Strategic Planning Themes: A Look Back at the Past Few Years

This article was initially posted on Nonprofit Pro.

Spotify, the digital music service, has me looking forward to the end of the year. That's because it released Spotify Wrapped, a year-in-review that provides all kinds of interesting data points about its listeners as a whole and my listening habits as an individual. I find it fascinating to learn about how many minutes of music we listened to, as well as how many plays our favorite artists and songs had during the year.

This got me thinking about strategic planning themes — What are they? How could I identify them? How might they evolve year-to-year? Understanding themes and trends offers numerous benefits to you as a leader since they can help inform decisions and strategies.

I parsed through more than 10,000 rows of strategic plan elements (core components, such as mission, vision and values), focus areas and goals from more than 375 nonprofits across the last three years. I noted the most commonly used words (including synonyms) by finding keywords and reviewing their context and sequences. Here are the four common themes of strategic planning over the past few years that I identified.

1. A Focus on People

Nonprofits rightfully have a reputation of caring about living things. From people development to a focus on customers and stakeholders, that reputation is represented in strategic plans as many organizations focus on people through team development or stakeholders.

Professional Development

Nonprofits are dedicated to professional development both internally and externally. On many plans, organizations noted the need to find and offer professional development opportunities to their staff. Many are looking for conferences, seminars and other types of training to allow staff to strengthen their current skills or explore new areas of interest. Other nonprofits offer professional development opportunities as part of their programming to their constituents.

Vision statement examples include:

• Establish strong professional development programs for staff and board, improve internal operations systems, and provide sufficient wages and support for staff.

• Enable the team to meet professional development goals and create programs that they feel most passionate about and equipped for.

Goal statement examples include:

• Team members to identify two personal and professional development goals every year.

• Establish an annual professional development conference of directors in our network.
  

Board Development

Board development is another area of focus on many strategic plans. Nonprofits are focused on this group of people to ensure they have the skills, values and commitment to effectively execute their missions. Many plans mention the need to create board committees. Others are looking to expand their boards to find professionals with skills in the areas the organizations need.

Vision statement examples include:

• Build an engaged, supportive and capable board.

• Establish effective and efficient policies and procedures for the board of directors to fulfill the purpose of the organization, ensuring fulfillment to the organization's fullest potential.

Goal statement examples include:

• Complete board recruiting plan policy, including board selection criteria, plan for vetting members and creation of board orientation packet.

• Increase board membership to 12 with diversity of skills and demographics.
  

Programming

Perhaps the most focus on strategic plans is about programming and communication for customers and stakeholders. Nonprofits are focused on refining programs to meet the needs of their community. They are also looking to expand the ways they reach and communicate with their stakeholders and customers.

Vision statement examples include:

• Deliver distance learning and virtual training and advising with a personal touch. (Create programming with deep consideration to how the instruction is led.)

• Develop community-centric programming.

• Create, communicate, and deliver information regarding programs throughout the county.

Goal statement examples include:

• Develop a marketing campaign to grow the program attendees to 20 in each offering.

• Develop a financial plan that supports program expansion by the end of fall.

• Develop program evaluation process.
  

2. Diversity, Equity, and Inclusion

Diversity, equity and inclusion are top priorities among the nonprofits, and I know that there is still a lot of work to be done. A nonprofit’s strategic plan is a great place to document the work that you are dedicating to doing to advance these important values so that we can truly make sustainable changes and embody them.

Diversity themes in the review of strategic plans focus on bringing together a team of diverse individuals with different identities, qualities and backgrounds. Equity themes have many nonprofits reviewing all of their organizations’ policies, procedures and processes to determine how to help all people achieve the same level of success.

Strategic plans are also noting the importance of diverse groups having their voices heard in important aspects of the nonprofit. Some nonprofits have set a goal of creating committees of community members to hear their stories and plan to share that information across their marketing channels.

Other focuses of diversity, equity and inclusion in strategic plans include nonprofits creating initiatives, task forces and committees as a way of acknowledging the importance of DEI work and their dedication to creating institutional change.

Vision statement examples include:

• Increase the inclusivity and diversity of our events.

• Define and set a diversity goal for the board.

• We will identify, build and embrace the core values of diversity, equity, and inclusion into all of our nonprofit’s operations, as well as model those values as we advance our mission.

Goal statements examples include:

• Review all policies, procedures, and processes to ensure compliance with our board-approved DEI statement.

• Create a community voice group to regularly gather community stories for sharing across our social and other marketing channels.

• Create and implement a DEI action plan, including an official statement and policy on DEI efforts within the organization.
  

3. Measurement and Analysis

The benefits of leveraging data are numerous so I’m thrilled that “measurement” and “analysis” were two words repeatedly used across focus areas and goals in my review of strategic plans. Measurements and data analysis can provide leaders with the information they need to make informed decisions about their nonprofits. Additional benefits include increased productivity and greater financial stability by discovering and cutting unnecessary costs.

A couple of the most common areas for measurement were fundraising, programming and performance.

Vision statement examples include:

• Implement a performance management system for driving and managing daily operations and for tracking overall organizational performance (that align with strategic direction.)

• Fundraising efforts will be more goal-oriented, such as identifying specific amounts to raise for scholarships, using donor database effectively and personally engaging with donors using list of needs, stats, impact statement and testimonials,

• Establish a small set of metrics to measure our impact.

Goal statement examples include:

• Address feedback from program participants to increase satisfaction ratings measurement of program leaders to eight out of 10.

• Document and reinforce values to increase positive ratings in culture survey results from our team.

• Focus on deepening relationships with donors to increase our direct donor fundraising by 15% in the next year.
  

4. Strategic Planning

Another interesting point to note is that many organizations have chosen to include strategic planning on their plan in some fashion. It’s a great way to emphasize the continued focus that nonprofits should have on the strategic planning process.

Nonprofits are using their strategic plans to set goals for their processes of creating and implementing their plans. Many note the ongoing cycle of strategic planning and include the need to create their next three- or five-year plans.

