Change management in nonprofit strategy has become increasingly important as nonprofit leaders balance mission, funding uncertainty, and leadership transitions. In today’s environment, that challenge is becoming far more complex. Funding can shift quickly, leadership transitions can happen unexpectedly, and external events can reshape priorities almost overnight.

In this episode of the Nonprofit MBA Podcast, Stephen Halasnik, Co-Founder of Financing Solutions (Nonprofit Lines of Credit), speaks with Matt Glazer of Blue Sky Partners about one of the most important issues facing nonprofit organizations today: change management in nonprofit strategy.

Glazer has led strategic planning efforts for more than 50 organizations and works with mission-driven groups on strategy, operations, leadership, and organizational development. Blue Sky Partners helps nonprofits and social impact organizations clarify vision, set priorities, and build practical roadmaps for growth and impact.

The conversation highlights an increasingly clear reality in the nonprofit sector. A strategic plan is no longer enough if it sits on a shelf. In a world of funding interruptions, workforce strain, board turnover, and policy volatility, strategy must become a living process. That is where change management plays a critical role.

This topic is especially timely because the nonprofit sector is facing real pressure. Data from the National Council of Nonprofits shows that nonprofits generate more than 80% of revenue from fees for services and government grants and contracts. At the same time, the 2025 Nonprofit Finance Fund survey found rising demand for services, increasing costs, and growing concern about future government funding.

Key Takeaways

  • Change management prepares nonprofit systems, staff, and leadership before disruptions occur.
  • Strategic plans work best when they are flexible, reviewed regularly, and informed by feedback.
  • Nonprofits should create contingency plans for funding interruptions, leadership changes, and policy shifts.
  • Succession planning is becoming increasingly important as experienced nonprofit leaders retire.
  • Successful nonprofit organizations approach planning with curiosity, listening, and adaptability.

Why Change Management in Nonprofit Strategy Matters Today

Strategy Is No Longer a Static Document

For many nonprofits, strategic planning once meant creating a three- or five-year roadmap, presenting it to the board, and revisiting it occasionally. That model no longer reflects the pace of change nonprofit organizations now face.

As Matt Glazer explains in the podcast, nonprofit leaders increasingly experience constant operational shifts. Funding may be paused, restored, modified, or delayed. Policy changes can alter program assumptions overnight. Major donors, executive directors, or board leaders may leave unexpectedly.

Because of this volatility, change management in nonprofit strategy has become essential.

At its core, change management means preparing in advance for the situations that could disrupt an organization. These changes may be negative, such as losing a grant, or positive, such as receiving unexpected funding that creates an opportunity for expansion.

The goal is not perfect prediction. The goal is to avoid being caught unprepared.

The Best Nonprofits Run “What-If” Scenarios

One of the most valuable concepts discussed in the podcast is the premortem exercise.

Instead of waiting until a crisis ends to analyze what went wrong, organizations ask those questions in advance.

Examples include:

  • What happens if a major funder withdraws support?
  • What happens if the founding executive director retires?
  • What happens if government reimbursements are delayed?
  • What happens if service demand suddenly doubles?

These questions are increasingly relevant.

The 2025 Nonprofit Finance Fund survey found:

  • 77% of nonprofits reported increased demand for services
  • 66% reported staffing shortages affecting program delivery

Even a plan that is only partially correct can be extremely valuable. A reasonably strong strategy developed during calm conditions is far more effective than trying to improvise during a crisis.

Planning ahead also allows nonprofits to take practical steps such as:

  • building reserve funds
  • cross-training staff
  • documenting operational procedures
  • securing a line of credit before it becomes urgent

Donors Are Asking Tougher Questions

Funders and donors are becoming more sophisticated. Increasingly, they want more than a compelling mission. They want evidence that an organization can handle change.

For smaller nonprofits, this can be challenging. According to the National Council of Nonprofits, the United States has roughly 1.5 million nonprofit organizations, and most operate with limited administrative resources.

Yet funders still ask critical questions:

  • What is your succession plan?
  • What happens if leadership leaves?
  • How often do you evaluate programs?
  • Do you have documented policies and procedures?
  • How do you measure impact?

These questions reflect a growing expectation that mission-driven organizations also maintain strong operational planning.

