VCG Governance Matters: Good Governance Guide

Strategic Planning

The board upholds the organization's mission, and can articulate a clear vision for its future and the values that will guide decisions and behavior. The board is integrally involved in setting strategic direction through strategic planning, organizational alignment and implementation.

Indicators of Good Governance

A strategic plan, with attainable goals, has been developed and approved by the board, with staff input and support.
The plan is a working document that is updated periodically to adjust for progress, changes in the environment, and critical opportunities.
The board receives regular progress reports from the chief executive relative to the implementation of the plan.
Board members can speak knowledgeably about program goals, outcomes, and client needs. When applicable, they have visited program sites and/or met clients.
Board members articulate a shared vision for the future of the organization and evaluate strategic choices in this light. Board members draw on their individual resources (time/talent/treasure) to support progress in achieving the vision.

Funders’ Questions For Nonprofits

Board Practices

Does the organization have a current strategic plan that charts program and operational directions for your organization and supports the organization's vision?

A plan has been developed and approved by the board -- or the board is currently involved in developing a strategic plan -- that supports the organization's mission and vision.

What was the extent of the board's involvement in the planning process?

The full board -- guided by a strategic planning committee of the board, and with the participation of staff -- was involved in the development of the plan including review of the mission statement, objectives, and priorities. The plan was developed for a 3 to 5 year period.

How does the board monitor progress on the plan?

Updates are provided to the board by management at regular intervals as appropriate for the organization's needs: at each board meeting, quarterly, semiannually, or annually.

Do board members have a clear understanding of the organization's mission, relative to the current competitive environment, and are key leaders able to articulate this mission?

The board has developed and can articulate a mission statement and a vision that distinguishes the organization's place in its field, with its desired impact on its constituents. The vision motivates staff and volunteers.

How does the board respond to changing circumstances?

The strategic plan is a working document that is updated periodically to adjust for progress in achieving goals and objectives; changes in the internal and external environments; and critical issues and opportunities that arise.

What specific action can funders take to encourage better governance in this area?

The funder can stress the importance of the board's primary role in setting strategic directions for the organization.
The funder can provide a capacity-building grant to support the strategic planning process.
The discussion about strategic planning can be followed up when the nonprofit presents a grant proposal or makes a renewal application.

Case Studies