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Nonprofit Collaboration Models: One Size Doesn’t Fit All

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This the second in a series of articles on building collaborations in the nonprofit community. See Article 1 here.

Managing your nonprofit in an era where there seems to be increased competition for charitable giving can be challenging, to say the least. For some nonprofits, working in a nonprofit collaboration model with other organizations may provide much-needed inspiration and support to unite their common business purposes and advance them to the next level. Whether the idea of working with another nonprofit starts with the board, staff members, stakeholders or donors, the options listed below provide some nonprofit collaboration models to possibly make that happen.

Some research studies have shown eight different models of nonprofit collaboration. This article describes the four of those methods. As you read through the pros and cons of each model, you may recognize a scenario that will fit your nonprofit strategy — the advantage being that nonprofit collaboration is not a one-size-fits-all concept, but can be uniquely tailored to the specific characteristics of organizations that want to work together.

Fully Integrated Merger

Emerging as the most widely-used option, this nonprofit collaboration model fully integrates the operations and missions of two or more organizations. One organization typically merges with another, allowing the corporate status and charitable exemption of one of the partners to remain intact. Or the partner nonprofits can agree to create a newly formed single organization as well.

This model works when there’s a true overlap in the missions of both organizations as well as similarities in programs and services. It’s an effective model to limit the duplication of services in the community. The benefits include increased efficiency in program delivery and greater access to resources. Challenges can include problems with bringing together two or more organizations with different histories and cultures along with the task of creating a new leadership and board structure.

Partially Integrated Merger

This model allows for a merger of two organizations while allowing each to retain their individual brand. The defining characteristics of each nonprofit are maintained, allowing the strategic advantages of both organizations to stay in place.

This nonprofit collaboration model works when a stronger or larger organization provides support to a less developed or smaller organization with the same or similar customer base and services. The smaller partner will see increased resources, stability and capacity, and in exchange they can help augment the amount and range of services that the larger partner currently offers. The biggest advantage of this model is that the community will see less competition and overlapping of services, but there’s a risk that the larger partner could overshadow the identity of the smaller organization and the merger could appear to be a takeover rather than a partnership.

Joint Program Office

A merger may not fit the needs of two organizations that have similar missions. However, if there’s an overlap in some programs or services, creating a joint program office model could combine one or more similar programs offered by each nonprofit. The goal would be to strengthen the efforts of that particular program for both organizations.

This model works when the organizations have programs and services that are similar but not exactly the same. It can result in a more efficient use of resources while allowing the collaborators to retain their independence. A challenge could be figuring out how to share program staff from each nonprofit and developing clear rules about program fundraising, strategic direction, and operating expenses.  

Joint Partnership with Affiliated Programing

In this model, nonprofit collaboration results when multiple nonprofits establish a partnership to share programs or delivery of services, allowing them to maximize their complementary strengths.

This model works when two or more organizations have a shared mission but don’t provide the same services. This can result in a more efficient use of community resources, less fragmentation of services, and the ability to provide more services to a broader group of clients. However, it can be quite a challenge to determine the degree of credit each partner can claim for the outcomes when reporting to their separate and shared stakeholders.

Wrap-Up

Did you find some new ideas in these four nonprofit collaboration models? What about a combination of models? Next time we’ll explore four additional models of collaboration for nonprofit organizations.

Additional resources:

Information in this article was taken from Models of Collaboration: Nonprofit Organizations Working Together. The Collaboration Prize.

Nonprofit Collaboration 2.0

Why and How do Nonprofits Work Together? 

Thinking About Collaborations? 5 Tips to Get Started

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The fun for me in collaboration is, one, working with other people just makes you smarter; that’s proven. Lin-Manuel Miranda

Do you ever feel a little isolated and alone as a small nonprofit in a vast sea of bigger fish? Or are you struggling with your limited time and resources to boost your nonprofit but have run low on ideas or inspiration? For many nonprofits, building collaborations with other similar organizations can be a mutually productive way to achieve greater impact than by working on their own.

One research study showed that 91 percent of nonprofits engage in some form of collaborative relationship for a variety of reasons. That seems rather high, but it might depend on the type of collaborations that have been formed. In fact, three main reasons to engage in a collaborative relationship include (1) to boost organizational efficiency, (2) to increase organizational effectiveness, or (3) to drive broader social and systems change (Simonin, Samali, Zohdy, Laidler-Kylander, 2016).

A collaboration can result in shared services, joint programming, collective events, problem solving correlated issues, and exposure to fresh perspectives along with innovative solutions. Some might even result in a complete merger of organizations. In an increasingly challenging atmosphere for nonprofits, cultivating collaborations can be a smart idea.