Other nonprofits are branching out and creating different strategic plans for other aspects of their organizations. For example, one nonprofit is expanding with regional centers, so it created a strategic plan for its “home base” as well as regional centers since they will have different goals.

Vision statement examples include:

• We will have institutionalized a process of regularly reviewing, revising and updating our plan in pursuit of our mission and vision.

• Installed a strategic planning process that is a part of our culture. It will be part of how we run the organization.

Goal statement examples include:

• Develop a strategy committee that is responsible for advising in the development and implementation of strategies consistent with our mission and strategic plan.

• Establish an annual strategic planning cycle, to include quarterly reviews. Send meeting invitations to team members for the year.

• Plan semi-annual strategic planning and development meetings with the entire staff and board.
  

Key Takeaway and Next Step

Some of these themes are consistent year to year. I regularly see topics, such as fund development, communication and marketing, and programs, included on strategic plans. This isn’t surprising because they are at the heart of most nonprofits. However, the actions and tactics for each topic may change and evolve over time.

The use of social media, for example, is increasingly being represented on strategic plans as part of a nonprofit’s broader communication and outreach plans. What went from “use social media” is now a more sophisticated and detailed action plan such as analyzing engagement on social media platforms, creating a posting calendar and using social media to increase outreach efforts to constituents for a specific event or program.

It’s important to both know the information and to use it. I encourage you to review these themes and compare and contrast it with your own nonprofit’s strategic plan. If this information is represented in your strategic plan, how should it evolve over time? If not, should it be? I can’t wait to see what you do next and the themes that emerge next year.

5 Tips to Turn Data Management into Meaningful Action

“Data is like garbage. You’d better know what you are going to do with it before you collect it.”

~ Mark Twain

Nonprofits in Mark Twain’s day had nowhere near the amount of data available to them that organizations do today, yet Twain’s thought is still relevant today. With so much information available, it’s relatively easy to collect a ton of data and have it pile up rather than use it to contribute to meaningful action.

Data science has advanced greatly, allowing nonprofits to harness it for good. However, using data to its fullest potential remains a challenge. Many nonprofits miss opportunities among their data and, instead, merely “collect” it.

If you’re ready to transform data management into meaningful action, the below tips are for you.

1. Personalize Your Interactions

Relationships are a core part of the success of any nonprofit. You need to build strong relationships with donors, stakeholders, and the community to attract the assistance and funding you need to meet your mission.

One thing data can help you to do better is personalize your interactions. You have access to a whole host of information about your donors and key stakeholders; you can use it for more impactful messaging.

For example, you might personalize messages based on the actions of donors, initiatives they have participated in, or even major events in their lives. Donor intelligence software can provide information such as real estate sales, inheritances, and affinity with a particular cause. You can find information on people’s interests and participation in various causes or activities. Any of this information can be a useful opener to a more personalized approach.

If you can personalize your interactions, they become much more meaningful and powerful messages. People tend to respond better when messages are relevant to them, and they can feel that your nonprofit is trying to get to know them better. 

2. Inform Your Strategic Plan

Data can also help inform your strategic plan.

For example, you may want to gather information on how your nonprofit is perceived through assessments or surveys. When you have a good idea of how your organization is perceived, you can use that information to help inform your long-term plans. In this particular example you may find that people have some misconceptions about your organization. A long-term vision should be to turn that perception around, drawing in more donors and volunteers.

Your strategic plan should be supported by your data collection. It should have your goals and action items to help you get there. Some examples of data that can inform your strategic plan include:

• Donor profiles.

• Information about potential untapped sources of funds.

• Information about how you are perceived vs. how you’d like to be perceived.

• Marketing campaign data. For example, what has been successful vs. unsuccessful?

• Market/economic information and trends.

• Data on the impact of your organization’s initiatives.

3. Identify Key Metrics

As a nonprofit leader it’s possible that you’ve been asked, “How do you measure the success of your organization?” That’s where “key metrics” come in. 

As we wrote about, an organization’s key metrics are three to five high-level measures that indicate your organization’s overall success. Examples of these metrics are:

• Tons of CO2 reduced

• Number of senior citizens participating

• Reduction in cancer rate

Some of your metrics may be “output” metrics like number of students served or number of legislators engaged. Other metrics may be “outcome” metrics like a percent increase in literacy or number of families that transition out of poverty. Whatever type of metric you use, they should provide an indicator of the overall success of your organization. 

The data that you collect across your organization can be used to help you identify what key metrics are the most relevant.

4. Continuously Improve Performance

Data helps nonprofits improve the monitoring and implementation of organizational efforts, helping drive a culture of constantly improving performance. Predictive analytics can help you accurately measure effectiveness so you can tailor future efforts.

For example, educational institutions can look at data on their student’s past performance or coursework, giving them a better idea of who may be in danger of dropping out before graduating.

Food banks can use predictive analytics to determine the need for food and how to find donors who could help meet that need. They can use this to stay on top of the need, so they don’t fall short at crucial times. All sorts of data can come into this equation; the state of the economy, downsizing at local companies, disaster events, and more.

The Nonprofit Council also states: “... it's important also to communicate what you are discovering and use those lessons to continuously improve performance."

"Whether your nonprofit engages in formal 'evaluation,' monitors progress towards specific goals, or uses feedback loops to learn what's working and what's not, each of these activities is a type of 'performance measurement.'"

5. Hone Your Marketing Campaigns

“Data are just summaries of thousands of stories—tell a few of those stories to help make the data meaningful.”

~ Dan Heath, bestselling author

This is a great point to wrap up our tips. Data is essential to determine meaningful action, but never forget the human element or the stories behind that data. In the case of nonprofit marketing, this is how you will create more impactful campaigns.

People connect with the human stories behind your data, for one thing. They want to know your overall results, along with the real tales of how you’ve made an impact.

You can also use data to better target your campaigns toward those most likely to respond to those stories. Data on people’s affinity with your cause and ability to donate will help you target those with a high likelihood of donating. This can be a cost savings for tight marketing budgets, getting better results through approaching fewer people.

