This statement is not correct.

Strategic management aims to achieve business goals and focuses on correct alignment of business organisation with its environment. Since objectives of strategic management is to strengthen the business position, it is equally important in both profit or non-profit organisation. So strategic management applies equally to profit as well as non-profit organizations.

Though non-profit organizations are not working for the profit, they have to have purpose, vision and mission. They also work within the environmental forces and need to manage strategically to stay afloat to accomplish their objectives. For the purpose of continuity and meeting their goals, they also need to have and manage funds and other resources just like any other for profit organization.