Strategic planning is no longer only an internal leadership exercise. It has become a key factor in establishing credibility with funders.

Agile Strategic Planning for Nonprofits

One of the most important ideas Matt Glazer emphasizes is that modern nonprofit strategic plans must remain agile.

Over the past decade, events have repeatedly disrupted long-term planning assumptions:

  • the COVID-19 pandemic
  • evolving expectations around equity and governance
  • policy changes at multiple levels of government
  • workforce shortages and burnout

These realities do not make planning pointless. They make adaptive planning necessary.

A strong nonprofit strategy should be:

  • directionally firm about mission and priorities
  • operationally flexible enough to adjust when conditions change

Glazer recommends reviewing strategic plans every nine to twelve months, rather than waiting several years.

Organizations should also make feedback collection easy using tools such as digital surveys, website forms, or existing communication systems.

The biggest mistake is not adjusting the plan. The biggest mistake is gathering information and never using it.

Great Strategy Begins with Curiosity

When asked what the strongest organizations share, Glazer points to a surprising factor: mindset.

Successful nonprofits approach strategy with curiosity.

They listen carefully to stakeholders. They welcome feedback. They remain willing to revise their ideas when better solutions emerge.

Some of the best strategic ideas originate outside leadership teams.

For example, while working on accessibility challenges in West Virginia courts, feedback revealed a more effective solution than originally expected. Instead of expanding courthouse infrastructure, planners proposed creating localized or virtual access points in unused government buildings. The result was cheaper, more accessible, and better aligned with community needs.

The lesson is clear. Strategic planning works best when leaders actively listen rather than defend existing assumptions.

The Nonprofit Sector Faces a Leadership Transition

One of the most urgent challenges discussed in the podcast is succession planning.

Many nonprofit leaders and long-serving board members are approaching retirement. At the same time, there are not enough trained individuals ready to replace them.

The 2025 State of the Nonprofit Sector findings highlight ongoing staffing shortages, burnout, and leadership gaps across organizations.

Succession planning must become a strategic priority.

Organizations should:

  • identify future leaders early
  • cross-train staff members
  • involve rising talent in high-level discussions
  • develop governance committees that prepare future board chairs

Nonprofits that invest in leadership development are not only protecting themselves from disruption. They are building long-term capacity.

Strategic Planning Should Be Useful and Inspiring

Toward the end of the podcast, Stephen Halasnik makes an observation that often surprises people.

Strategic planning can actually be fun.

When done well, planning is not just a technical exercise. It is an opportunity to think expansively about community impact, long-term goals, and organizational excellence.

It is where nonprofit leaders ask:

What is the best version of what our organization could become?

For many organizations, change management in nonprofit strategy is becoming essential to maintaining stability and long-term impact. A planning process that combines discipline with imagination can strengthen morale, clarify priorities, and improve execution.

The most successful nonprofits do not simply create strategic plans. They actively use them, revisit them regularly, and continuously refine them.

Key Statistics About the Nonprofit Sector

  • The United States has approximately 1.5 million nonprofit organizations.

  • 80%+ of nonprofit revenue comes from fees for services and government grants and contracts.

  • 77% of nonprofits reported increased demand for services in the 2025 Nonprofit Finance Fund survey.

  • 66% reported staffing shortages affecting service delivery.

About the Experts

Stephen Halasnik

Stephen Halasnik is Co-Founder of Financing Solutions, a leading provider of lines of credit for nonprofits in the United States. He is also the host of the Nonprofit MBA Podcast, where he interviews experts on nonprofit finance, leadership, fundraising, and operations.

Matt Glazer

Matt Glazer has built a diverse career focused on launching new ventures, executive management, and change management; he has led strategic planning for over 50 organizations. He held the role of Community Director at WeWork in Central Texas, overseeing 11 buildings, two retail storefronts, and the go-to-market strategy for San Antonio. As a two-time Executive Director at nonprofits, including the Austin Young Chamber of Commerce and Progress Texas, he successfully transformed these organizations into significant forces in their respective fields. At Blue Sky Partners, Matt leads social impact, sales and development, and strategic programming, working with clients like the Aspen Institute and City of Austin

Frequently Asked Questions

What is change management in a nonprofit?

Change management in a nonprofit is the process of preparing staff, systems, and operations to adapt to disruptions such as funding changes, leadership transitions, policy shifts, or changing community needs.

