Public and nonprofit organizations use strategic planning. It is a tool that enables them to respond promptly to the challenges presented by the modern, fast-paced business environment. This paper discusses the importance of strategic plans for these organizations and how it helps them to acquire a competitive advantage. It also provides an example of the effectiveness of Save the Children’s strategic plan. A strategic plan is crucial to the success of public and nonprofit organizations for three main reasons. Firstly, achieves this by bringing clarity to the vision, mission and goals of the organization. Secondly, a clearly defined strategic plan provides a roadmap that enables the organization to prepare appropriately for the future. Thirdly, a strategic plan guides the organization in decision making since the desired outcome is already defined.