Conclusion: Data Is Not Enough

Data is meaningless without taking action based on the knowledge you gain.

From a Mission Met perspective, simply having information is not enough. Without meaningful action, data is irrelevant. What actions will you take so your nonprofit can make the most impact?

A strategic plan is a way to link goals with long-term plans. Use the data you collect to determine where you are and where you want to be. The obstacles you face between those two should be your goals on a strategic plan.

How to Develop an Effective Tagline For Your Nonprofit

A tagline provides your nonprofit with a quick, efficient way to communicate your mission to the world.

The short phrase can give audiences an immediate idea of who you are and why they should support your mission. Taglines can help create a memorable association with your nonprofit in marketing materials, but many nonprofits haven’t developed one.

One of the challenges of this handy marketing tool is coming up with a compelling tagline. Nike’s “Just do it” or McDonald’s’ “I’m lovin’ it” sound so simple, but in reality, it usually takes a lot of thought to come up with something that will work.

Are you ready to develop a tagline for your nonprofit? This article looks at how to create a line that will be memorable and effective:

What Is a Tagline?

A tagline is a short phrase that captures the essence of your nonprofit. Taglines that become well-known (such as Nike’s) become brand identifiers that work across all communication channels.

Nonprofits, specifically, should look at taglines that communicate their mission to their audience. You need a succinct line that answers the question, “why should I care?”

Taglines often get mixed up with slogans; however, the two are distinct from one another. While a tagline is an overarching phrase to communicate the meaning of your organization, slogans are campaign-specific. A nonprofit running multiple campaigns might have multiple slogans.

Some examples of nonprofit taglines include:

• EarthJustice - “Because the Earth Needs a Good Lawyer”

• Common Cause - “Holding Power Accountable.”

• Oxfam - “The Future is Equal”

• American Diabetes Association - “Connected For Life”

There are different types of tagline styles, specifically among nonprofits. Descriptive (where the line succinctly sums up what they do), imperative (where they command the audience to do something), superlative (where the tagline uses language to indicate they are the biggest or best), interrogative (asking a question) or provocative (giving the audience pause for thought).

What Role Does a Tagline Play in Marketing?

In marketing, the goal of a tagline is to present a memorable description to the public of your organization’s purpose. Your aim should be to create a recognizable part of your nonprofit brand.

An effective tagline can:

• Set you apart from other, similar nonprofits

• Communicate your purpose clearly

• Strengthen the “brand identity” of your nonprofit

Importantly for nonprofits, effective taglines can also help you make an emotional connection with your audience. Doing this can help to motivate them in terms of donations or helping you in other ways.

Effective nonprofit taglines are clear, concise, and creative

Tips for Developing an Effective Tagline

What does it take to develop an effective tagline for a nonprofit? Here are a few tips for creating an impactful line:

#1. Take Some Time

Developing an excellent tagline isn’t likely to happen instantly; ensure you have the appropriate time and space to commit to the process. This time will help you develop something that will make a true impact.

One place to start could be to gather taglines that you like. Look at what other nonprofits, or even for-profit organizations, are doing. What stands out? What is it about those taglines that make an impact on you?

#2. Define the Heart of Your Organization

Your organization’s “heart” includes your mission, vision, and values. It details your purpose for being and why people should support you. If you don’t have clarity over those things, it will be difficult for you to communicate about your organization accurately in your tagline.

It can be helpful to list some descriptive words or concepts for your organization that relate to your mission and values. These can help you to start formulating ideas for a tagline.

#3. Write an Explanatory Paragraph

The “brain dump” approach can help you to narrow down to an impactful tagline. You could start by writing a paragraph that explains what your organization does. Write down everything that comes to mind, especially about what you do, why, and how that helps your cause.

#4. Know What Makes an Effective Tagline

Effective taglines tend to have a few key characteristics. Here are some descriptors:

• They are succinct and memorable

• They engage the reader, for example, by emphasizing how they help you to move your mission forward.

• They communicate a benefit to the reader and the cause you support. It’s not about you; it’s about them.

• They help to distinguish your organization from others.

• They reflect your organization’s goals.

• They capture your distinct voice or personality.

• They’re catchy and consistent with your overall branding.

• They’re long-lasting. Your tagline isn’t capturing a moment in your organization; if you want it remembered, you need something that will make sense long-term.

#5. Narrow Your Paragraph to a Line

You have a descriptive paragraph, some tagline examples, and a few ideas about what makes a tagline effective; now is the time to narrow down what you have into one line. It’s okay if you need to come up with a few examples; most organizations like to be able to vote on a few choices, anyway.

Consider aspects such as:

• Injecting an emotional hook. If you can stir an emotion that helps to communicate a benefit, this helps to draw people in.

• How to communicate that emotion with clarity and creativity. Nike managed it in three words, but shorter isn’t always better, especially if you end up sounding too vague or generic. It’s okay to have a longer sentence.

Sometimes prompts or examples can help define the style of tagline you’d like. Here are some examples:

1. Referencing the problem that you solve. “Improving Life, One Breath at a Time.” (American Lung Society).

2. Answer the question of why you exist. “Because the Earth Needs a Good Lawyer.” (EarthJustice).

3. Share a vision of your organization. “Finding a Cure Now, So Our Daughters Won’t Have To.” (PA Breast Cancer Coalition).

4. State a core belief of your organization. “Ending Poverty Begins with Agriculture.” (Heifer Society).

5. Engaging the reader. “Give Them Your Voice.” (Girl Effect).

6. Use of alliteration. “The Art of Active Aging.” (EngAge).

7. Use of rhyme. “Give a Hoot, Don’t Pollute.” (USFS).

8. Use the rule of three (three descriptive words or concepts). “Big Sky. Big Land. Big History.” (Montana Historical Society).

#6. Test Your Taglines Out

Your taglines must appeal to donors and your team members. You should test them out to see what really resonates. Regular donors who know you well and your employees can help you to narrow down your choices, so your final iteration is the most impactful.

