Principles and Practices

for Nonprofit Excellence

Planning

Organizational planning sets the overall direction, activities and strategies a nonprofit employs to fulfill its mission. Nonprofits have a duty to engage in sound planning, define a clear vision for the future, and specify strategies, goals and objectives for plan implementation. Planning should incorporate input from constituents and should be intentional and ongoing to successfully position the organization to achieve its goals.

Mission

1) A nonprofit should have a written mission statement which is sufficiently specific to effectively guide the overall aims and activities of the organization.

2) The mission statement should be linked to the values of the organization and its vision for the future.

3) As part of ongoing planning, and with input provided by the organization’s constituents, the mission statement should be evaluated regularly by the board with regard to its relationship to the organization’s current activities.

Community Input

4) In planning for their activities, nonprofit organizations should be responsive to community needs and should solicit input from a variety of sources such as board, staff and community members and other constituents.

5) Nonprofits should consult with their counterparts to determine the need for services and the best use of community resources.

Strategic Plan

6) The board of directors should establish a rigorous process of setting clearly defined goals and objectives to accomplish the organization’s mission. This plan should be reviewed annually and a new plan should be developed and adopted at least every five years.

7) Goals and objectives should be reasonably attainable given staffing, resources, constituents and the number of people being served.

8) A nonprofit organization should periodically conduct an environmental scan that includes an evaluation of strengths, weaknesses, opportunities and threats as part of strategic planning.

Operational Plan

9) A nonprofit organization should annually create a written operational plan which specifies implementation of its activities.

10) The operational plan should include goals and objectives that are set by the organization in order to positively benefit individuals and society.

11) The operational plan should clearly define specific program, financial, personnel and evaluation activities; delineate timelines; and assign specific responsibility for implementation.

12) The operational plan should be a useful management tool for evaluating activities and outcomes and should be tied to an approved budget.

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Principles and Practices

Click on the links below to jump to the different sections of The Principles and Practices for Nonprofit Excellence.

• Introduction
• The Principles
• Role in Society

• Governance

• Planning

• Transparency and Accountability

• Fundraising

• Financial Management

• Human Resources

• Civic Engagement and Public Policy

• Strategic Alliances
• Evaluation
• Advice for Users
• The Origins of the Principles and Practices

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Principles and Practices for Nonprofit Excellence