60. Six expenses to budget for in your nonprofit strategic planning process
Your next strategic plan is due soon, and you are already thinking about the investment it will take to do it well.
Crafting a strategic plan is an exciting opportunity to set a fresh direction, but budgeting smartly will make all the difference.
Here are some key cost categories to consider as you prepare:
1. Consultant, Facilitator, or DIY Program Fees
This will likely be your biggest out-of-pocket expense for the strategic planning process. Bringing in an experienced nonprofit consultant or facilitator can offer unique expertise, neutrality, and capacity to guide your team through the process. This often runs in tens of thousands of dollars. Be sure to include any additional costs a consultant might claim, such as travel reimbursements.
If you have the interest and capacity to develop it in-house, a DIY program like ours can be a great alternative, offering structured support at a fraction of consulting fees, starting as low as $3,000.
From a cash perspective, be sure to consider any sales taxes that might be charged upfront by the providers, even if it can be claimed back from the government later.
2. Stakeholder Engagement and Research Costs
Nonprofit strategic planning is not just about creating a fancy document. It is about listening to and co-creating with your stakeholders—team members, board members, community partners, and those you serve.
Take a moment to reflect on the types of stakeholder engagements you will conduct (e.g., online surveys, 1-1 interviews, focus groups, strategy sessions). Then, budget accordingly for things like survey incentives, venue costs and refreshments for in-person sessions, printing costs, travel and accommodation for out-of-town participants, and honorariums to thank your team and participants.
These costs can range from a few hundred dollars (if you are using your own facility and there is no travel) to thousands of dollars if you rent external venues and invite out-of-town stakeholders. To save on logistics costs, consider using remote tools, but be mindful that this may require some tech investments.
Also, think about whether any key sector, economic, or academic research reports could support your process. Some of these reports may require a recurring subscription or one-time payment, so setting aside a few hundred dollars for this could be worthwhile.
3. Tech Costs
Technology is a valuable asset when planning your process, getting input, collaborating with stakeholders, and keeping everything organized and on track.
If you are leveraging a consultant, you may not need to invest heavily in tech. However, if you are using a DIY strategic planning process, evaluate your current tech stack and what you might need for a smooth process. This could include project management tools, survey collection tools, AI tools for data analysis, and collaboration tools.
Think about this from your stakeholders' perspective. Tools that work well within a small team may not be ideal for large stakeholder engagements. Consider upgrading your subscriptions or using more effective tools temporarily throughout the process. It might cost hundreds of dollars over the course of the project, but it will save time and reduce stress.
4. Communications and Document Design Fees
Clear, professional-looking documents make it easier for staff, board members, and supporters to understand your goals and their roles.
Design support for your final strategic plan and even interim documents like “what we heard” infographics and session templates can be a smart investment.
If you have a strong communications team in-house, the out-of-pocket costs may be minimal. However, if not, partnering with an external graphic designer could cost hundreds to thousands of dollars, depending on their location and expertise.
Alternatively, affordable solutions like pre-designed templates on platforms such as Canva and Etsy are available. You can even grab a free one here. Remember, well-designed materials not only make a strong impression but also help everyone feel engaged in the plan.
5. Opportunity Costs of Staff Time
Strategic planning requires a significant commitment from your team, often pulling key staff away from their regular duties.
While this opportunity cost is not an out-of-pocket expense, it is still important to quantify the time and payroll investment used in the process, especially if you are leveraging a DIY process. Consider whether providing a bonus or raise for those leading the DIY process is appropriate.
6. Contingency Fund
Strategic planning can bring up unexpected needs—such as additional research, extra stakeholder sessions, or last-minute tech upgrades. Setting aside a contingency fund, typically 5-10% of your total budget, provides flexibility to handle these unplanned costs without stress. This small reserve ensures your planning process stays on track even if surprises arise.
Whether you are looking to leverage an external consultant or develop your nonprofit strategic plan in-house, there is an investment to be made.
By reflecting on the potential costs and your available budget, you can make crucial decisions on what is a “nice to have” vs. a “must-have,” ensuring your nonprofit’s strategic planning process is well-resourced and ready to create lasting impact.
Considering a DIY approach? Check out our DIY Strategic Plan program, which offers step-by-step guidance to design and implement your nonprofit strategic plan like a pro. Get up to 12 months of support and develop a plan that works for your team.