Sometimes you’ll need to go back and have another go, especially if your options fall flat. It’s okay to need time to tweak and polish your tagline until you end up with the culminating result.

Conclusion

Taglines are a useful yet often overlooked tool for a nonprofit’s branding. A tagline can help your organization position itself with clarity and memorability in the minds of your audience.

The most impactful taglines are clear, concise, and creative. They communicate the purpose of your organization and are consistent with how you otherwise talk about yourselves and your mission.

Coming up with a compelling tagline isn’t always easy, but the ideas presented here can help you narrow down to a few options. Test different iterations and tweak them until you achieve the best possible version of your tagline.

Follow This Simple Formula for Your Mission and Vision Statements

This article was originally posted on Nonprofit Pro.

Are you concerned that your mission or vision statements aren’t aligning with your organization? Or, maybe you don’t have clearly defined statements because you don’t know where to start?

Your nonprofit has its own identity, and it’s likely that you want to tell your whole story to your stakeholders. However, when nonprofits wrap everything that the organization is about into its mission and vision statements, a lot of the power and decision-making value is lost in these lofty and winding statements. 

It’s important to create statements that guide decision-making, inspire your team and attract stakeholders — all in a way that is easy to communicate and remember. 

This may seem like quite a feat, and perhaps you’ve been working on your statements for quite some time. However, be assured that there are no perfectly worded mission or vision statements. Don’t worry about perfection because you can always come back and do some wordsmithing. 

Defining Missions and Visions

Your mission and vision statements are your core guiding statements, and funders often require them to consider whether you’re a good match for their priorities. 

Based on years of learning from organizations, I’ve defined mission and vision statements as the following: 

• Mission Statement: One succinct and somewhat timeless sentence that states what your organization does and for whom 

• Vision Statement: One succinct, inspirational, and somewhat timeless sentence that describes what the world will look like when your organization succeeds at its mission

There are two things to note about how your statements function. Firstly, you may have noticed that each statement is limited to one sentence. Simplifying your statements will make them easier to remember, focus your team and serve as a filter for decision-making. Secondly, your statements should have a cause-and-effect relationship. You want to be able to say that “If we succeed at our mission, then our vision is more likely to happen.” 

Here are some real-life examples:

Make-a-Wish

American Society for the Prevention of Cruelty to Animals (ASPCA)

Mission Statement*

We grant the wishes of children with life-threatening medical conditions.

To provide effective means for the prevention of cruelty to animals throughout the United States.

Vision Statement

That people everywhere will share the power of a wish.

That the United States is a humane community in which all animals are treated with respect and kindness.

*Words that are bold describe what the organization does, and words in italics describe the subjects/persons that are of focus.

Need More Detail?

Sometimes, a succinct mission statement can feel too limiting for even the most focused of organizations. In that instance, I recommend that you supplement your mission and vision with a brief bulleted list to provide a little more depth.

For example, here’s the mission and vision of Good Center Gracenter, which added an additional section to its mission statement to be featured in a few publications. It looks something like this: 

“To help women without resources break free from drug and alcohol addiction and create a hopeful future for themselves and others. 

We do this by offering: 

Transitional housing for women that provides a safe, supportive community incorporating the 12-Steps of Alcoholics Anonymous in order to promote peace and harmony in their lives.

• Recovery mentoring and the promotion of whole-person wellness.

• Paths to higher education, skill-building, and sustainable employment.

• Opportunities to practice the principles of restorative justice by taking responsibility for one’s actions and making amends that can lead to a transformation of people, relationships, and community.”

How to Do This Exercise With Your Team

What’s most important is how to put this into practice with your team.

Engaging your team members in your mission and vision statements is an excellent way to keep them involved with the process. They serve as auditors for the organization. At your next staff meeting, I recommend you ask, “What does our organization do? Who does our organization serve? And what will our community/world look like when our organization succeeds?”

Once you’ve gotten your staff’s input, appoint a small committee to draft your mission and vision statements. This is where you use the mission and vision formula I provided. 

Now that your committee has a solid draft, it’ll present it to the staff and board for feedback. Go through these steps as much as needed until you’ve finalized your mission and vision. Remember, each organization is unique, and its mission and vision statements will be just as unique and nuanced.

4 Key Fundraising Metrics Nonprofits Can Start Measuring Today (and One Main Thing to Remember)

Nonprofit leaders work hard to ensure success in their fundraising campaigns. They build relationships, strategize, execute, and then go back and measure effectiveness.

Measuring fundraising success happens when leaders can track key metrics related to their efforts. The more they gain an understanding of these numbers, the more they can set realistic, predictable goals for future campaigns.

That being said, metrics can get out of hand quickly. As helpful as they are for identifying what worked or what didn’t, the sheer number of potential measurements can quickly get overwhelming for any organization. For instance, Donor Search has outlined 26(!) different metrics.

While each one has its purpose, we know most nonprofit leaders have enough going on. Tracking a large quantity isn’t at the top of the priority list. That’s why we encourage leaders to start small, selecting one or two metrics to track and then building from there.

We’ve identified four key fundraising metrics your nonprofit can start measuring today. Below, we’ll define each metric, provide a formula for calculations, and leave you with an important reminder about fundraising.

Donor Lifetime Value

The Donor Lifetime Value (DLTV) gives you a strong idea of how much each donor will spend from their first donation to their last. It’s similar to “customer lifetime value,” a metric that for-profit organizations use to predict how much earnings can be expected for an average customer.” Nonprofits can use the number to get the same kind of estimations about their donors.

Calculating your DLTV requires a few additional numbers:

• Average donor lifespan (how long a donor contributes to your organization)

• Average donation amount (this tool can be helpful)

• Average donation frequency

The keyword for all these is average. Most nonprofits have quite a range of donors, but the point of this metric is to have a predictable number for future estimations. Once you have identified these averages, plug them into the following formula:

Average Lifespan x Average Donation Amount x Average Donation Frequency = DLTV.

Feeling too abstract? We’ll use some simple, round numbers to illustrate the formula.