Why is change management important for nonprofit strategy?

Strategic plans only work if organizations can respond when conditions change. Change management helps nonprofits adapt without losing focus on their mission.

How often should nonprofits review their strategic plans?

Many nonprofits still use three- to five-year planning cycles, but experts recommend reviewing strategic plans every nine to twelve months.

What should be included in nonprofit contingency planning?

Organizations should prepare for scenarios including funding loss, delayed grants, leadership transitions, board turnover, staffing shortages, and unexpected growth opportunities.

Do small nonprofits need strategic plans?

Yes. Smaller nonprofits often benefit the most from strategic planning because limited staff and resources make clear priorities even more important.

Related Questions Nonprofit Leaders Ask

How do nonprofits handle leadership transitions?

Nonprofits typically manage leadership transitions through succession planning, board oversight, and leadership development. Organizations often identify future leaders early and cross-train staff to ensure operational continuity.

What is the difference between strategic planning and change management?

Strategic planning defines long-term goals and priorities for a nonprofit organization. Change management focuses on how the organization adapts when circumstances shift, such as funding changes, leadership transitions, or policy updates.

How often should nonprofits update their strategic plan?

Many nonprofits create three- to five-year plans, but experts recommend reviewing strategic plans every nine to twelve months to adjust for changing conditions.

What should be included in a nonprofit succession plan?

A nonprofit succession plan should identify future leadership candidates, outline emergency transition procedures, document operational processes, and define board responsibilities during leadership changes.

Podcast Transcript

(Edited for clarity)

Stephen Halasnik:
Hello everyone, my name is Stephen Halasnik. I’ll be your host for today’s Nonprofit MBA Podcast. I am co-founder of Financing Solutions, and we are the largest provider in the United States of lines of credit for small nonprofits. If you’re interested in learning more about a line of credit for your organization, please visit our website at nonprofitmbapodcast.com.

Today I’m very excited to be speaking with Matt Glazer from Blue Sky Partners. Today, we’re going to be talking about change management in regard to nonprofit strategy.

A little background about Matt: Matt has built a diverse career focusing on launching new ventures, executive management, and change management. He has led strategic planning for over 50 organizations. He held the role of Community Director at WeWork in Central Texas, overseeing 11 buildings, two retail storefronts, and the go-to-market strategy for San Antonio. As a two-time executive director at nonprofits, including the Austin Young Chamber of Commerce and Progress Texas, he successfully transformed these organizations into significant forces in their respective fields. At Blue Sky Partners, Matt leads social impact sales and development and strategic programming, working with clients like the Aspen Institute and the City of Austin. Matt, welcome to today’s Nonprofit MBA Podcast.

Matt Glazer:
It’s great to be here. Thank you so much. That bio made me sound way more impressive than I actually am, but I’ll try to do my best.

Stephen Halasnik:
That’s fine. Usually it’s the opposite. I’m sure you have more impressiveness than that. I usually ask this at the beginning. It is now March 5, 2026, the recording of this. In your nonprofit world, with the current administration, how has this affected you?

Matt Glazer:
It’s been an interesting term. I work with folks and have been serving as an interim executive director since the beginning of the pandemic. One of the things we’re seeing a lot right now is folks waking up on Monday and their funding has been paused, halted, or stopped. On Tuesday, it’s back on. On Wednesday, there’s a new set of reports. On Thursday, it’s time to halt it again. Then on Friday, it’s like the week never happened and they should keep doing business as usual.

It’s that kind of whiplash and change management and strategy that is really hard on individuals and organizations. It’s tough to know what you’re going to do from a programming or outcomes basis, or how you serve clients and benefit your community, when you don’t really control how your day is going to go. We’re talking a lot with folks about resilience planning, strategic planning, operational planning, and how to keep doing the good work for a long time when the rug might be pulled out from underneath you. I feel like that has been more true this year than in the 25 years of my experience.

Stephen Halasnik:
Typically the topics I like to talk about are relevant to the time. Today we’re talking about change management in regard to nonprofit strategy. Before we got on the air, we were discussing the topic, and I like the phrase change management because I think that is the phrase of the year. There’s a lot of change going on. When you think of change management, Matt, how would you define that?

