Why should we bother with market analysis before writing a strategic plan? Our nonprofit is a mission-driven, unique organization. There’s no other nonprofit that is anything like us.
A 2005 survey of nonprofits in the San Francisco Bay Area found that close to half of the operating charities were less than 10 years old Doing a market analysis ensures that you use a systematic process to learn about recent changes in your organization’s external environment. It’s important for three reasons:
Donors, potential volunteers, and clients see the entire range of nonprofit organizations, so it’s important for you to understand that same perspective when you think about what makes your organization special. For example, if a funder suggests that your organization is just like “A”, it’s important that you be able to explain the similarities and differences between the two organizations.
Finding peer organizations gives you an opportunity to expand your network of supporters and advisors.
Market analysis gives you the information you need to support the strategic plan. For example, market analysis of the funding and earned income activities of your peer organizations will help support the assumptions you make in your own funding and earned income projections.
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As someone who facilitates strategic planning for nonprofits, I’d like to expand a bit more on the reasons for doing a market analysis.
Community relevance and support is an essential element of your ability to sustain work on your mission. I don’t know how else to assess this without conducting research and talking to key informants.
Market research helps you understand what the critical issues are in your service area and how the changing global landscape affects your work.
Talking to others builds awareness and support for your mission and provides critical feedback on how others perceive your organization.
Unless you engage with other institutions in your community, you won’t know what the opportunities are for collaborative work or were the critical leverage points for achieving increase societal impact my be.
»» Posted by: Gayle L. Gifford, ACFRe on August 28, 2008 01:08 PM