Strategic planning for small charities: the complete guide
A strategic plan is a short document that says what your charity is trying to change, the few priorities that will get you there over the next three years, and how you will know it is working. For a small charity, a good one fits on one to five pages and takes six to ten weeks to write.
This guide is for CEOs, managers and board members of Australian charities with a small team or none at all. It covers what goes in a plan, who to involve, a step-by-step process, a one-page template, and how to keep the plan alive once it is approved.
In short:
- Start with purpose. Your plan must serve the charitable purpose in your governing document.
- Choose three to five priorities. More than that and nothing gets done.
- Tie every priority to a measure, an owner and a budget line.
- Review progress at every board meeting and refresh the plan every year.
What is a strategic plan?
A strategic plan is a set of choices about where your charity will focus its limited time and money. It sits between your purpose (why you exist) and your day-to-day work (what you do this week).
Most charities use three layers of planning:
| Layer | Question it answers | Typical timeframe | Who owns it |
|---|---|---|---|
| Purpose, mission and vision | Why do we exist and what change do we want to see? | 10+ years | Board |
| Strategic plan | Which few priorities matter most right now? | 3 years | Board, with the CEO |
| Operating plan and budget | What will we do this year, who does it, and what will it cost? | 12 months | CEO and staff |
What a strategic plan is not
- A list of everything you do. If every program appears as a priority, you have made no choices.
- A funding application. Funders read it, but it should describe your strategy, not mirror one grant's language.
- A document for the shelf. A plan that is not reviewed at board meetings is not guiding anything.
- Something only big charities need. A two-person charity has even less room for activity that doesn't serve its purpose.
Why small charities need a strategic plan
No Australian law requires a charity to have a strategic plan. But a plan is one of the simplest ways for a board to show it is meeting its existing obligations.
It helps your board meet the ACNC Governance Standards
The ACNC Governance Standards require registered charities to work towards their charitable purpose and be able to show this. Board members (Responsible People) must also act with reasonable care and diligence and ensure finances are managed responsibly.
The standards are principles, not precise rules, so each charity decides how to comply in a way that suits its size. A strategic plan, tracked at board meetings, is practical evidence that the board is steering the charity towards its purpose, not just reacting to events.
It makes funding easier to win and keep
Grant makers, foundations and major donors often ask for your strategic plan, or for answers drawn from it. A clear plan lets you:
- explain quickly how a grant fits your priorities
- say no to funding that would pull you off course
- reuse the same outcomes and measures across applications and acquittals
It focuses a small team
Small charities rarely fail from a lack of ideas. They struggle because too many good ideas compete for the same few people. A plan gives staff and volunteers permission to stop doing things that don't fit.
Who should be involved
The board owns the strategic plan and approves it. The CEO (or most senior staff member) usually drives the process and writes the drafts. Everyone else is consulted, not asked to co-write.
| Group | Role in planning | How to involve them |
|---|---|---|
| Board | Sets direction, makes final choices, approves the plan | A half-day planning workshop plus review of drafts |
| CEO or manager | Runs the process, analyses data, drafts the plan | Leads every step |
| Staff and key volunteers | Know what works on the ground | A short workshop or survey |
| People you serve | Know what they actually need | Interviews, a feedback session or existing survey data |
| Funders and partners | Know the wider landscape | A few 20-minute conversations |
In a volunteer-run charity, the board often does everything. If so, ask one board member to lead the process and keep the workshop focused on decisions.
Do you need a facilitator? Not always. An outside facilitator helps when the board is divided, the charity is in crisis, or the CEO needs to take part as a participant. Many skilled-volunteering programs and peak bodies can connect charities with pro bono facilitators.
How to write a strategic plan in seven steps
This process suits a charity with an annual income under about $3 million. Allow six to ten weeks from start to board approval.
Step 1: Agree the scope and timeline (week 1)
At a board meeting, agree on the plan's timeframe (three years is typical), who will lead, who will be consulted, and the date the board will approve it. Book the planning workshop now.
Step 2: Revisit your purpose (week 1–2)
Re-read the purpose clause in your constitution or rules. Your plan must sit within it. Then check whether your mission and vision statements still describe what you do. If they don't, fix them before going further.
Step 3: Gather evidence (weeks 2–4)
Collect what you already know before asking for opinions. Useful sources include:
- your last three years of financial statements and Annual Information Statements
- program data: how many people you served and what changed for them
- feedback from the people you serve, staff and volunteers
- funder priorities and any upcoming changes to government funding
- sector data, such as similar charities on the ACNC Charity Register
Step 4: Analyse where you stand (week 4)
Summarise the evidence in a two-page briefing for the board. A SWOT analysis (strengths, weaknesses, opportunities, threats) is a simple format. Be honest about weaknesses: they shape the plan as much as strengths.
