How do you conduct a nonprofit environmental scan to assess your external and internal factors?

1 What is a nonprofit environmental scan?

A nonprofit environmental scan is a comprehensive and holistic analysis of four key areas: political, economic, social, and technological (PEST). These areas represent the macro forces that shape the context and conditions of your nonprofit sector and your specific field of work. A PEST analysis can help you understand the external factors that influence your organization's opportunities and threats, such as policies, regulations, funding, demographics, values, needs, preferences, innovations, and disruptions.

2 How to conduct a PEST analysis?

To conduct a PEST analysis, you need to collect relevant and reliable data from various sources, such as reports, surveys, statistics, media, publications, websites, experts, stakeholders, and competitors. You can use different methods and tools to gather and organize the data, such as interviews, focus groups, surveys, SWOT analysis, Porter's five forces analysis, and scenario planning. You can also use frameworks and models to guide your analysis, such as the STEEPLE model (which adds environmental, ethical, and legal factors to PEST), the PESTEL model (which adds environmental and legal factors to PEST), or the DESTEP model (which adds demographic and ecological factors to PEST).

3 How to assess your internal factors?

In addition to analyzing the external factors, you also need to assess your internal factors, such as your organization's resources, capabilities, performance, culture, values, vision, mission, goals, objectives, and strategies. These factors represent the micro forces that determine your organization's strengths and weaknesses, as well as its alignment with its external environment. To assess your internal factors, you need to conduct a self-evaluation of your organization's structure, functions, processes, systems, policies, procedures, staff, volunteers, board, partners, donors, beneficiaries, and impact. You can use different methods and tools to conduct a self-evaluation, such as surveys, interviews, focus groups, observations, audits, reviews, benchmarking, balanced scorecard, and logic model.

4 How to use the results of your nonprofit environmental scan?

The results of your nonprofit environmental scan can help you identify the gaps, challenges, opportunities, and priorities for your organization's strategic planning. You can use the results to formulate your strategic vision, mission, goals, objectives, strategies, actions, indicators, and targets. You can also use the results to monitor and evaluate your progress and performance, as well as to adjust and adapt your plans as needed. By using the results of your nonprofit environmental scan, you can ensure that your organization is responsive, relevant, effective, efficient, and sustainable in fulfilling its mission and serving its stakeholders.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?