Should Your Nonprofit Partner?
Key questions to ask before deciding to collaborate.
Outi Flynn
Forward-thinking nonprofits have learned that collaborating or partnering with other organizations does not have to mean the loss of independence or lack of capacity to remain self-sufficient. The best collaborations reflect the values both organizations hold dear. Here are some questions your board should ponder when considering a collaboration.
What's in it for us?
Collaboration may be a strategy to stretch your limited resources a little further. For instance, sharing receptionists or other support staff reduces expenses by cutting administrative costs and may help improve the bottom line.
But cost cutting is not the only reason to seek collaboration. Developing joint programs—and combining fundraising efforts with another charity as part of the process—may help you find more money to reach more constituencies. Affiliating with others also allows you to share expertise and learn from each other.
Can we live with the consequences?
Sharing resources and information inevitably opens your organization up for more opinions and scrutiny. Are you willing to compromise when appropriate and necessary? As the organization's fiduciary body, the board needs to understand and manage the liability associated with certain types of collaborative activities. Collaborations are not free. The board needs to take into account not only financial investments and returns, but human resources as well.
From the Forest to the Trees
You should thoroughly dissect any specific plans and pose numerous questions to help uncover potential pitfalls. To help ensure success, take a good look at the following issues:
Mission, your most valuable guide. A collaboration should not obstruct your efforts to accomplish your mission or undermine your reason for existing.
Constituencies, your main patrons. Because you have put a lot of effort into building a strong constituency base, you want those constituencies to know that they can count on you to continue to provide high-quality services.
Reputation, your key intangible asset. An unfortunate collaboration can ruin your reputation and the good will you have created among your stakeholders.
Donors and funders, your main supporters. Help your donors understand your role in the collaboration and whether it affects your other ongoing activities. Some funders encourage collaborations and are willing to underwrite the costs of figuring them out. Others may be hesitant to invest in an unknown, complicated joint effort. Do not underestimate the importance of building a strong case.
Accountability, your sharing of responsibility. Be clear about who is responsible for what, and clarify what the sanctions are if this trust is broken. When organizations share duties, tasks, and expectations, they should believe that everything will be accomplished according to agreed-upon standards.
Collaboration agreement, your memorandum of understanding (MOU). Your MOU with your partner should not only explain how you share responsibilities and accountability, but should also give guidance on how to proceed if things don't work out. How will you settle disagreements and define a compromise? Also, clarify who makes decisions during emergencies.
Being strategic about your options, constantly exploring new ways to accomplish your work, and learning flexibility are essential tools when seeking traditional or unconventional relationships with other organizations. In the end, your boardroom is the place where guidelines should be defined and the greenlight gets switched on.
Outi Flynn is director of the knowledge center at BoardSource (boardsource.org), a nonprofit organization that provides resources and governance training to leaders of nonprofit organizations. Flynn's areas of expertise include overall sector issues, dilemmas that concern nonprofit leaders on a daily basis, and structural and procedural challenges.
