This chapter discusses the importance of mission and strategic planning for nonprofits. It outlines the key elements of an effective mission statement and explains how strategic planning helps nonprofits fulfill their mission over time in a changing environment. Periodic review of the mission and strategic planning process involving stakeholders is necessary to avoid mission drift and adapt to changing needs.

1. Chapter 5: Role of
Mission & Strategic
Management

2. The Mission As Critical For
Nonprofit Success
 What is mission?
Guides nonprofits in addressing
public needs
 5 nonprofit characteristics to
keep tax-exempt status:
1. Social contract
2. Permanent
3. Clear
4. Approved
5. Demonstrable

3. Organizational Values &
Role of Stakeholders
 Values form foundation of:
Vision
Mission
Goals of nonprofits
 Vital for success
Clearly articulated mission
Strong values
 Mission and values 
organization’s culture
“How we do things around here”
 Norms, values, rituals, symbols

4. Role of Leadership In
Planning & Meeting Needs
 Effective leaders align w/
nonprofit values, mission,
strategies, culture
 Leader’s enthusiasm and
passion
Ex. John Muir and the founding of
the Sierra Club
 Board: responsibility of
determination & maintenance
of organizational mission
John Muir, Sierra Club
founder

5. Managing The Mission
 Benefits of road mission
statements
Adaptability & pragmatism
Ex. Andrew Carnegie’s social
change organization, Carnegie
Corporation of New York
 Concept of “Mission stickiness”
Too much rigidity in original mission
when environment demands
change

6. Managing The Mission
(Cont.)
 Resource dependence can
lead to “mission drift”
 Other potential factors:
Attempts to meet priorities of
external funders
Too large of an endowment
Pressure to operate more like
a business

7. How To Avoid Mission Drift

8. Nonprofit Mission &
Change
 Periodic review of organization’s mission
as times & organization changes
 Lessons for nonprofit leaders:
 Must have clear understanding of org. &
mission
 Recognize that org. & environment will
change
 Organizational change usually comes
form the top
 If organization fulfills mission: expand or
change the mission
 Rare, but happens: the National
Foundation for Infantile Paralysis
(NFIP), established by FDR

9. Importance of Mission
Statement
 Must be reflection of mission
and purpose of organization
 Organizational improvements
and motivating innovation
 Provides framework to help
evaluate nonprofit’s
effectiveness, offering
credibility
 Motivator for boards, staff,
volunteers, and donors

10. Importance of Mission
Statement (Cont.)
 Characteristics for mission
development:
Clear, concise, to the point
Express societal need that the
organization fills
Distinct enough for people to
distinguish from others
Demonstrate organization’s
commitment to underlying values
 (pg. 108) Differences in theatre
nonprofit missions

11. Importance of Mission

12. Organizational Vision
 Vision statement: hopes for the
organization
Growth, guiding leaders into the
future
 Organization’s vision connects
with that of others & involves
collaborative efforts
John Muir’s promotion of U.S.
National Park Service helped
create Canada’s National Park
System

13. Strategic Planning &
Management
 Strategic planning: process of
goal identification and
determination of next steps
designed to fulfill
organizational mission
Provide evaluation and
feedback that leads to
improvement
Should be undertaken by
nonprofit board, executive
director, w/input from
management staff

14.  Organizational Goals:
Discussion over the means to meet those goals
Outcomes that are used to indicate the organization is
fulfilling its mission
 Organizational Accounting:
Assessment of financial capacity
Through analysis of the strengths, weaknesses,
opportunities, and threats (SWOT) analysis (explained
next slide)
Strategic Planning &
Management (Cont.)

15. SWOT Matrix
Each cell in the matrix offers a generic strategic option for
decision-makers

16.  Measuring & Evaluating Outcomes
Nonprofits should use multiple methods and measures of
outcomes of service activity
 Learning From Evaluation
Business planning concepts: market analysis, revenue
projections, marketing plans
More information about nonprofit management: The Alliance
for Nonprofit Management (www.allianceonline.org)
Strategic Planning &
Management (Cont.)

17. Steps in the Strategic
Planning Process
1. Determination of Nonprofit Values, Mission, Vision
2. Setting of Organizational Goals to Accomplish Mission
3. Organizational Accounting via SWOT Analysis or Other
Analytical Tool
4. Systematic Planning of Strategies to Meet Organizational
Goals
5. Measure Outcomes/Evaluate Performance in Meeting Goals
6. Learning from Evaluation: Midcourse Corrections/New
Strategies

18. Questions For Review
1. We have made the argument that a strong mission and vision
and a solid strategic plan will help to strengthen the role of
nonprofit agencies and philanthropic foundations in the public
policy process. Trace the logic of this argument.
2. A key point of this chapter has been the importance of having a
well structured and solid mission statement. If they are so
important, how can we explain why nonprofit mission statements
are often lacking in substance or are occasionally not even
developed?
3. Consider the process of strategic planning in large versus small
nonprofit organizations. Are there ways in which the process
differs depending on organizational size? Does the need for
strategic planning vary according to organizational size?