Planning as Strategy in Nonprofit Organizations: An Exploratory Study

This exploratory study examines formal planning processes in two different nonprofit organizations, those serving the mentally retarded and those in the performing arts, in two distinct geographical areas. Significant differences existed in the major types of Planning pro cesses employed by these nonprofits that seemed to relate to the nature of their funding environments. Important internal and exter nal factors influenced whether these forty-four nonprofits adopted plans for such matters as the size of the organization's budget, the primary function of its board of directors, and interaction with other local nonprofit managers engaged in formal planning. Differences in the extent of planning behavior between the two geographical areas suggests that local structures that support professional manage rial practices influence the diffusion of such practices.