When reviewing grant applications, funders often ask a seemingly straightforward question: “Does your organization have a strategic plan? If not, why not?” This question can trigger anxiety, especially if your organization doesn’t have a formal strategic plan document. But understanding why funders ask this question and how to respond effectively can transform this potential roadblock into an opportunity to showcase your organization’s strengths.

Why Funders Care About Strategic Plans

A strategic plan isn’t just another document collecting dust on a shelf. For funders, your strategic plan (or lack thereof) reveals important insights about your organization:

• Long-term thinking: It shows you’re thinking beyond immediate needs and planning for sustainable impact.
• Organizational direction: It demonstrates you have a clear vision and are not simply chasing available funding.
• Capacity assessment: It indicates your ability to plan and execute complex initiatives effectively.

As we discovered in our grant readiness research, many grant applications use the strategic plan question as a quick way to narrow down their applicant pool. This seemingly simple yes/no question actually carries significant weight in the evaluation process.

Answering “Yes, We Have a Strategic Plan”

If your organization has a current strategic plan, your response should:

• Briefly mention when it was created and its timeframe (e.g., “Our 2025–2028 Strategic Plan was developed through a six-month process involving board, staff, and community input”)
• Highlight 2–3 key strategic priorities that align with the funding opportunity
• Explain how the requested funding fits into your broader organizational strategy
• Mention your review and adaptation process (e.g., quarterly strategy reviews, annual updates)

Answering “No, but…” Effectively

If your organization doesn’t have a formal strategic plan, don’t panic! Many successful organizations, especially newer ones, operate without a formal document. The key is to frame your response positively:

For organizations actively developing a plan:

“While we don’t currently have a formal strategic plan document, we’re actively engaged in strategic planning. Our board and leadership team began this process in [month/year] and are  working with [consultant/facilitator if applicable]. We expect to complete and adopt our first comprehensive strategic plan by [target date]. In the interim, we’re operating under a clear set of strategic priorities that include [list 2–3 priorities relevant to the funding request].”

For newer organizations:

“As a relatively new organization established in [year], we’ve been focused on establishing our core programs and building operational capacity. Our board has prioritized strategic planning for the coming fiscal year, with a committee already researching planning models and potential facilitators. Currently, we operate using our founding mission document and annual goal-setting process, which provides clear direction while allowing flexibility as we grow.”

For organizations with alternative planning approaches:

“Rather than a traditional strategic plan, our organization uses a rolling 18-month strategic framework that we update quarterly. This approach allows us to remain responsive to our rapidly changing environment while maintaining strategic direction. Key elements include [mention relevant components like needs assessment, community feedback loops, or data-driven decision-making processes].”

Strategic Alternatives to Highlight

If you don’t have a formal strategic plan, emphasize other strategic elements your organization does have:

• Mission and vision statements that guide decision-making
• Annual operating plans with clear objectives and metrics
• Program-level logic models showing your theory of change
• Board-approved strategic priorities or organizational goals
• Regular strategic reviews built into your governance calendar

The Bottom Line

Remember, funders aren’t trying to trip you up with this question – they want to ensure their investment will be maximized through thoughtful planning and execution. By responding honestly while emphasizing your organization’s strategic thinking and commitment to improvement, you can turn this potential stumbling block into a demonstration of your organization’s self-awareness and growth mindset.

Whether you have a comprehensive strategic plan or are working toward one, the most important thing is to show funders that your organization operates strategically, even if that strategy isn’t yet captured in a formal document.