With nearly two million nonprofits in the United States, you might fear that your organization will just get lost in the shuffle. In response, perhaps you’re tempted to develop a competitive mindset. After all, there are only so many donors and volunteers to go around, right?
While there are certainly times when competition is necessary, it’s far from your only option. Teaming up with other organizations in your space can be a great way of pooling resources and expanding your reach. The key is in determining the right strategy for a given situation.
Check out this guide on how to decide when you should collaborate and when it’s time to embrace a competitive edge.
Know What You’re Up Against
Most of the organizations you are competing against will fall into one of two categories: direct competition and indirect competition.
Direct Competition
Nonprofits with similar missions and operating areas fall into this category. They often compete for the same donors and funding opportunities. These direct competitors can make it harder to hit your fundraising goals. To stay ahead, keep a close eye on their activities. Here are some tips to help you do that:
- Follow them on social media
- Subscribe to their newsletters
- Analyze their annual reports
And don’t hesitate to borrow good ideas. Just make sure to tailor them to your organization’s unique mission and supporters.
Indirect Competition
Sometimes, the competition isn’t so obvious. You might run a nonprofit school, but you’re still competing with food banks, animal rescues, and even your local public radio station for community support.
While collaboration with these organizations can be mutually beneficial, you also need to keep track of their campaigns and events. You don’t want to host a big, expensive event on the same day as another neighborhood entity.
When to Shift to Collaboration
Many nonprofits in your area can become valuable partners. Perhaps a nearby nonprofit serves a slightly different demographic or focuses on a complementary aspect of your mission. Sharing resources with other nonprofits helps with reducing costs and maximizing the impact of both entities.
Find the Right Partners
Collaboration sounds great on paper, but it works best when you choose your partners carefully. Look for organizations that:
- Share your vision and values
- Have resources or connections you lack
- Serve a population or region you don’t currently reach
You can vet most prospective partners by asking the simple question, “What does this entity bring to the table?” You need to ask the same question of your organization.
Keep in mind that just because you are aligned with another entity does not mean collaboration will be smooth sailing. Leaders used to running the show may struggle to share responsibility for decision-making. Before diving in, clearly define who is responsible for what and outline conflict resolution strategies.
The Value of Networking
Even if you never formally collaborate with other nonprofits, building strong relationships with leaders in your sector can be extremely valuable. Networking keeps you informed about trends and opportunities in your community.
However, before you seek out networking opportunities, it’s vital that you ensure your own house is in order. A nonprofit audit can solidify your internal controls and processes, which will position your entity as an appealing partner for prospective collaborators.
Get Ready to Collaborate With an Audit
Contact Ernst Winter & Associates LLP to discuss how you can make the most of your nonprofit’s resources. Our auditing solutions help you promote compliance while also identifying ways to become more efficient. We look forward to assisting your nonprofit in driving meaningful change through responsible resource allocation.