“Teamwork makes the dream work!”
It’s a phrase we often use to encourage cooperation, especially when we’re trying to bring people together to achieve a common goal. In the nonprofit sector, the call for collaboration has grown louder over the years. Funders recognize that working with other organizations can stretch limited philanthropic resources, mitigate the risk of duplicating services, and potentially achieve better outcomes through joint efforts.
I’ve seen collaborations between nonprofits come and go. Some partnerships endure over time, while others, though impactful, falter once funding dries up. True collaboration can be transformative when partners are motivated by a shared purpose of improving the lives of those they serve. However, as many funders might admit, some collaborations are formed out of convenience or feel more like arranged marriages—designed to keep funding streams open rather than to create meaningful change.
The nonprofit sector does, in fact, need to be more collaborative. Many organizations serve overlapping client bases. A person seeking help from a homeless shelter may also need job training, clothing, mental health support, medical care, and early childhood education for their children. No single agency can effectively provide all these services, making collaboration essential for addressing complex social challenges.
Funders have a unique role to play in fostering these partnerships. They can offer support throughout the stages of collaboration, but they also carry the responsibility of ensuring that these efforts are successful. Effective collaboration requires time, trust, and training, which means investing not just in the projects themselves but also in building the capacity of agencies to work together. Shifting the mindset from competition to cooperation is key if nonprofits are to unite in pursuit of shared goals.
Effective collaboration requires time, trust, and training, which means investing not just in the projects themselves but also in building the capacity of agencies to work together.
To successfully foster more collaboration within local communities, funders must address two key questions: (1) What does “collaboration” specifically mean in this context? and (2) Does your grantmaking strategy effectively support and encourage collaborative efforts?
Understanding the Differences: Referrals, Partnerships, Collaborations, and Collective Impact
In the nonprofit sector, the terms referrals, partnerships, collaborations, and collective impact are often used interchangeably, but they each represent distinct levels of coordination and cooperation between organizations. Understanding the differences between these concepts can help nonprofits and funders better structure their efforts and achieve more meaningful outcomes.
As funders aim to encourage collaboration among nonprofits and offer support for such initiatives, it’s important to clearly define what working together means. Collaboration can take many forms, and all levels of engagement have value within the sector. Therefore, when encouraging organizations to collaborate for the benefit of the community, funders should specify the types of engagement they expect—or don’t expect—when providing funding or prioritizing nonprofits that claim to be partnering with others to achieve shared goals. Below are examples of different levels of collaboration within the nonprofit sector:
Referrals
Referrals are the simplest form of cooperation between organizations. One organization directs a client to another for a specific service that they don’t provide.
Example: A food pantry referring a client to a job training program at a different organization.
Key Characteristic: There is minimal ongoing interaction between the two organizations beyond ensuring the client gets the services they need. The relationship is often transactional and focused on the individual’s immediate needs.
Partnerships
Partnerships involve a more formalized relationship between two or more organizations working together toward a shared goal. These partnerships may be strategic and involve agreed-upon roles and responsibilities.
Example: A homeless shelter and a mental health clinic partner to co-host workshops for their shared clients.
Key Characteristic: Partnerships typically involve a specific initiative or program, with clear, shared objectives and mutual benefits. However, the level of integration between the organizations can still be limited to a specific project or time frame.
Collaborations
Collaborations represent a deeper level of cooperation than partnerships. In a collaboration, organizations work together closely to co-create and implement programs, share resources, and problem-solve together.
Example: Several nonprofits pooling resources to create a comprehensive support network for at-risk youth, including educational, housing, and job support services.
Key Characteristic: Collaborations often involve a higher degree of trust and interdependence. Organizations share decision-making, coordinate services, and are often working toward long-term outcomes. These relationships tend to be more integrated and sustainable than simple partnerships.
Collective Impact
Collective impact is a highly structured form of collaboration, where organizations from different sectors come together to solve a complex social problem. This approach involves multiple organizations aligning their efforts under a common agenda, using shared measurement systems, and often relying on a “backbone” organization to coordinate the initiative.
Example: A citywide initiative to reduce homelessness involving nonprofits, local government, businesses, and educational institutions, all working together with a unified strategy.
Key Characteristic: Collective impact requires a long-term commitment and often involves cross-sector cooperation. It is built around a common goal with continuous communication, shared metrics, and a dedicated infrastructure to manage the collaboration. Collective impact aims for systemic change, addressing root causes rather than just symptoms.
Keys for Funding Sustainable, Collaborative Efforts
Funders must manage their expectations when it comes to fostering collaboration among nonprofits. While in some cases acting as a matchmaker can lead to incredible outcomes, in others, it can be an overstep or exert undue pressure, leading to strained partnerships or forced cooperation. A thoughtful approach is key to ensuring meaningful and sustainable collaboration. Below are the essential elements that contribute to successful collaboration:
Collaboration Takes Trust
Trust is the basis of any successful collaboration. Organizations need to feel confident that their partners will honor agreements, share resources fairly, and respect the boundaries and values of each entity involved. Building this trust doesn’t happen overnight. It requires funders to support open communication, transparency, and mutual respect among collaborating organizations. Funders can help by encouraging relationship-building activities and allowing nonprofits the space to develop organic partnerships instead of forcing connections.
Collaboration Takes Time
Genuine collaboration is a process that takes time to develop. Organizations need time to align goals, establish roles, and overcome logistical and cultural differences. Funders should recognize that partnerships don’t produce immediate results, and rushing the process can lead to superficial collaborations that fall apart under pressure. Funders can support their partners by offering multi-year grants and avoiding rigid timelines that don’t account for the time needed to build strong, effective collaborations.
Funders should recognize that partnerships don’t produce immediate results, and rushing the process can lead to superficial collaborations that fall apart under pressure.
Collaboration Takes Investment
Successful collaborations require both financial and non-financial investment. Funders should not only provide funding for the collaborative project itself but also invest in the infrastructure needed to sustain it, such as staff capacity, technology, and training. Beyond financial support, funders can invest in creating opportunities for capacity building, facilitation, and shared resources that enable organizations to collaborate more effectively. By investing in the long-term health of these partnerships, funders help create a stable foundation for lasting impact. In most cases, a one-time $50,000 grant is unlikely to generate lasting, sustainable change within a community.
Drive Impact Through Meaningful Collaboration
By understanding and supporting the need for trust, time, and investment, funders can help create the conditions for meaningful collaboration that benefits both nonprofits and the communities they serve. If funders seek to encourage and foster collaboration, they must be specific in what they want to see and support agencies along their journey of working together and building trust—while supporting the important infrastructure that is needed to have a collaborative mindset.
Want to learn more about how you can create more meaningful change in your community through partnerships? Check out our webinar, Partnerships, Collaboration, and Collective Impact: A Funder’s Role in the Continuum of Nonprofit Collaboration.
