Should your Nonprofit Compete, Collaborate or Both?

Navigating the nonprofit sector is no small feat. With limited resources and numerous organizations vying for donors, volunteers, and grants, nonprofit leaders often face a critical question—should you compete, collaborate, or a bit of both? The answer isn’t always straightforward, as success often lies in striking the right balance.

Whether you’re a nonprofit leader, a social entrepreneur, or a community advocate, this guide will explore how competition and collaboration coexist in the nonprofit sector. We'll break down when to compete and when to collaborate effectively so you can maximize your impact.

Nonprofit Collaboration in Action

You’ve likely worked with other nonprofits in your space before—a joint fundraising campaign, a shared community event, or even pooling resources to tackle a shared goal. Collaboration can take many forms, from informal partnerships on a one-off project to formalized alliances like shared staffing, facilities, or even fully merging organizations.

Examples of collaboration include:

• Strategic Partnerships: Two organizations with aligned missions agreeing to share resources for greater impact.
• Coalitions: Groups of nonprofits advocating for a shared cause, leveraging collective voices to achieve policy change.
• Mergers: When two nonprofits formally combine operations and resources to streamline services and broaden their reach.

Collaboration is more than just teamwork—it's about amplifying each other’s efforts and achieving what might not be possible independently. But this begs a pivotal question—what happens when nonprofit organizations are working in the same space and competing for the same finite funds, volunteers, and supporters?

The Case for Competition

Competition in nonprofits often gets a bad reputation, but it can foster innovation, efficiency, and growth. While it may feel awkward to think of nonprofit organizations “competing,” the reality is that many are vying for limited resources—whether that’s donor dollars, government grants, or volunteer hours.

Direct vs. Indirect Competition

To leverage competition effectively, it’s important to understand its dynamics. Nonprofits encounter two key types of competition:

1. Direct Competition: Competing nonprofits with similar missions, targeting the same donor base, grants, or service audience.

• Example: Two animal rescue nonprofits in the same city seeking funding from the same regional foundation.
• Solution: Stay informed. Track direct competitors by analyzing their social media, newsletters, and annual reports. If they’ve launched a successful initiative, adapt the concept to fit your mission.

2. Indirect Competition: More subtle but equally significant, nonprofits across different causes compete for the same pool of philanthropic dollars and time.

• Example: A local food bank competing with a public radio station for year-end donations within the community.
• Solution: Monitor other organizations within your geographic or donor base and take note of their campaigns, events, and fundraising cycles.

Competition, in any form, helps nonprofit leaders see how their approach stands out—and where they might fall short.

From Competitors to Collaborators

Here’s the good news—not all competition has to stay adversarial. Sometimes, nonprofits that seem like competitors on the surface make excellent partners. Collaboration with “competitors” can increase your reach, introduce you to new audiences, and pool resources for collective goals.

Collaboration Opportunities

Start by identifying common ground. Consider these ways to turn competitors into allies:

• Serve Different Populations: If your competitor focuses on a slightly different demographic or geographic location, pool efforts to serve a broader reach.
• Fill the Gap: Does your organization lack something they have or vice versa? For instance, one nonprofit may have a strong volunteer base but lack funding, while the other has financial support but is in need of volunteers.
• Address Larger Needs: Some challenges are simply too big for one nonprofit to tackle. By joining forces, you can address systemic issues more effectively.

Tips for Smooth Partnerships

While prospects of partnership are exciting, they’re not without challenges. To set your collaboration up for success:

• Choose Wisely: Both organizations should align in mission, values, and goals.
• Delegate Clearly: Have a written agreement detailing responsibilities, timelines, and leadership roles.
• Prepare for Disagreements: Create a plan for conflict resolution in case disagreements arise.

The Power of Networking

Even if formal collaboration or competition isn’t on your radar, maintaining strong networks is invaluable. Building and nurturing relationships with fellow nonprofit leaders keeps you informed about your community’s needs and opportunities. Networking benefits include:

• Discovering unseen partnership opportunities.
• Sharing insights, trends, and strategies.
• Boosting your nonprofit's visibility in the sector.

Attend conferences, join alliances within your niche, or even introduce yourself to direct competitors. These connections may evolve into impactful collaborations in the future.

How to Balance Competition and Collaboration

The key lies in striking a balance between competition and collaboration based on your organization’s circumstances. Consider questions like:

• Are potential partners competing for the exact same donors, or does their focus slightly differ?
• Are there gaps in your resources or abilities that could be filled by collaborating?
• How can competitive pressure drive innovation in your fundraising campaigns or program delivery?

Ultimately, a successful nonprofit thrives on a mix of competing where necessary and collaborating where possible.

Strengthen Your Nonprofit Today

Both competition and collaboration have their place in the nonprofit sector. Understanding how to leverage each effectively is a vital skill for nonprofit leaders. Keep your organization’s mission at the heart of your strategy and remember—whether you choose to compete or collaborate, the ultimate goal is the greater good.

Looking for expert guidance to strengthen your nonprofit organization? Reach out to the team at SD Mayer & Associates. We’re here to help with actionable strategies designed for nonprofits just like yours. Contact us today to discuss your goals.