Here are five ways to start thinking about forming a collaboration with other nonprofit organizations to strengthen capacity and the potential for a more sustainable future.

1.Understand What You Want from the Collaboration

An organization should determine what they want from the collaborative relationship before getting started. Identify clear goals organization goals for the new relationship. What needs could a relationship with another organization assist?  What strategic benefits could become a reality through an alliance with one or more partners? Would the relationship be ongoing or for a particular length of time? Start with an internal analysis of your organization to determine how a collaborative relationship would be beneficial. This also helps you determine the partners that would be the best for you to approach when you’re ready. 

2. Get Your Ducks in a Row

What will your organization bring to the table in a collaboration? Are you strong and clear on your mission? Is your board working harmoniously and providing good governance? Are operations in order or are there programs or services that need to be revised or even eliminated?  Do you understand your financial position and potential? These are just some of the questions to ask prior to going into a collaboration. You don’t have to be perfect before exploring collaborations but you need to know what you bring to the table to work from a position of strength. 

3. Start Small to Test the Waters

Instead of jumping into a collaboration with two feet, an option is to start small with a short-term relationship to test the waters. For instance, can you work together on an event? Can you share a resource to build capacity in a particular area of operations? Starting with a small project or event gives you time to assess the potential partnership. See if you work well together. Do your missions actually mesh well? Can your people get along with each other without conflict? You’ll have a better sense if an actual collaboration will be beneficial or not. The collaboration can grow into something more extensive based on the outcomes of an initial short encounter.

4. Understand Your Why

Collaborations are a means to an end—not an end in itself. In other words, be clear on why you’re forming a collaboration. Are you finding a way to increase your resources? Will this allow a more powerful impact on a particular social problem? Will both organizations be more effective than working alone? Being clear on your “why” let’s you form the appropriate type of partnership with others. You get away from a cookie-cutter idea of how the collaboration should look and design what brings you to your goal.

5. Start Looking for the Right Partner

Who in your environment might make a good partner and why? That’s one of the big questions to start asking as you ponder collaborations. Get both leadership and board involved in looking around to see how you and other organizations might complement, enhance, or correctly diversify each other. Consider the core competencies of your organization and those of an organization you’d like to consider as a partner. Core competencies are what you do best, and often better than anyone else. How does this connect with a social need in the community being served by a compatible organization? Would working together help move the social change you envision forward?  If so, you might have identified a potential partner to start your collaborative efforts.

Building collaborations doesn’t happen overnight . . . but if you don’t get started thinking about and planning them, they won’t happen at all. Use these 5 tips to help you start thinking about how to start the collaborative process.

Additional Resources:

Simonin, Samali, Zohdy, Laidler-Kylander. (2016) Why and How Do Nonprofits Work Together? https://philanthropynewsdigest.org/columns/the-sustainable-nonprofit/why-and-how-do-nonprofits-work-together

Taylor (2017) Hacking Nonprofit collaboration.  https://ssir.org/articles/entry/hacking_nonprofit_collaboration

Nonprofit Board Governance

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Have you heard these statements?

  • “Nonprofit Boards of Directors must practice good governance.”
  • “The nonprofit is governed by its Board of Directors.”

The topic of nonprofit Board governance can be confusing, mostly because this important concept may not be fully understood. In general, governance brings together policies, systems and structures that provide support to Board members in making good decisions for the nonprofit according to expectations of the public trust.

Right there, you see that the topic can get confusing. It might help to know that governing a nonprofit is different from governing a for-profit organization. Nonprofits serve a public purpose without benefiting any particular individual. Therefore, the basic goal in governance for nonprofits focuses on protecting and furthering the mission of the nonprofit. However, the goal of a for-profit company is to generate income for the company, employee and shareholders.

Nonprofit boards are considered “Stewards of the Public Trust”, which signifies the general public trusts that a nonprofit is fulfilling its mission as stated to the IRS when it was granted exemption status as a nonprofit organization. The Board has three primary responsibilities: Duty of Care, Duty of Loyalty, and Duty of Obedience.

Duty of Care means the Board will make decisions with the same level of care as each member would for their own personal assets (even though board members have no personal assets in the nonprofit).

Duty of Loyalty means the Board puts the needs of the organization and the population that it serves above all other needs, especially the individual’s or group’s personal agenda.

Duty of Obedience means the Board will maintain compliance with all legal standards and regulations required for the exempt organization, including annual filings with state and federal agencies.  

A 2017 study on Boards of Directors showed that 56 percent of nonprofit Boards struggle with weak Board governance. As a result, approximately 52 percent of nonprofits are unable to expand their impact because of a weakness in strategic thinking such as developing a mission, strategy, impact evaluation, or insight by their Board.

