What is a management plan? Why does your organization need a management plan? How do you develop a management plan? How do you evaluate and adjust a management plan? Whether your organization is run by one volunteer or includes multiple programs, locations, employees, and partners, it needs a deliberate way to manage its work and responsibilities. A very small organization's management plan may be simple. A larger organization's plan may involve policies, departments, information systems, financial controls, governance processes, and extensive documentation. In either case, the purpose is the same: to help the organization carry out its mission responsibly, effectively, legally, ethically, and sustainably. What is a management plan? A management plan is the operating framework for how an organization carries out its work. It describes important responsibilities, decision authority, policies, processes, controls, communication, and systems needed for both everyday operations and longer-term organizational continuity. Depending on the organization, the management plan may address: Governance and decision rights Staff, volunteers, and other workforce responsibilities Financial management and internal controls Programs and services Operations, facilities, equipment, and vendors Information, records, privacy, and cybersecurity Risk, safety, emergency response, and continuity Partnerships, funders, community relationships, and public communication Evaluation and improvement The plan should be proportionate to the organization's size, complexity, risk, resources, and legal responsibilities. Several questions can help determine what the organization needs. What is the organization trying to accomplish? A temporary neighborhood initiative may need a much simpler management structure than a health center, housing organization, school, or multi-program nonprofit that expects to operate for many years. What work must happen reliably? Identify the recurring operational, financial, programmatic, legal, communication, and administrative responsibilities necessary to accomplish the mission. Who needs authority to act? People need enough decision authority to fulfill their responsibilities without unnecessary approval steps, while higher-risk decisions need appropriate review and accountability. What resources are available? Staffing, money, technology, facilities, expertise, and volunteer capacity all affect what management structure is realistic. What legal, ethical, contractual, professional, and governance requirements apply? Management practices must reflect more than organizational preference. How should the way the organization operates reflect its mission and values? An organization that values participation, accessibility, fairness, or community leadership should examine whether its internal practices support those commitments. Why does your organization need a management plan? Organizations can sometimes operate informally for a period of time, especially when they are small. But important responsibilities should not depend entirely on memory, personal relationships, or one person's availability. Even a one-person organization should know, for example: Who is authorized to use organizational funds How bills and taxes are handled Where important records are stored How sensitive information is protected What happens if the primary person becomes unavailable A management plan can help an organization in several ways. It clarifies roles, authority, and responsibilities. People know what they are responsible for, which decisions they can make, when consultation or approval is required, and where questions should go. It helps distribute work reasonably and fairly. Workloads, after-hours responsibilities, routine tasks, and high-visibility opportunities can be reviewed rather than repeatedly falling to the same people. It strengthens accountability. Responsibilities have owners, those owners have appropriate authority and resources, and there are ways to identify delays, problems, and unmet obligations. It supports reliable operations. Payroll, grant reporting, services, purchasing, technology, records, maintenance, and other necessary work can be completed through established processes. It protects people, assets, and information. Controls can reduce financial misuse, safety problems, data loss, privacy breaches, and other preventable risks. It supports continuity. Important work is less likely to stop simply because one employee, volunteer, vendor, or leader becomes unavailable. It helps align operations with mission and values. The way the organization treats people, makes decisions, uses money, communicates, and manages risk should be consistent with what the organization says it stands for. Mission alignment is important, but management plans also have to meet legal, financial, ethical, accessibility, safety, and governance responsibilities. How do you develop a management plan? Management planning involves a series of connected decisions rather than simply choosing one management style. Define governance, management, and decision rights Begin by identifying which responsibilities belong to the governing body, executive leadership, managers, staff, volunteers, committees, and other participants. For a nonprofit organization with a Board, clarify responsibilities such as: Mission and strategic direction Selection, support, oversight, and evaluation of the chief executive Financial oversight Legal and ethical integrity Resource development Program and organizational oversight Executive leadership generally manages day-to-day operations within the authority delegated by the Board. Individual Board members should understand when they are acting on behalf of the Board and when they are not. Unless governance arrangements provide otherwise, individual members should not independently direct employees. Design how decisions will be made Organizations may use different decision approaches for different types of decisions. Options may include: Individual authority within a defined role Delegated decision-making Consultation followed by an accountable decision Team decisions Shared governance in defined areas Board decisions Voting, consensus, consent, or another agreed process where appropriate One organization may use several approaches. Routine purchasing may be delegated to a manager. Personnel decisions may require Human Resources or executive review. Strategic changes may require Board approval. Program design may include staff and participant input. The goal is not to fit the entire organization into one label such as hierarchical or collaborative. It is to match decision authority with responsibility, expertise, risk, and accountability. Define the roles and relationships among the Board, executive leadership, managers, and staff Role clarity helps prevent both unnecessary conflict and gaps in responsibility. Ask: What authority belongs to each role? Which decisions require approval? Which decisions are delegated? When should people consult one another? What information should move between staff and the Board? Who supervises whom? How are disagreements or concerns escalated? How are conflicts of interest handled? Who