Are your capital projects connected to your strategic priorities?
Let’s consider a new dining hall project at a resident camp. Is this project strategic, or simply reactive to growth in campers or the declining state of the building? This example drives home the importance of using a strategic framework to guide capital projects. Too often, nonprofits begin with a perceived need rather than a strategic imperative.
Capital planning and master planning for facilities flow from strategy… not the other way around.
Strategic planning defines where the organization is going, how it will get there, and how success will be measured. A strong process clarifies why the organization exists—its mission, vision, and values—and uses that clarity to guide capital priorities.
For the best possible fundraising outcome, there needs to be a straight line from strategy to investment. Not only do the fundraising basics fall into place easier, but this can also prevent “pet projects” and scope creep. Plus it reinforces disciplined storytelling for staff and board members to share with donors.
One of the most practical outcomes of strategic planning is the development of a strategy screen: a simple but powerful decision-making tool for evaluating future initiatives, including capital projects. If you have a project you are considering, here are four strategy screen questions you can use right away:
- Will the project strengthen, not strain, our financial model?
- How does the project advance our mission and vision?
- Does the project serve our key client or target population?
- How might we mitigate the known risks associated with the project?
The strategic plan should validate why the project exists. The strategy screen adds discernment to its impact and urgency. Taken together in this sequence, they can improve the confidence of the board, strengthen fundraising narratives, and reduce misaligned or premature capital spending.
Let’s go back to the dining hall project. The strategic priorities for the organization outlined in the strategic plan include enhanced access and inclusion, expanded community engagement, and deepened belonging for the community. When the dining hall project can be clearly traced back to strategic priorities (growth, access, and belonging) it stops being “just a building” and becomes a catalyst for mission impact. Donors are far more likely to invest when they can clearly see how a project advances long-term impact rather than solving a short-term problem.
Want to talk more about how your strategic plan connects to an upcoming capital project? Contact us for a free hour-long consulting conversation. We’d love to help!