What should be noted, however, is that these limitations are most likely not the fault of the Board members. Instead it’s more a matter of “you don’t know what you don’t know!” Without a doubt, those serving on a nonprofit Board have every intention of doing the right thing, making the right decisions, and being a good steward of the organization. But like coming into anything for the first time, Board members need to learn how to effectively govern a nonprofit and serve as a productive Board member. That takes information, training and dedication.

Spokes is always here to assist nonprofit Boards with the development of policies and procedures as well as providing an understanding of the legal and ethical responsibilities of the Board. Visit our website at https://www.spokesfornonprofits.org/services/just-for-board-members/ to learn more about the resources we have available to provide local nonprofit Boards with the management training, consulting and resources they need to better serve our community.

Resources about Nonprofit Board Governance:

Good Governance Policies for Nonprofits: https://www.councilofnonprofits.org/tools-resources/good-governance-policies-nonprofits

Study: Most Nonprofits Lacking in Leadership, Management http://www.thenonprofittimes.com/news-articles/study-nonprofits-lacking-leadership-management/

How to be an Excellent Board Member

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Register Now!

Local nonprofits need and want trained Board members who understand their responsibilities in nonprofit governance and how to support their nonprofit Executive Director. Our annual survey of nonprofit member organizations shows how paramount the desire for effective and well-informed board members truly is. Every nonprofit organization needs a Board of Directors and with the large amount of nonprofits in San Luis Obispo County, that means many community volunteers are needed to serve on nonprofit boards.

A 2018 Nonprofit Board Leaderships Study by Korngold Consulting, LLC and IMPACT 2040 found that business professionals that serve on a nonprofit board of directors “listen more carefully to different viewpoints, create more inclusive teams, and make more inclusive hiring and promotion decisions.” Comments from participants in the research noted that working with people from diverse backgrounds helped participants learn to solve problems by working together through healthy debate. Additional benefits are the board participants become more confident, better leaders, who are able to accept more responsibility and feel better qualified for promotion (McClimon, 2019). 
 
Serving on a board is important, but being a board member that brings excellence to the position is another step. In 2018, Spokes created a new signature program to respond to the need of San Luis Obispo County nonprofits for more trained Board members. The Board Academy is the first intensive board training for nonprofits on in San Luis Obispo County. The first academy was held in October, 2018 with 17 participants representing 12 different nonprofits.

The next Board Academy will be held on Saturday, March 23 from 9:00 am to 5:00 pm at Spokes. Lunch and snacks will be served and each participant will receive a binder of materials to take back and share with their board. You can expand your knowledge and be a board member of excellence by participating in the Board Academy. Register here.

Seven topics pertinent to the education of all nonprofit board members will be covered including an overview of the nonprofit sector nationally to locally, financial management and fiduciary responsibilities, insurance and risk management, legal and ethical responsibility of the Board, governance issues, board and executive Director interactions and fundamentals of fundraising. 
 
Resources: 

Beacon Economics (2013) Central Coast Economic Forecast. McClimon, T.J. (2019) Nonprofit Board Service Builds More Effective Business Leaders https://www.forbes.com/sites/timothyjmcclimon/2019/01/14/nonprofit-board-service-builds-more-effective-business-leaders/#22b7384c31a9

 
Takagi, G. (2009) Number of Directors – What’s the Best Practice? Nonprofit Law Blog.  http://www.nonprofitlawblog.com/number-of-directors-whats-the-best-practice/

Does Your Board Work or Govern?

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Do you know if your board is a working board or a governing board? Although we use these terms all the time, this is a trick question! All boards are governing boards. Their first and foremost responsibility is managing the organization: making policy and strategy decisions, overseeing and monitoring organizational performance, and ensuring accountability. Volunteer-run or small-staffed organizations’ board members may also have working responsibilities in addition to governance responsibilities, such as program delivery. Because program delivery is often the most fun part of the job, it’s natural to want to focus your time and energy on direct service.

However, things get sticky when procedures, policies, and roles aren’t clearly defined. When board members disagree on the difference between the “must do” responsibilities and the “nice to do” activities, it can cause friction or result in compliance issues.

It may be time to review your activities and ensure that governance comes first if:
• your board meetings continually go off topic,
• committee updates take more than ten minutes of a board meeting, or
• your board spends more time discussing details than big picture items.

Spokes’ Board Academy provides the perfect opportunity to explore:

• Board Member roles and responsibilities
• Governance to achieve your mission
• Legal responsibilities of board service

Whether you’ve served on your board for one year or ten years, this training will give you new tools and knowledge to make your board function more effectively.

Want to learn more about working versus governing boards? Compass Point has more to say on the subject here: https://www.compasspoint.org/board-cafe/working-board-vs-governing-board

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