may speak publicly on behalf of the organization? Document these responsibilities in appropriate places such as bylaws, Board policies, committee charters, job descriptions, delegation schedules, employee handbooks, and operational procedures. Review them when leadership, structure, law, programs, or organizational needs change. Hire and appoint people using clear, job-related criteria Management positions require both technical competence and the ability to carry out the responsibilities associated with the organization's governance and management approach. Define: Essential job functions Required knowledge and skills Decision authority Supervisory responsibilities Financial or compliance responsibilities Communication and collaboration requirements Use a consistent hiring process. Depending on the role, this might include: Structured interview questions Job-related work samples or scenarios Consistent evaluation criteria Relevant reference checks Appropriate background or credential verification where lawful and necessary Avoid relying heavily on intuition, charisma, or whether someone simply feels like a good "fit." Those impressions may reflect bias and may not predict performance. Make application, interview, onboarding, and employment processes accessible, and provide reasonable accommodations where required. Examine what needs to be managed The details will differ across organizations, but several broad management areas deserve attention. Governance, ethics, and compliance Clarify how the organization meets its legal, ethical, governance, contractual, and professional responsibilities. Depending on the organization, policies may address: Conflicts of interest Board and committee authority Whistleblower and nonretaliation procedures Document retention and destruction Confidentiality Ethics and conduct Required licenses or professional standards Regulatory and grant compliance People and workforce management Organizations manage roles, working conditions, performance, development, and employment responsibilities. Relevant areas may include: Job descriptions and essential functions Recruitment and hiring Employee, contractor, intern, and volunteer roles Compensation and benefits Scheduling and workload Leave Supervision and performance management Training and professional development Accessibility and reasonable accommodations Nondiscrimination and anti-harassment Workplace safety Grievance, complaint, and reporting processes Promotion and leadership development Discipline and separation procedures Succession and backup coverage People should know where to raise a concern when the concern involves their immediate supervisor or another person with authority. Financial management and internal controls Financial management should protect organizational assets while ensuring that resources are available for mission-related work. Relevant areas include: Budgeting Cash-flow monitoring and forecasting Payroll Billing and receivables Restricted and unrestricted funds Grant and contract requirements Fundraising and contribution processing Banking and investments Operating reserves Expense reimbursement Purchasing and approval limits Accounting and financial reporting Audit or independent financial review where appropriate Internal controls should make it difficult for one person to initiate, approve, record, and conceal the same financial transaction without appropriate review. Depending on organizational size, controls may include: Segregation of duties Approval limits Bank and account reconciliations Vendor review Expense documentation Restricted access to accounts and payment systems Periodic review by someone independent of the transaction Small organizations may not have enough employees to separate every duty. In that case, use compensating controls such as Board or independent review. Operations, facilities, equipment, and vendors Organizations need reliable systems for obtaining, maintaining, and replacing the goods and services required for their work. This may include: Facilities Vehicles Specialized equipment Computers and mobile devices Software and cloud services Communications systems Office and program supplies Clarify: Who may purchase or contract for goods and services What approval thresholds apply How vendors are selected How conflicts of interest are handled What contract terms and insurance requirements apply How vendor performance is reviewed How equipment and accounts are recovered when people leave Programs and services The organization's core work should be managed with the same care as its finances and administration. Consider: Program goals Roles and responsibilities Participant safety Accessibility Quality standards Appropriate documentation Outcome and process measures Participant and community feedback Evaluation Adaptation when evidence or circumstances change Review whether programs remain relevant to community priorities and organizational mission rather than assuming that a long-running program should continue indefinitely. Information, records, privacy, and cybersecurity Most organizations depend on digital systems and store information about employees, volunteers, donors, participants, partners, or community members. Management planning should address: What information the organization collects Why it collects it Where it is stored Who may access it How long it is retained How it is securely destroyed How important information is backed up What happens if systems or data are compromised Appropriate cybersecurity practices may include: Multi-factor authentication Strong access controls Timely software and security updates Reliable backups Staff security awareness Restricted administrative privileges Appropriate vendor security review An incident-response process Avoid collecting or keeping personal information that the organization does not need. Risk, safety, and continuity Organizations should prepare for disruptions rather than waiting until a crisis occurs. Consider risks involving: Safety Finances Staffing Facilities Technology Cybersecurity Vendors Reputation Legal or regulatory responsibilities Severe weather or other emergencies Identify essential functions and determine what is needed to continue or restore them. That may include: Backup personnel Alternate facilities or remote work Emergency contact procedures Access to critical records Financial authority during disruption Technology restoration Accessible emergency communication Relationships, partnerships, and public communication Organizations operate within networks of community members, participants, funders, partners, public agencies, vendors, media, and other organizations. A management plan may address: Community engagement Partnerships and referral relationships Funder stewardship and reporting Government relations and advocacy Public and media communication Crisis communication Who may speak officially for the organization Relationships should be professional, transparent, and connected to legitimate organizational or community purposes. Do not depend on personal friendship with funders, public officials, journalists, or other decision-makers as a substitute for appropriate processes. Collaborate with other