e-Newsletter: Connect to Solutions
Nonprofit Collaboration: Myth or Reality?
by Susan Griffin, Director of Operations, Center for Nonprofit Excellence
Collaboration is one of the big buzz words in the nonprofit sector. This is in part because fundraising in 2010 remains a huge challenge. As Ohio’s 2011-2012 biennial budget predictions paint an even gloomier picture for the State’s nonprofit sector, the fundraising pressure will continue for at least the next few years.
So one way to deal with these financial challenges is to collaborate – right? Or not? While some research has shown that there are no (or very minimal) cost-savings generated in nonprofit collaborations, the general public and most funders are “strongly encouraging” collaborations of any kind.
Part of the push is because many people think there are simply too many nonprofits – too much duplication of service, and/or too many small organizations that can’t support their infrastructure. And there is some truth to both statements, but in specifics, not in generalities. There may be too many mentoring programs in the same geographic area of a community because the organizations are small and operate under the radar; but there are more mentoring services needed based on demographics. Small organizations may struggle with infrastructure, but it is their flexibility that enables them to provide services to people who fall through the cracks of larger programs.
Whether you are considering a one-time alliance for a specific program to a full merger, starting with a collaboration assessment enables you to determine the strengths you bring to the table, the challenges you will need to divulge, and clarifying the intent of a collaboration, will provide a strong basis for deciding whether the time needed to pursue a collaboration will truly benefit your nonprofit.
The assessment includes a review of these areas:
• Vision & mission
• Level of collaboration desired
• Expectations of collaboration
• External factors impacting collaboration
• Internal factors
• Assets the organization brings to a strategic alliance
• Goals for a strategic alliance
• Internal capacity to develop & manage strategic alliances
Michael Gilbert says that “The great secret of successful collaboration is this: The only agreement you have to have is on what you are all going to do. That's it. You have to agree on actions. You don't have to bring the visions and missions of your organizations into alignment.” But, according to Professor John Yankey, Ph.D., of Case Western Reserve University, trust is the single most critical factor in the outcome of any type of collaboration or strategic alliance. Without trust between the leadership of the organization, it is very difficult to surmount the challenges that collaboration brings, even if it’s “just agreeing on actions.”
Director of Programs at the Meyer Foundation, Rick Moyers recently commented that he thinks “the idea that mergers save money and promote efficiency will eventually be discredited as an urban legend. But I do see more mergers coming.” Collaborations that result from open, honest communication and complementary missions will provide benefits in both economic and programmatic areas, so that the sector can continue to regroup and revitalize.
Contact Jeff Vengrow at (330) 762-9670 to learn how CNE can help your nonprofit address collaboration options and challenges.
Resources & Sources
Fieldstone Alliance: Free Tools & Articles
Fieldstone Alliance: Collaboration Bibliography
The Chronicle of Philanthropy Live Discussion: What is the “New Normal” for Foundations?
Ray, Karen Louise. The Nimble Collaboration: Fine-Tuning Your Collaboration for Lasting Success. Saint Paul, Minn: Amherst H. Wilder Foundation, 2002.
Click here to view the book on Amazon or contact Sara at center@cfnpe.org to borrow the book through CNE's Nonprofit Resource Library.
Gilbert, Michael. “A Practical Approach to Collaboration." Nonprofit Online News Journal. April 2005. Web. 34 Mar. 2010.
<http://news.gilbert.org/PracticalCollaboration>.