Matt Glazer:
Change management means slightly different things for for-profits versus nonprofits. When I think about it, I’m really thinking about how you build systems and processes, and how you operationalize in a situation of change. The most normal version of that would be an executive leader leaving, a board transition, or a change in funding. At the heart of all of it is saying: I want to plan ahead, or I want to be thoughtful, and think about all the different ways the world could change around me. I want to have plans or processes in place.

That way, if something does happen, we can pull that binder down or open up that file in Google Drive or SharePoint and say, yes, we already know exactly how we’re going to execute this. In some cases that could be a state contract or federal contract being frozen, which is a little dire. But sometimes it’s also really great stuff. I’ve worked with clients who got unexpected funding and suddenly had a surplus of two or three million dollars, which is a problem I would love for everybody to experience. Then the question becomes how do you deploy that capital? That is also part of change management.

What I really think about is: what plans do you need to make now, before there’s a problem, before there’s a catastrophe, that you can pressure test, think through, and really evangelize inside your organization and community? That way, when change comes, which is inevitable, you’re ready to execute.

Stephen Halasnik:
I like that. I tend to be a planner by nature, so I like the idea of doing a what-if scenario. What if we don’t get this grant? What if we lose 50% of our funding? What if our executive director leaves? If you go through those scenarios, it really doesn’t seem like it would take that much time.

Matt Glazer:
No, it doesn’t. At this point, we are experiencing changes so much more rapidly that we can kind of plan and think about them in a way I don’t think people really could 10 years ago. There’s this wonderful thing I like to do with clients called a premortem. It’s also known as TRIZ if you use liberating structures.

We talk all the time about doing a postmortem after a program has run or after something has happened. We analyze what that was like. But we can do a premortem too. What happens if this critical funder decides they don’t want to fund us anymore? What happens if our founding executive director who has been around for 10 years decides it’s time to retire? What happens if we are a mentor organization that has always operated in person and suddenly a global pandemic happens and we have to do it all virtually?

These are real questions people have either had to deal with or think through in the past five years. I love to think through these premortems, then use AI tools, conversations, and human-centered design to build a plan around them. We may not be 100% accurate, but a plan that is 60% or 70% accurate is pretty great. No one is grading you. And it allows us, in a moment of clarity, to do the basic things like go get that line of credit, figure out your contingency fund, and put tools in place while things are still okay rather than in the middle of a crisis.

Stephen Halasnik:
You do consulting work with nonprofits, is that correct?

Matt Glazer:
At the heart of what I do, I am a consultant and an interim executive director. We do strategy, operations, and change management consulting at Blue Sky Partners.

Stephen Halasnik:
What are people typically asking you when they think about bringing you on board?

Matt Glazer:
There are usually two conversations. The first is they meet me at a conference or hear me on a podcast and they’re already thinking something is a little off, or they need help responding to something. They’re reactive.

My ideal client, though it happens less often, is someone who says we don’t have a problem, but we want to think about a 10-year strategic plan or build a process to reevaluate programs every five years and make sure they have the impact we intend.

So it’s really two ends of the bell curve. One is hyper-proactive and intentional. The other is reactive: we haven’t had a strategic plan in a long time, and now a funder says they’ll only fund us if we have one, so we need to create it quickly. Or the executive director has left and we need help filling that role and conducting a search.

Stephen Halasnik:
Does that happen often, that a grantor requires a strategic plan?

Matt Glazer:
More and more. As donors become more sophisticated, they are asking for things a lot of nonprofits don’t have. If you’re a smaller nonprofit with a sub-million-dollar budget, a staff of one or two, and a working board, you probably don’t have codified policies and procedures or a succession plan. Before some donors give a multi-year commitment or a large grant, they want to know what happens if your executive director wins the lottery and goes to sit on a beach. They want to make sure their money will be spent well. So donors are increasingly asking for detailed planning documents.

Stephen Halasnik:
What are the deliverables you help them come up with?

Matt Glazer:
We don’t just deliver everything at the end. We like to deliver along the way because we want to make sure the work never stops. Usually about a third or halfway through, we provide an insights report. We gather data, share survey results, talk about what we found in document reviews, and say: this is what we’re seeing, this is expected, this isn’t expected, this is strong, and here are the opportunities.