Let’s say you have an average donor lifespan of 5 years, an average donation amount of $1,000, and an average frequency of donation once per year, you can expect your DLTV to be $5,000. That’s how much, on average, a donor will contribute before transitioning out of the organization.

Having this number helps you estimate how many donors you need to attract to reach your fundraising goal. Following the example above, if the organization had a goal of $120,000, they can reasonably predict that they need to bring in 24 extra donors to hit their target.

Donor Retention Rate

Not every donor you bring in over a calendar year will continue giving. Donor retention helps you measure the number of donors who continue supporting your organization year after year, so the metric should be calculated on an annual basis.

Here’s how to calculate donor retention:

• identify the number of donors who gave last year.

• Cross reference that list with those who gave this year to find the retained donors.

• Find the percentage with the following formula.

(Retained donors ÷ Total donors in the previous year) x 100 = Donor Retention Rate

If you had 50 total donors last year, and 20 of them continued to give to your organization this year, you’d have a donor retention rate of 40%.

Having your donor retention rate can give your organization insight into the success of your communication channels, donor recognition programs, and what types of donations are best to target in the future.

As you continue to foster valuable relationships with your donors, you will likely see your retention rate grow, and with that growth comes a reduction of donor acquisition costs. It costs less to retain donors than it does to find new ones.

Cost Per Dollar Raised (CPDR)

CPDR is similar to Fundraising ROI, but it measures the number from the opposite end.

The Donor Search article explains that Fundraising ROI measures “how much you earned per dollar spent” while CPDR “tells you how much spent per dollar earned.”

Each metric, while similar in scope, can help nonprofits in different ways depending on their unique goals: “If cost-cutting is a priority, nonprofits would likely be more interested in CPDR. If strategic planning for future fundraising efforts is the focus, fundraising ROI would be preferred.”

Here’s how you calculate your CPDR:

Money Spent on Fundraising ÷ Money Earned through Fundraising = CPDR

General Numbers to Operate By for CPDR

Charity Watch elaborates on CPDR with a complex rating system based on the cost to raise $100, giving organizations a percentage to work with.

Organizations are considered “Good” when they spend $27 to raise $100 which is equal to .27 CPDR. Anything up to $40 spent per $100 raised (.40 CPDR) is considered “satisfactory,” according to the chart.

These numbers, again, are merely figures to start with, and organizations should consider their unique circumstances when establishing their own benchmarks.

Pledge Fulfillment Percentage

A final key metric to consider is Pledge Fulfillment Percentage (PFP).

According to Donor Search, pledges are “funds promised to be paid to your nonprofit over a specific period of time.” Calculating your PFP helps you measure how many of these promised pledges actually come through.

Having this percentage will help your team immensely when it comes to financial planning and stability. Pledges typically get counted as cash in annual budgets, so when those pledges aren’t fulfilled, your organization can potentially go over budget.

Additionally, your pledge fulfillment percentage can give insight into your pledge-acquisition strategy. If you discover that few pledges actually follow through, you can adjust your planning moving forward to reduce the amount of budgetary mistakes.

You can calculate your pledge fulfillment percentage with this simple formula:

(Total pledges fulfilled ÷ total pledges promised) x 100 = Pledge Fulfillment Percentage.

The Main Thing to Remember When Measuring Nonprofit Fundraising Metrics

Each of these metrics will help you track your fundraising success, but measurements are not the most important part of fundraising. There’s another, more critical aspect to focus on: Establishing strong relationships with your donors.

Neglecting relationships is one the biggest mistakes nonprofits can make when fundraising. As you get caught up in the world of metrics and measurements, it can be easy to forget about the people behind the donations.

Here are simple ways to foster good relationships with your donors:

• Provide them with updates about your organization

• Find ways to keep them involved and invested

• Show gratitude and appreciation with handwritten notes and special events

• Keep communication open

Further developing the relationship between your organization and your donors will go a long way for future fundraising campaigns. You can measure success with metrics, but you need to build relationships to help you get and keep donors over time.

Seven Practices to Better Engage Your Nonprofit Staff

A nonprofit employee is a valuable team member. They are people who care, not just about their jobs, but about the mission they’ve invested in, their community, and the role they play in making things better. The most successful nonprofits take care of their people by cultivating employee engagement.

An engaged nonprofit staff can bring positive change to the whole organization by lowering turnover rates and increasing employee involvement in the community. A recent Opportunity Knocks report explains that engaged employees are “typically more satisfied, more productive, and less likely to leave the employer to seek other employment.”

Realizing these benefits requires a plan for engagement. That’s why we’ve outlined seven of the best practices to better engage your nonprofit staff.

1. Conduct a Thorough Staff Onboarding Process

A more engaged onboarding process will help new hires get through the early days of the job as they get more acquainted with the organization.

Mission Box, an organization that focuses on communication and collaboration, breaks the onboarding process into four categories: before the first day, during the first day, the first week, and the first month and beyond. Each category comes with its own set of responsibilities and checkpoints that engage the employee while also moving the process along smoothly. Here are examples from Mission Box:

• Send all paperwork to the employee prior to their start date so that their first time in the office can be dedicated to more engaging, personal work.

• Have their workspace cleaned and ready for them by their first day (assuming, of course, that they will work in-person).

• A working lunch or welcome breakfast on day one helps introduce the new hire to the staff and key leaders. This can even be done virtually.

• At the end of the first week, assign a more seasoned “buddy” on staff that can answer any questions or help guide them along the way.

• By the end of the first month, ensure employees know the staff, their own role, and any training or development programs.

• Check in after three months, once the employee has had enough time to get settled.

Executive directors should monitor and evaluate the onboarding process to make sure it meets its expected goals. Recent additions to the staff and their supervisors can provide feedback on the process, pointing out what has worked and what hasn’t.

2. Create a Staff Recognition Program

Staff recognition is critical for keeping great people within an organization. Employees who don’t feel recognized are twice as likely to look for new jobs, and over a third of employees who feel unrecognized leave their jobs within a year.

