Collaboration is the New Competition for Nonprofits
According to the Internal Revenue Service, there were over 1.5 million registered nonprofits as of December 2011, and nearly 60% have revenue of under $100,000. Even if you divided that up equally among all 50 states, that’s 30,000 nonprofits per state.
Take that in for a second.
Nonprofit organizations are filled with the very best people you would ever hope to find: hardworking, passionate, committed to making a difference. Doing everything they can on a daily basis to lessen the negative impact of various social crises. All while fighting the odds of too little time, money and manpower to affect the real kind of change they want to see around their particular issues.
While growth in the nonprofit sector may reflect a more noble nature among us all, the result is increased competition for limited resources. This reality means we’re looking at more nonprofits competing for the same dollars to treat more symptoms — without necessarily solving the underlying problem.
Attacking the root problems that are causing a preponderance of negative social conditions demands not more organizations developing more programs, but more organizations coming together and building the kind of scale that can address the real problem. This type of collaboration can take place in several forms:
- Nonprofits that partner with each other in community initiatives around an issue
- Nonprofits that formally merge with other nonprofits that share a similar mission
- Nonprofits that build programs that can be replicated by other nonprofits in the country
Whatever the model, one thing is certain. We will never break the cycle of social ills that exist in our country until we step out of a parochial, separatist mindset and acknowledge that collaboration is the only way forward. A simple concept, but one that falls short of execution all too often, given too many competing agendas.
I’ll stop at that, and leave you with this look at two models for consideration. Which do you think has the most potential to solve the big problems that plague our communities? I’d love to hear your thoughts.























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