That gap analysis helps organizations start working before the final plan is finished. Then we move into implementation, mission, vision, goals, succession planning, resources, accountability, and timelines. At the end, they get a working plan: who is going to do what, on what timeline, and what the desired outcomes are. The two biggest deliverables are always the insights report and the final plan.

Stephen Halasnik:
What percentage of nonprofits would you say are against this?

Matt Glazer:
I don’t think anybody is against it. I think it’s a question of whether they have the time, talent, and treasure to invest in it. Most people see the value. The real question is: how much does it cost, do we have time, and what are we sacrificing to make this happen?

That’s hard in the nonprofit sector because people feel that if they spend one hour less on programs, they are helping fewer people. That’s where we try to come in as a capacity-building piece and be additive, so folks don’t have to stop doing the good work.

Stephen Halasnik:
What are you seeing now in terms of strategic planning versus five years ago?

Matt Glazer:
The biggest thing is people are trying to figure out how a strategic plan can be organic, living, and responsive to the moment, without getting overly fixed to specific words. Nobody could have planned the past 10 years exactly as they turned out. Whether it’s the pandemic, conversations around race and equity, electoral politics, Supreme Court rulings, or policy changes through executive orders and legislatures, there has been a lot of whiplash.

So how do you have goals and metrics that are directionally firm enough to move people forward, but soft enough and agile enough to meet the moment? That’s where people are asking different questions now.

We anchor everything in human-centered design because if you know what your funders, stakeholders, customers, and clients want, that gives you a lot of influence and power to meet the moment.

Stephen Halasnik:
What do you do when change is coming faster than the strategic plan can handle?

Matt Glazer:
We build evaluation and reevaluation into the planning process. It might be through a committee, through the annual report, or another feedback system. We customize that based on the organization because it looks different in education, healthcare, or other fields. It also differs depending on whether you rely heavily on government grants or have one large unrestricted donor.

But we always bake in evaluation. Not just at year four of a five-year plan. Every nine months, every 12 months. We make it easy through tools like MailChimp, Constant Contact, or something on the website. And you have to make sure the data gets used.

Stephen Halasnik:
Think about a client you’ve worked with that does a really great job with strategic planning. What makes them exceptional?

Matt Glazer:
It doesn’t matter how big or small your nonprofit is. The teams that get the most out of planning or change management are the ones that walk in curious. They have active listening. They understand their goals and impact well enough that they can take feedback, honor it, and still be willing to modify their intended idea.

Some of the best ideas come from listening. I remember doing work in West Virginia on a strategic plan for the court system. One thing that kept coming up was how hard it was for people in rural areas to get to a courthouse. The idea emerged: what if we created virtual court access or retrofitted unused rooms in federal or state buildings? It was much cheaper, more accessible, and closer to people than what had existed before. That idea came from listening.

Stephen Halasnik:
What are some of the biggest strategy changes nonprofits are asking about in the last year?

Matt Glazer:
We’re seeing a lot of succession planning conversations. Aging personnel on boards and staff is a real concern. People in executive leadership roles are ready to retire, and there simply are not enough people trained up to move from program manager to executive director or development coordinator to development director.

We’re also seeing a crunch with boards. Busy people keep being asked to serve on more boards. Eventually they say they can’t do it anymore. When one person serving on six or seven boards steps down, you’re not losing one board member. You’re losing six or seven. There aren’t enough people with the training and experience to take on those fiduciary roles. So there is a real personnel crunch from top to bottom, from staffer to board member, from volunteer to paid staff.

Now is the time to invest in teams, send them to conferences, get them certified, and cross-train them. I think this is the tip of the iceberg, not a crisis that will just resolve itself.

Stephen Halasnik:
If someone is listening and realizes they need to do a strategic plan or update one, but they can’t afford a consultant, is there a book you’d recommend?

Matt Glazer:
First, if someone comes to me with a budget and timeline, I promise we can make something work. Many consultants would rather do good work than not do it. If the budget is very limited but the organization has time, there may still be ways to do it slowly and make it affordable.