Occasional, impromptu recognitions are a great place to start, but they can often slip through the cracks. Organizations find more success when they implement a specific recognition program to keep appreciation a priority.

The program can consist of simple, low-budget practices. No one on the team is expecting a parade thrown in their honor. They just want to know that the organization recognizes their work. Here are some easily implementable ideas:

• Personalized thank you letters from supervisors

• Monthly email shoutouts in an internal newsletter

• A dedicated time in meetings for kudos and recognition

Organizations can also push themselves beyond these simple concepts and really let their creativity shine. LinkedIn recently highlighted a few unique ideas, including a recognition wall where peers could honor one another and video messages from board members.

Red Velvet Events got particularly unique by giving away a red-haired troll doll every month to an outstanding employee. It became a trophy-like piece around the office that team members started aspiring for. Whatever recognition program your nonprofit implements, making it personal and specific to your organization’s staff will help it succeed.

3. Discuss Values Monthly

Many staff members join nonprofits because they care about the values of the organization. As they do their job, they want to see how their work contributes to those values.

Other industries have already caught onto this. For-profit companies found that linking recognition programs with the core values is a great way to recognize effort and build a stronger bond with the organization.

According to one survey, 88% of organizations that tied employee recognition to core values said their programs helped instill and reinforce those values, compared to 57% among organizations that did not have that linkage.

Additionally, 80% of organizations that linked recognition and values said the programs helped maintain a strong employer brand, compared to just 49% without those ties.

Nonprofit organizations can follow the lead of these companies to promote employee engagement. Monthly staff meetings can be a great place to incorporate this. There, the team can easily highlight how others are living out the organization's values.

There are a number of other ways to link recognition programs with core values, too. Some organizations require a person nominating an employee for recognition to cite examples of how the person fulfilled the organization's values. Others might highlight a specific value each month and reward employees whose work especially reflects that value. Some also tie their organization's values into a formal performance review process. Any of these methods will work as long as employees feel the nonprofit recognizes their efforts to live out the core values.

Read our blog article on values if you’d like to learn more about how to create and implement them at your nonprofit.

4. Consistently Strengthen Compensation and Benefits

Getting compensation and benefits correct is one of the most critical elements to staff engagement. Organizations looking to get ahead in this area can regularly evaluate their compensation plans and compare them to other, similar organizations.

Here are resources to find out what compensation ranges may apply to your organization:

• Candid’s 2021 Nonprofit Compensation Report

• Nonprofit Compensation Associate’s’ 2021 Survey

• The National Council of Nonprofits Compensation article

Organizations can also consider how compensation extends beyond salaries. Offering other perks like flexible work hours, access to professional training programs, extended paid time off, and other creative solutions can make employees feel engaged, even if the money is slightly less. None of these will completely replace a competitive salary, but they may help balance areas when certain dollar figures can’t be reached.

5. Deliver a Professional Development Program

Investing in a professional development program will equip your organization’s staff with the necessary resources to grow in their roles and improve their skills. The organization will reap the benefits of more specialized staff members.

Some popular nonprofit professional development opportunities include:

• Free virtual trainings

• Lunch and learns

• Apprenticeship and shadowing opportunities with supervisors

• Formal courses or certificate programs

• Management opportunities with junior staff

The Nonprofit Leadership Alliance provides many other ideas to develop your professional development program.

6. Engage the Staff in Strategic Planning

The Opportunities Knocks report referenced earlier shows that employee participation in decision-making activities positively affects employee engagement. Employees feel encouraged that their input matters to the organization and see themselves as important contributors to success. Since strategic planning is so essential to any organization’s success, strategic planning is a great place to engage your employees.

Involving staff in regular strategic planning initiatives will show employees that their input matters to the organization at a high level, which can in turn make them more connected to the mission.

You can engage your staff in the organizational assessment, at a planning retreat, and in the ongoing execution of the plan. The Opportunity Knocks report references a few additional ways to enhance engagement in the planning process, including:

• Cultivating a culture of creativity and innovation

• Being transparent

• Looking for and addressing areas of disengagement

7. Implement a Real-time Performance Management Process

Performance management plays a crucial role in employee engagement. Receiving feedback, both positive and constructive, lets staff know their efforts are seen, and it gives them insight into how they’re doing on the job.

Traditionally, performance evaluations happen on a scheduled basis, which can create extra work, especially for executive directors who are already overwhelmed. That’s why real-time performance management has recently become a popular trend in nonprofits.

Real-time performance management is all about establishing, monitoring, and evaluating specific success criteria on an ongoing basis. The key is to select specific, measurable metrics that align with the organization's goals.

According to Bloomerang, researchers often use the example of losing weight to illustrate this concept with calorie counts acting as the metric and weight loss as the overall goal. When the dieter decides to go out to eat, having clear, measurable metrics in front of them (the calorie count) will affect their order. Their theoretical weightloss supervisor could then ask about their calorie intake and see whether it aligns with the overall goal of losing weight.

Nonprofit leaders can set and measure these kinds of accessible and reliable metrics. The specific data will help staff identify and set measurable goals, provide clarity, and increase engagement.

Closing Thoughts

Improving employee engagement can lead to other positive changes in your organization. More engaged employees tend to stay with the nonprofit longer, work with greater productivity, and remain loyal to the organization’s mission.

Implementing these seven practices will help you better engage your staff and empower your workers and organization as a whole.

How a Co-Champion Can Transform Your Strategic Planning Effectiveness: From Eric Ryan's Upcoming Book

I’m thrilled to tell you that later this year I’ll publish my upcoming book, Mission Met: Proven Strategic Planning Guidance to Help You Build a Financially-Secure and Impactful Nonprofit. The book will provide you with a suite of practical strategic planning practices that will help you and your team better execute your strategic plan. 

This blog post, about the power of co-champions in the planning process, represents the second article in a five-article series where I’ll share a brief preview of some of the guidance that I provide in the book. 

