Collaboration has always been a hallmark of the nonprofit sector. These efforts may take a variety of forms, which is the first important truth to realize about collaboration — it represents a spectrum of possibilities from associations to partnerships all the way to mergers.
The term I most like when discussing this topic is “sustained collaboration,” as it encompasses the many possibilities along the spectrum. Many nonprofits are now more intentionally investigating sustained collaborations, either for strategic or survival purposes. Here are 3 benefits of meaningful nonprofit collaborations:
Improved ability to deliver services
Many nonprofits have developed an innovative approach to addressing complex community challenges. However, the limitations of their geographic reach, staff capacity, or financial position prevent them from expanding their service delivery. Sustained collaboration with a partner can be a means to expand reach and impact.
This may benefit you if: There is demand for your programs outside your current service area that you cannot meet.
Increased efficiency
Courtesy of Gregory Nielson
Gregory Nielsen is president and CEO of Nielsen Training & Consulting.
There is a common refrain many nonprofit leaders have heard repeatedly throughout their career: “There are simply too many nonprofits in our community and they are duplicating services.” While this statement is largely spurious, the duplication that is of most concern and presents the greatest opportunity for sustained collaboration is administrative duplication. It takes significant administrative resources to sustain a nonprofit, from human resources to finance to payroll. Many nonprofits have successfully increased the efficiency of their organizations through sustained collaborations to share administrative infrastructure and operations. When structured thoughtfully, this enables nonprofits to focus a greater amount of their limited resources where they can have the most impact, on programs enhancing communities.
This may benefit you if: You seek to gain economies of scale by sharing administrative functions or your organization is vulnerable to key staff losses in administrative areas.
Stability and survival
It has never been more challenging to lead a nonprofit than it is right now. Many organizations have teetered perilously close to the brink of closure for an extended period of time due to a multitude of factors. While the pandemic didn’t create the financial challenges pervasive in the nonprofit sector, it certainly has laid them bare and exacerbated them.
Nonprofit leaders are working to and often past the point of exhaustion attempting to keep their organizations afloat. This is neither healthy nor sustainable. There is absolutely no shame in exploring collaboration up to merger or acquisition as a tool to survive and continue making a positive impact on the community served.
This may be for you if: Your organization’s business model is no longer viable or streams of revenue have been damaged so extensively that ongoing viability is a concern.
Sustained collaborations are neither easy nor fast, but when entered into thoughtfully, they can provide benefits that allow for an expansion of services, advancement of a common vision, increased efficiency and preservation of organizational impact. Frequently, engaging with an external thought partner can be a helpful first step in exploring a holistic process that will encompass not only the legal and financial due diligence necessary, but also considerations of governance, leadership, and organizational culture. As you approach these conversations, a helpful reminder that healthy collaborations move at the speed of trust, and time spent building relationships are never wasted.
***
Gregory Nielsen, president and CEO of Nielsen Training & Consulting, is an experienced nonprofit CEO and consultant committed to helping leaders and organizations excel. Gregory has earned the prestigious BoardSource Certificate in Nonprofit Board Consulting. He is also a frequent speaker on nonprofit leadership and governance and hosts the podcast “Nonprofit Vision.”