organizations when doing so creates meaningful community or organizational value and when responsibilities, resources, confidentiality, and decision authority are clear. Write policies and procedures for important responsibilities Policies establish rules, responsibilities, principles, and limits. Procedures explain how particular work is carried out. Not every routine action requires a lengthy written procedure. Prioritize documentation where: Law or regulation requires it Safety is involved Financial assets are at risk Sensitive information is handled Consistency is important Several people perform the work Turnover could cause important knowledge to disappear A failure would have significant consequences Seek appropriate input from people who carry out or are affected by a policy, while also using legal, financial, human-resources, technical, professional, or governance expertise where necessary. For each important policy, clarify: Who owns it Who approves it When it takes effect Who must be trained on it Where it can be found How exceptions are handled When it will be reviewed Policies should be accessible to the people expected to follow them. Plan for succession and organizational knowledge Important operations should not depend entirely on one person's memory, password, relationships, or informal knowledge. Identify: Critical responsibilities Backup personnel Important records Account ownership and access Vendor and partner contacts Recurring deadlines Processes that need written documentation Leadership succession, staff transitions, leave, and emergencies all become easier when knowledge is shared and documented appropriately. How do you evaluate and adjust a management plan? A management plan should change when evidence, law, technology, staffing, programs, community needs, or organizational structure changes. Evaluation should combine ongoing monitoring with periodic comprehensive review. Monitor operational indicators Useful questions may include: Are important deadlines being met? Are roles and decision rights clear? Is workload sustainable? Are vacancies or turnover creating risks? Are grievances or complaints revealing patterns? Are programs delivering the intended services and outcomes? Are participants encountering access or accessibility barriers? Are financial reports timely and accurate? Are internal controls working? Are audit or monitoring findings being addressed? Have safety, privacy, cybersecurity, or other incidents occurred? Are vendors meeting their responsibilities? Are Board and management responsibilities functioning as intended? A complaint, missed deadline, or staff concern is information to examine, not proof by itself that the entire management system is failing. Gather structured feedback Depending on the organization, feedback may come from: Staff Volunteers Managers Board members Participants Community members Partners Funders or contract partners Use confidential or anonymous methods where appropriate so people can raise concerns that they may not feel comfortable sharing directly with a supervisor or leader. Compare policy with practice Periodically compare what policies say with what actually happens. A gap may mean: People need better training A process is impractical Responsibilities are unclear Technology does not support the required process The policy is outdated Accountability is weak Decide whether practice needs to change, the policy needs to change, or both. Review governance and leadership Evaluation may also include: Board self-assessment Chief-executive evaluation Review of committee effectiveness Review of delegated authority Examination of conflicts of interest Succession and continuity review Use outside review when helpful An accountant, attorney, human-resources adviser, cybersecurity professional, evaluator, governance consultant, insurance professional, or other specialist may identify risks or improvements the organization cannot easily assess itself. Outside review is particularly valuable when specialized expertise or independence is needed. Close the feedback loop When people provide input about management, explain what happens next. Communicate: What was learned What will change What will not change Why Who is responsible for implementation When progress will be reviewed Maintain the plan as a living organizational resource Assign responsibility for keeping the management plan and major policies current. Use: Effective dates Review dates Version control Approval records Clear storage locations Ensure that current versions are accessible to the people who need them. In Summary Management is too important to depend entirely on habit, memory, informal relationships, or one person's judgment. A management plan creates an operating framework for how the organization governs itself, assigns responsibility, makes decisions, manages people and money, operates programs and systems, protects information and assets, manages risk, and works with the community and outside organizations. The plan should fit the organization's size and mission without being limited to one management philosophy or structure. Effective management plans clarify governance and decision rights, distinguish Board oversight from day-to-day management, establish fair and lawful workforce practices, create appropriate financial controls, manage technology and information responsibly, prepare for disruption, and document important policies and procedures. They also make room for participation where it can genuinely influence decisions while keeping formal accountability clear. Finally, management plans should be reviewed rather than treated as permanent. Organizations should monitor operations, gather feedback, compare policy with practice, assess risk, learn from problems, and update systems as circumstances change. The goal is not simply to shape the organization according to one leader's preferences. It is to create management systems that help the organization fulfill its mission responsibly, sustainably, transparently, and effectively over time. Contributor Phil Rabinowitz Resources Online Resources The Center for Nonprofit Management: consultants on management issues (they charge fees). The Frances Hesselbein Leadership Institute links, readings, information, Fellowships, etc. in nonprofit management from the guru of same. Free Management Library. A free management library from the Management Assistance Center for Nonprofits, with 69 basic topics, broken down into 675 more specific subtopics. A wealth of information, of varying depth. A Guide: Developing a Street and Park Tree Management Plan is just one example of how to develop a management plan. Nonprofit Charitable Organizations. Links to many nonprofit topics, including management and boards. The Nonprofit Expert. Articles, ideas, and links to management topics, including an on-line Compendium of Federal and State Regulations for US Nonprofit Organizations. Nonprofit Support Center Provides leadership, consulting and training to help nonprofits do their work better. Sample of Nonprofit Management Plan, from DeLapa Consulting, outlines key elements and steps of a management plan. A great links page from the Urban Institute.
