truthful to ourselves about what is most impactful and clearly evaluating whether every dollar spent aligns with our mission.

Failure to Measure and Evaluate Success

     Effective decision-making involves evaluating whether or not efforts are achieving the desired outcomes. Nonprofits without a strategic framework often fail to measure their progress, leaving them unable to assess their effectiveness or make necessary adjustments. When outcomes are not regularly evaluated, organizations risk continuing on a path that is ineffective or inefficient, draining resources without achieving measurable impact.

     Strategic decision-making includes developing systems to track progress, gather feedback, and assess the results of programs and initiatives. By actively measuring success, nonprofits can adjust their approach, refine their strategies, and better serve their communities.

Conclusion

     Strategic decision-making is a necessity. The failure to make deliberate, informed decisions can hinder a nonprofit’s ability to fulfill its mission, adapt to changes, and manage resources efficiently. By developing a strategic plan, nonprofits can position themselves for long-term success. I am a strategic partner with nonprofits who want to move their mission forward. You can access our FREE Tool, The Lifecycles of a Nonprofit - to explore what strategic decisions are needed for your organization and we welcome the opportunity to work with you in making them a reality!

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Download The LifeCycles of a Nonprofit Worksheet