Balancing Act: Compete or Collaborate in the Nonprofit World?

You've probably collaborated with other not-for-profits that share your space — maybe on a special event or fundraising campaign. Some organizations go further with formal strategic partnerships that involve sharing staff, facilities, and budgets. In other cases, two nonprofits with the same basic mission and values merge permanently.

Although the case for collaboration is easy to make, what about competitive behavior? After all, other nonprofits are competing with you for donations, grants, volunteers, and other resources. When is competition called for?

Direct and indirect competition

The not-for-profit sector is saturated with organizations, so overlap in certain areas is inevitable. Therefore, monitoring and analyzing similar nonprofits makes sense, whether the competition is direct or indirect.

Direct competitors have similar missions and thus target many of the same individual donors and grant makers. This can make it difficult for your nonprofit to meet its fundraising goals. To keep tabs on these competitors, follow them on social media, sign up for their newsletters, and read their annual reports. Don’t be shy about copying a good idea. Just be sure to customize it to your mission and supporters.

Indirect competition is less obvious. But, in the end, all nonprofits compete for limited money, time, and attention. You may run a nonprofit school that competes for community support with everything from other educational institutions to churches, food banks, animal rescue charities, and your local public radio station. If you have opportunities to collaborate with indirect competitors, great! But also make sure you know when they’re scheduling events and campaigns and how they might affect your plans.

Working with the competition

In some instances, organizations that initially appear to be competitors can turn into prospective partners. Maybe a competitor serves a slightly different population or has different geographic reach. In many cases, there’s more work to be done than a single nonprofit can accomplish. If similar organizations have access to resources, supplies, or connections you don’t have — and vice versa — collaboration should be considered.

Just be sure to choose partners carefully and look out for common hurdles. Both organizations should independently arrive at the decision to join up, and the key people involved should share goals and working styles. Disagreements between former competitors, particularly between leaders used to calling the shots in their own organizations, are inevitable. So before you begin work, outline individual responsibilities and plan how to resolve impasses.

Networking is criticalAt the very least, maintain good working relationships with other nonprofit leaders. Even if collaborative opportunities never quite pan out, you can only benefit from keeping your finger on the pulse of your geographic and charitable communities.

Nonprofit organizations often collaborate with others in their field, such as for special events or fundraising campaigns. Some go further by forming strategic partnerships that involve sharing staff, facilities, and budgets. In other cases, two nonprofits with similar missions and values may merge.

Although collaboration has benefits, competition among nonprofits for donations, grants, volunteers, and other resources can also occur. Understanding when competition is appropriate is important.

Direct and Indirect Competition

The nonprofit sector includes many organizations, leading to overlap in some areas. Monitoring and analyzing similar nonprofits, whether direct or indirect competitors, is useful.

Direct competitors have similar missions and target many of the same donors and grant makers, potentially making it difficult to meet fundraising goals. To monitor these competitors, follow them on social media, subscribe to their newsletters, and read their annual reports. Adopting successful strategies from competitors can be beneficial if tailored to your organization's mission and supporters.

Indirect competition is less obvious but still involves competing for limited money, time, and attention. For example, a nonprofit school might compete for community support with other educational institutions, churches, food banks, animal rescue charities, and local public radio stations. Collaborating with indirect competitors can be advantageous, but it's also important to be aware of their event schedules and campaigns as they may impact your plans.

Working with Competitors

Sometimes, organizations that seem like competitors can become partners. For instance, a competitor may serve a different population or have a different geographic reach. Collaboration should be considered if similar organizations have access to resources, supplies, or connections that your organization lacks, and vice versa.

It is important to choose partners carefully and anticipate common challenges. Both organizations should independently decide to collaborate, and key individuals involved should share goals and working styles. Disagreements between former competitors are possible, so outline individual responsibilities and plan how to resolve conflicts before starting work.

Networking is Critical

Maintaining good working relationships with other nonprofit leaders is essential. Even if collaborative opportunities do not arise, staying informed about your geographic and charitable communities can be beneficial.