Strategic Planning for Nonprofits That Makes Audits Easier
A two-page plan, quarterly reviews, and one clear owner per process
Strategic planning is more than goal-setting. It strengthens compliance and reduces audit stress. As Hannah Baldwin, Director of Client Advisory Services (CAS) at Smith Marion & Co., said, “Weak areas thrive in busy environments.” A simple plan with clear ownership stops tasks from slipping when workloads spike.
Why Strategic planning improves your audit
“Weak areas thrive in busy environments.” — Hannah Baldwin, Director of Client Advisory Services (CAS) at Smith Marion & Co.
A usable plan aligns mission, annual goals, and daily work. It assigns accountability to named people. That clarity lowers risk across procurement, assets, documentation, and reporting.
“Don’t let the audit come up on you.” — Hannah Baldwin
Keep the plan short: two pages
Long binders gather dust. A two-page plan is easy to use. The EOS Vision/Traction Organizer (V/TO) keeps vision and near-term priorities on two pages so teams can act on them week after week.
Use it to:
- State the mission and 1-year targets on one page.
- Set 90-day priorities (“rocks”) and measurables on the other.
- Link every quarterly goal to a compliance or control need.
Run quarterly reviews (2–4 hours) and cap goals at eight
Hannah recommends one annual planning day and quarterly check-ins of 2–4 hours. Keep no more than eight goals so the team can finish them. Assign one owner per goal to avoid dropped balls.
“People want to jump to the solve—identify the true issue first.” — Hannah Baldwin
In the meeting, review the last quarter, check the scorecard, confirm the plan still fits the mission, then set the next eight goals. Close with a clear recap of owners and dates.
What a “good” quarterly meeting looks like
- The team reviews last quarter’s goals and scorecard
- Conflicts surface without blame
- The group issues-lists, ranks, and solves the top three
- The facilitator recaps owners and dates
- Everyone rates the meeting 1–10 so you improve the process next time
Define two leadership seats: Visionary and Integrator
Ideas need guardrails. Hannah advises keeping Visionary and Integrator as separate seats. The Visionary brings ideas and culture. The Integrator checks those ideas against the plan, holds people accountable, and watches the numbers.
“They can’t be the same person.” — Hannah Baldwin
Treat procurement and contracting as year-round work
Procurement should not be a last-minute scramble:
“Do some sort of quoting or price comparison… save those quotes and comparisons… and how were they evaluated?” — Kendra Dockham, CPA
If you receive federal funds, align your policy to 2 CFR §200.320 and keep complete files: method used, quotes or proposals, evaluation criteria, and award basis (and note conflicts/recusals if any). The rule recognizes informal methods (micro-purchases/small), formal methods (sealed bids/proposals), and noncompetitive methods when allowed.
Keep a tight fixed-asset list and complete board minutes
Maintain a current fixed-asset schedule and inventory items on a routine cycle. Tie additions/disposals to approvals and support. Standardize board minutes with a simple template and file signed copies quickly. Good minutes are the official record and support key approvals that auditors test.
How to prioritize when everything feels urgent
Use a clear cascade:
- Long-term vision
- 3-year picture
- 1-year goals
- Next 90 days (≤8 goals, one owner each)
Pull quarterly goals from the 1-year list. If your mission shifts mid-year, Hannah recommends keeping the annual plan stable and adjusting quarterly goals so you do not finish work that no longer matters.
Board involvement: helpful, not heavy
Invite the board where it adds value without chilling staff candor. A practical approach is to include the board in the SWOT/DOS segment for input, then let staff handle sensitive issue-solving and bring the board a focused update afterward.
One-page checklist (print this)
- Build a two-page plan (V/TO) and fill each seat on the Accountability Chart with one name.
- Hold a quarterly review (2–4 hours). Set ≤8 90-day goals. Assign one owner per goal.
- Keep a living Issues List and use IDS on the top three items each quarter.
- Align procurement with 2 CFR §200.320 and keep complete support files.
- Maintain a fixed-asset register and perform routine inventories.
- Standardize board minutes and file signed copies.
Ready to make your next audit easier?
Ready to make your next audit easier? Smith Marion & Co. can help you build a two-page plan, run your first quarterly review, and tighten procurement, assets, and documentation. Book a consultation or explore our nonprofit services.
Frequently Asked Questions
1. How long should the quarterly meeting take?
Plan 2–4 hours, set ≤8 goals, and make one person the owner of each goal.
2. What counts as a valid procurement file under 2 CFR 200.320?
Keep your method (micro-purchase, simplified acquisition, sealed bids/proposals, or approved noncompetitive), the quotes or proposals, your evaluation criteria, and the final decision trail.
3. Can the board join the strategic planning session?
Yes, but fit it to your size and culture. Many teams invite board members to SWOT/DOS, then let staff handle sensitive issue-solving so employees speak freely.
4. Should we change the plan mid-year?
Usually no. Update quarterly goals if the mission shifts, but keep the annual plan stable so the team stays focused.
5. What belongs in board minutes to satisfy auditors?
Record motions, votes, actions, and next steps; file signed minutes and related documents in your records system.