If even that is too much, I’m working on toolkit materials and worksheets to give away some of the process for free. That said, I don’t think there is one perfect one-stop-shop strategy book for nonprofits. Jim Collins has Good to Great and also a shorter piece for the social sector, which is useful for thinking about the flywheel, impact alignment, and having the right people in the right seats, but it doesn’t fully solve nonprofit strategy. Joan Garry also has great work, but that leans more toward personnel, governance, and fundraising. There’s no perfect strategy book just for nonprofits that does everything.

Stephen Halasnik:
When it comes to strategic planning nowadays, where does change management come into play?

Matt Glazer:
I think it’s at the heart of it. If you don’t have the right people in the right places, your change management, strategic planning, succession planning, and personnel planning won’t work. Part of this is looking at your team and asking: who could be a future board chair? Who should be on a governance committee or fundraising committee so they can develop the right skills?

I’m working with one pediatric clinic, Lirios Pediatrics, that serves uninsured children. They help about 3,000 kids a year whose families do not have insurance. There are people on that team who are incredible. I’ve pulled some aside and said, you’re going to be an executive director one day if you want it. What can I do to support you? What skills do you need? What meetings do I need to include you in?

They’re now sitting in meetings about growth, space acquisition, grants, and fundraising development. It may be five or 10 years before they become executive directors, but if we are serious about people being in the right positions, that long-term investment has to happen now.

Stephen Halasnik:
I’ve been around thousands of business owners. If I asked what percentage of for-profit organizations under $5 million in revenue have a business plan, I’d guess 10% or less. And that shocks people because they assume everyone has a business plan. The reason I bring it up is that I believe having a strategic plan, whether for-profit or nonprofit, dramatically increases the probability of success.

When I see organizations that have a strategic plan and actually follow it, their probability of survival goes up exponentially. The best-run organizations do strategic planning.

If you’re not doing it now, and honestly it’s fun, then you should be. I’ve always had strategic plans. I enjoy doing them with the team. I enjoy the whole process and trying to be a great organization. The fact that it really improves your success drives home the idea that you should have one.

Matt Glazer:
I completely agree. The thing that made me smile most was when you said it’s fun. I love thinking about what could be. What kind of vision could we have? What impact could we have? What legacy could I have in helping the communities that are important to me?

If that’s not fun, then your strategic planning process is probably more structure than substance. It needs to be meaningful. It needs to be long-term thinking. It needs to get you to a place where you ask, what is the best possible thing I could do with this life that I’ve got?

We could all make more money doing something else. But what’s really cool about this sector is being able to point to chapters of your life and say: look at what I built. Look at what impact I had. Look at the life that was affected.

If you can’t do that in your strategic planning, succession planning, or change management process, then you’re not having enough fun with it.

Stephen Halasnik:
That’s a very good statement. I agree with you. We’re going to leave it there because I thought that was really good.

I’d like to thank Matt Glazer from Blue Sky Partners for coming on today’s podcast. If you liked today’s podcast, please feel free to share it with a friend and also subscribe on your favorite podcasting app.

And of course, if you’re looking for a line of credit for your organization, please visit our website at nonprofitmbapodcast.com. Matt, if anyone wants to get in touch with you, how should they do that?

Matt Glazer:
We are super easy to find. We are at blueskypartners.co, not .com, .co. We’re also very active on LinkedIn and a couple of other social media platforms. My name is Matt, so you can always email me at [email protected]. We would love to talk with anybody listening, help anybody who’s listening, and be a friend and co-conspirator in any project. Please look us up and let us be your biggest cheerleader.

Stephen Halasnik:
Matt, thanks for coming on today.

Matt Glazer:
Real pleasure. It was so much fun.

Stephen Halasnik:
And for our listeners, if you have any feedback on the podcast, if there’s something I said that you don’t like, if there are topics you wish I had covered, anything at all, please feel free to reach out to me.

It’s March right now, and I just want to remind everybody that burnout is a big deal in this industry. You’re no good to your team, your family, or your cause if you’re not at your best every single day. So make sure every day you’re thinking about what you need to do for yourself so that you can stay energized and sane.

That could be exercise. It could be meeting a friend for coffee. It could be praying or meditating, whatever works for you to keep you grounded. Just a reminder, because we need you. Thank you for all the work you’re doing out there. I know Matt and I are doing our own part in our little way, but you are out there on the front lines, and we appreciate that.

Other than that, thank you for listening to the Nonprofit MBA Podcast, and everybody have a fantastic day.