Step 5: Hold the planning workshop (week 5)
Use a half-day workshop with the board and CEO to answer four questions:
- What change do we exist to create, and for whom?
- Where can we make the biggest difference in the next three years?
- What will we stop, start or do differently?
- What must be true about our money, people and systems for this to work?
Aim to leave with three to five agreed priorities. Write them as outcomes ("more young people complete our program"), not activities ("run more workshops").
Step 6: Draft, test and refine (weeks 6–8)
The CEO turns the workshop output into a draft using the template below. Share it with staff and a few trusted partners. Ask one question: "Is anything here unrealistic, or missing?"
Step 7: Approve and launch (weeks 9–10)
The board approves the final plan and minutes the decision. Then share it: a one-page version on your website, a short briefing for staff and volunteers, and a copy for key funders.
What to include: a one-page strategic plan template
A small charity's plan needs seven parts. Each can be a line or a short paragraph.
| Section | What to write | Example (fictional youth mentoring charity) |
|---|---|---|
| Purpose | Your charitable purpose, from your constitution | To advance the education of young people in regional Victoria |
| Vision | The world you want to see | Every young person in our region finishes school with a plan |
| Mission | What you do to get there | We match students in Years 9–12 with trained volunteer mentors |
| Values | Three to five principles that guide decisions | Young people lead; we show up; we measure what matters |
| Priorities (3–5) | The outcomes you will focus on for three years | 1. Double the number of students completing the program. 2. Reach two new towns. 3. Build a reserve of three months' costs |
| Measures | How you will know each priority is on track | Completion rate; number of towns; months of reserves |
| Enablers | What must change in money, people and systems | A volunteer coordinator role; a client database; a regular giving program |
Keep the full plan under five pages. Put supporting detail, such as the SWOT analysis and consultation findings, in an appendix or a separate board paper.
Common strategic planning mistakes
| Mistake | Why it hurts | What to do instead |
|---|---|---|
| Too many priorities | Effort spreads thin and nothing finishes | Cap it at five. Move the rest to a "not now" list |
| Priorities written as activities | You can't tell if they made a difference | Write outcomes, each with one measure |
| No link to the budget | The plan promises what the money can't fund | Build the first-year budget alongside the plan |
| Planning without data | Decisions rest on whoever speaks loudest | Gather evidence before the workshop (Step 3) |
| Ignoring the people you serve | The plan solves the board's problems, not theirs | Talk to at least a handful of clients or participants |
| Never reviewed | The plan is out of date within a year | Put it on every board agenda (see below) |
| Chasing funding | Grants steer the charity away from its purpose | Test each opportunity against your priorities |
Making the plan stick
A plan only works if it changes what people do each week. Four habits keep it alive.
- Turn it into an annual operating plan. List the actions for each priority this year, with an owner and a due date. See From strategy to action: writing an annual operating plan.
- Fund it. Every priority should appear in the budget. See How to build a charity budget your board will approve.
- Report on it at every board meeting. A one-page dashboard showing each priority as on track, at risk or off track is enough. See The board report: a dashboard every charity board should see.
- Refresh it every year. Hold a short review each year to check the priorities still hold. Do a full rewrite every three years, or sooner if something big changes, such as losing a major funder.
Also check your plan against your risk register. Each major risk should either be covered by a priority or deliberately accepted by the board. See Risk management for small charities.
Frequently asked questions
Is a strategic plan a legal requirement for Australian charities?
No. Neither the ACNC nor the ATO requires one. However, board members must act with care and diligence and ensure the charity works towards its purpose. A strategic plan is a practical way to show that. Some funders also make a current plan a condition of funding.
How long should a charity's strategic plan be?
One to five pages is enough for most small charities. Many publish a one-page summary and keep supporting analysis in a board paper.
How many years should a strategic plan cover?
Three years is the most common timeframe. It is long enough to achieve real change and short enough to stay relevant. Review it every year.
How much does strategic planning cost?
It can cost nothing beyond staff and board time. A paid external facilitator for a small charity typically adds a few thousand dollars, though pro bono support is often available.
What's the difference between a strategic plan and a business plan?
A strategic plan sets direction and priorities. A business plan goes deeper into how a specific service or enterprise will be funded and delivered. A charity starting a social enterprise may need both.
What's the difference between a strategic plan and a theory of change?
A theory of change explains how your activities lead to the change you want to see. A strategic plan decides which parts of that to focus on over the next three years. Writing a theory of change first makes planning easier. See How to write a theory of change.