The Benefit of a Fitness Partner

Imagine that it is 5:30 AM on a Friday morning. Your alarm goes off to get you up for an early morning jog. It’s cold outside, you’re tired from a long week, and you end up turning the alarm off and going back to sleep. In other words, the short-term discomfort of an early-morning rise got in the way of your ultimate desire to be physically fit. 

Now imagine a slightly different scenario. The setting is the same, but this time you’re supposed to meet your jogging partner, Wendy, at 5:45 on the corner a block away to run together. In this case, you get out of bed, put your running gear on, and fulfill your commitment to Wendy. As usual, Wendy is on time, and the two of you laugh about wanting to go back to sleep but not wanting to let each other down. 

After your run, you feel good about yourself, your friendship with Wendy, and have more energy for the day ahead. 

The difference between these two scenarios is obvious: Wendy’s accountability and partnership was what propelled you to act.

Now, let’s create a similar set of scenarios regarding strategic planning. 

The Benefit of a Strategic Planning Co-Champion

It’s 9 AM on a Friday morning, and you have an important grant application due by 5 PM. At 9:30 AM you have a one-hour block on your calendar to work on your organization’s strategic plan. It’s been a long week and you haven’t been able to focus on the grant as much as you’d like. You decide to blow off your strategic planning time and work on your grant instead. You don’t end up rescheduling your strategic planning work, and as a result, your plan doesn’t get the attention it needs. 

Now imagine a slightly different scenario. The setting is the same, but this time during your 9:30 block you’re scheduled to review the plan with your administrative assistant, Maurice. You want to set a good example, and despite the pressure you feel from the grant deadline, you maintain your commitment to meet with him. 

After the two of you meet, you feel good about your leadership and you’re reminded, yet again, about the value of regularly reviewing and measuring progress on your organization’s plan. Plus, you ended up getting Maurice to help you with the grant application and you easily beat the 5 PM deadline. 

Like the jogging scenario, having a person who serves as an accountability partner made all the difference. 

In the world of strategic planning, we call this partner a “co-champion”. 

Over the years, I have become a huge fan of the co-champion model. Having a co-champion significantly increases accountability to the process, improves results, and, frankly, just makes planning a lot more enjoyable. 

Employing this one practice significantly increases the odds that your planning process will be well-executed.

In a recent conversation with Laura Anderson, an expert in co-leadership models, she agreed, saying, “We all have unique individual strengths, but even the best leaders are still a single human. Having an effective pair—somebody who complements you and adds to or multiplies your value because your collaboration is so effective—is when you start to see so much opportunity.”

the MVP of the Planning Process

I’ve seen many people effectively serve as a co-champion with the executive director: the board chair, programs officer, development director, etc. 

That said, the most successful co-champions have often been administrative assistants. In this model, the executive director keeps an eye on the big picture, while the assistant focuses on the mechanics of measuring and tracking the plan. Further, administrative assistants often feel a strong sense of pride in being called upon for such an important organizational role. They take their responsibility seriously and the organization benefits as a result. 

In nearly all cases where I’ve seen an administrative assistant play the co-champion role, they evolved to be the MVP of the planning process. 

Sometimes I’ll observe executive directors who are hesitant to select an assistant as a co-champion out of fear of setting them up for failure. This can be a missed opportunity. Instead, use the co-champion role as a “vote of confidence” that empowers the assistant to develop their leadership. Further, this assignment serves as a great weather balloon to predict your assistant’s potential for future leadership.

Simplicity Helps Your Team Take Action

One of my favorite articles that I’ve shared with our customers over the years is Dan and Chip Heath’s piece in Fast Company called “Analysis of Paralysis.” 

The two basic points of their article are:

1. Too many choices can paralyze you, and

2. Simplicity helps you take action.

Although this seems intuitive, the Heaths back it up with some interesting research:

(Researchers) gave doctors the medical history of a 67-year-old man who’d been suffering chronic hip pain from osteoarthritis. He’d been given drugs to treat his pain, but they had been ineffective, so there was only one viable option: hip-replacement surgery, which would involve a long and painful recovery. Then a final check with the pharmacy uncovered one medication that hadn’t been tried. Would the doctors like to give the drug a shot? 47% of doctors chose to try the medication in a final attempt to keep the patient from going under the knife.

Another group of doctors saw the same facts, except they were told that the pharmacy had discovered two medications that hadn’t been tried. If you were the patient with the bum hip, you’d be thrilled -- two nonsurgical options are better than one. But when the doctors were presented with two nonsurgical options, only 28% chose to try either one.

What happened here is decision paralysis. More options, even good ones, can freeze us, leading us to stick with the ‘default’ plan, which in this case was slicing open someone’s hip. This clearly is not rational behavior, but it is human behavior. Similar tests with different groups have revealed consistent results.

Over the years at Mission Met, we’ve seen these same types of results as it relates to strategic planning. Plans that are long and complex tend to get shelved. Why? Because, just like the doctors, the people responsible for executing the plans are super busy. For them, it’s much easier to blow off a complex plan than trying to sit down and work through all of the plan’s details and decisions.

The lesson? Simplicity will help your team take action.

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At Mission Met, simplicity is a cornerstone of all of our programs/services. Specifically, our START strategic planning course provides organizations with a practical strategic plan that they can successfully achieve. Learn more about how START can transform your organization.

Choosing a Nonprofit Strategic Planning Consultant: 7 Factors You Should Consider

If you and your nonprofit are considering creating a strategic plan, you may be wondering whether or not to bring on a strategic planning consultant. The role of a nonprofit strategic planning consultant is to help analyze your organization's position, discover new strategies and improvements for success, and assist with implementing best operational practices.

Selecting an individual or a team who can serve your organization in this way is incredibly advantageous, but there are several factors you should consider before you do so. Let's get started.

Understand Their Knowledge and Expertise Level

Strategic planning consultants are helpful to your organization because of their wealth of knowledge and experience. They've worked with other nonprofit organizations in the past and can help lead your team through the strategic planning process.

However, before choosing just any consultant, make sure you ask the right questions about their expertise. For example, they may be able to help you with your strategy but not be able to effectively assist with process definition and implementation. Further, you’ll want to make sure that they have experience working with organizations like yours; strategic planning at a large nonprofit is significantly different than at a small organization. Bottom line, you'll want to make sure you're choosing someone that has a strong understanding of the unique needs of your nonprofit.

Do They Have Testimonials?

The world runs on reviews, testimonials, and client success stories. Strategic planning consultants are not exempt from this rule. Check to see if your consultant has reviews, testimonials, and information on LinkedIn, Google, or other platforms. Look at them as an investment of your time, money, and resources. It's vital to find the right fit.

If reviews or testimonials are not readily available online, don’t hesitate to request your candidate consultants to provide you with some to review. This is a common request and shouldn't be avoided when vetting the relevancy and overall skillsets of the consultants you are reviewing.

Do They Have a Methodology or Process They Adhere To?

Each nonprofit strategic planning consultant will operate differently. As the saying goes, “if you gather 10 consultants in a room, you’ll get 11 opinions on what to do.” Taking this into consideration, during your selection process, ask prospective candidates what their methodology or approach is for getting your organization from Point A to Point B. Hopefully, they'll be able to provide you with some type of project outline or roadmap that can demonstrate a clear illustration of their process.

After this is provided, be sure to ask questions! If you're worried that part of their process won't mesh with structures your organization currently has in place, don't be afraid to voice that. Your nonprofit consultant should be committed to working with your organization and finding new, innovative ways to accomplish the goals you have.

How Well Do They Communicate?

Because your planning consultant will be guiding your organization through the process that will lead it to success, they should have strong communication and facilitation skills. Having good verbal communication skills allows them to collaborate with others and build a good rapport. Facilitation skills are also essential in this context because it helps to identify personality types and comfort levels within the group that they're working with. This enables them to adjust the discussion flow to ensure that all perspectives are heard.

Good communicators and facilitators know how to empower the clients they work with to drive certain elements themselves and when they should step into the picture. This balanced approach to leadership comes with time and experience and is one of the signs of a great nonprofit strategic planning consultant. Don’t feel like you need to compromise in this area. While finding the right nonprofit consultant who truly understands your unique needs and understands your vision takes time, you’ll be in a much better position if you don’t settle for a partnership lacking in clear communication.

Can They Work Within Your Budget?

Not all strategic planning consultants are the right fit for your budget. Don't be afraid to shop around.

Your strategic planning consultant should be given a pretty good picture of the budget you're looking to work within and the scope of the work being done. This will help them to better understand your organization's financial position and the level of commitment they will need to give.

Defining and discussing your budget openly with your consultant is a great way to help them draft a realistic vision of what you can expect out of the partnership, along with relevant timelines, milestones, and organizational objectives they'll be looking to help you achieve.

Are They a Long-Term Partner?

Nonprofit strategic planning consultants often have experience working with a variety of organizational types. This makes them great objective third parties who can bring fresh perspectives and approaches into your organization. Because consultants have established methods for how to create strategic plans, the process often moves much faster than if your nonprofit starts from scratch.

While this may sound great, you'll want to be clear on their level of engagement when deciding if they're the right fit for your organization. Are they looking to give you and your team some direction and then walk away? Or will they be there to support your organization down the road and help to implement new processes?

Get A FREE eBook on Selecting the right nonprofit strategic planning consultant for your organization

For most organizations, especially smaller nonprofits or those just getting on their feet, sourcing a long-term partner is the ideal scenario. In this case, it's important that you factor your strategic planning consultant's commitment levels into your selection criteria. This will ensure you find the right fit for your strategic planning and execution needs.

What is Your Commitment Level?

Before bringing on a planning consultant, reflect on your own level of commitment. While a consultant is there to guide you, it's important you're ready to be actively engaged. Consultants are there to keep everyone on track, but your organization should be committed to making the partnership work.

• Is our executive director committed to the strategic planning process?

• Will our board of directors and other key stakeholders be supportive of this effort?

• Are we willing to make the time for the meetings required to not only create the plan, but also implement it over the next year and beyond?

• Are we willing to regularly track and measure progress on our plan?

These questions are just a few considerations, but it is worth knowing that creating a valued partnership involves effort on both sides. Planning consultants of any type are not a "set it and forget it" solution to strengthening your nonprofit. If you want to impact change within your organization then everyone involved must be ready to play an active role.

Final Thoughts

Whether you've just started your search for a nonprofit strategic planning consultant or have already shortlisted potential candidates, due diligence is key to realizing value. By understanding these seven factors discussed, you'll be sure to find a long-term partner who is the right fit for your organization now and in the future.

A Simple Research-based Tip for Setting More Effective Goals

For several years we’ve told our clients that there are two types of goals: process goals and results goals. For example, a process goal may be "to write one grant per month." The correlating results goal might be "to acquire $100K in new funding this year."

So, for these goals, the question is: "Which goal will help us get the result we want -- the $100K?" The correct answer is "it depends.”

However, research highlighted by Chip and Dan Heath in their book, Switch, indicates that process goals (the research calls them behavioral goals) may have nearly three times the effectiveness of results goals in helping you get what you want! Here's what the Heaths say on page 62 of their book:

In a pioneering study of organizational change, described in the book The Critical Path to Corporate Renewal, researchers divided the change efforts they'd studied into three groups: the most successful (the top third), the average (the middle third), and the least successful (the bottom third). They found that, across the spectrum, almost everyone set goals: 89 percent of the top third and 86 percent of the bottom third. A typical goal might be to improve inventory turns by 50 percent. But the more successful change transformations were more likely to set behavioral goals: 89 percent of the top third versus only 33 percent of the bottom third. For instance, a behavioral goal might be that project teams would meet once a week and each team would include at least one representative of every functional area. Until you can ladder your way down from a change idea to a specific behavior, you’re not ready to lead a switch. For you visual learners, I've captured the main finding of their research in the graphic below:

What's the main tip for you?  Well, the next time you and your team are setting goals, be sure to consider incorporating process goals. You may end up getting better results!