Collaboration Among Nonprofits Advances Measurable Outcomes, New Reports Show

Collaboration among nonprofit organizations has measurable impacts on outcomes, including dramatic expansions in service, increases in funding, and improvements in program outcomes, according to a pair of new reports released by the Sustained Collaboration Network. Roughly three quarters of the collaborations studied showed evidence of success, and the reports provide direct, actionable recommendations for both funders and nonprofit leaders on how to ensure collaboration leads to results. They are among the most thorough examinations to date of how to effectively support nonprofit collaboration.

One of the organizations profiled in the reports is The Asian Youth Center (AYC) in San Gabriel, Calif., in Los Angeles County. AYC was beginning a shift in its programming strategy and as part of that shift they integrated with a program from another local nonprofit. In 2019, before the program acquisition, AYC recorded $2.2 million in contributions and grants. In 2023, their revenue projections were $6 million. After securing additional funding to support the new program, AYC went from serving a couple hundred families in four schools to almost 2,000 families in 12 schools.

“Collaboration is essential to building the shared impact of the nonprofit sector,” said Michelle Shumate, Ph.D., founder and managing director of Social Impact Network Consulting and lead author of the reports. “Collaboration can take many forms and is a tool for building on the strengths of multiple organizations. Funders and nonprofit leaders should know that there are guides, resources, and experts to help them do this well.”

The Sustained Collaboration Network (SCN) is a national network of ten organizations committed to increasing philanthropic support of and investment in sustained collaboration as a meaningful form of nonprofit capacity building. Since 2009, SCN member initiatives have engaged over 100 funders, funded more than 1,600 nonprofits, and distributed over $26 million in collaboration grants.

Other examples of success highlighted in the reports include:

• After merging with a local peer, Rebuilding Exchange in Illinois secured over $1 million in state contracts, for which neither organization alone would have qualified. After doing so it was able to expand its workforce development program from 36 participants to 100.
• Dallas Afterschool and Early Matters Dallas collaborated on a shared program to reduce staff turnover in out-of-school and early childhood provider staff. Together they increased their retention rate from about 50 percent to 76 percent.
• Outreach House in Lombard, Ill., merged with other direct service organizations that were located within a few blocks. Together they now have a better, more accessible facility which offers food, clothes, resources for infants, and emergency assistance. In the first year of the merger their net assets grew from $80,000 to $225,000 and the number of participant visits grew 73 percent.
• Philanthropy California, a state-based alliance of funders, had member organizations that committed to collaboration at the board level. Despite leadership changes in the organizations, after five years of working closely together they were able to advocate for and establish a permanent philanthropy liaison in the Governor’s office. As one practical example, Philanthropy California has become the state’s central coordinating body for recovery from climate and natural disasters.

The reports examine a range of different kinds of collaboration. Most were integrated organizations, which include merging all or part of at least two organizations. But they also cover organizations sharing a program or collaborating on service, as well as organizations acting in alliances or networks.

The 45 collaborations examined in the reports had combined budgets ranging from less than $1 million to over $10 million, are located across the US, and work in myriad areas, including domestic violence, food insecurity, health, education, and the arts. Thirty-three of the collaborations studied (73%) had quantifiable or documentable evidence of success.

The reports also include 20 comparative case studies generated from over 100 analytic interviews along with examinations of financial reports, contracts, and grants. Fourteen of these collaborations had documentable positive outcomes, and the recommendations for funders and nonprofit leaders are grounded in what made these collaborations successful. The data included in the reports were collected in the summer and fall of 2023.

The reports offer specific recommendations for funders to support effective collaboration:

• Use microgrants to educate nonprofit leaders and boards about sustained collaboration;
• Use exploratory or planning grants to fund exploration;
• Link nonprofits to a vetted database of technical assistance and consulting professionals; and
• Commit to long-term, sustained collaboration, as each collaborative effort requires multiple phases of investment to explore, plan, and implement.

As well as lessons for nonprofit leaders and consultants, depending on the type of collaboration pursued:

For integrated organizations:

• Set strategic, shared goals;
• Learn about the possible forms of integration and choose carefully;
• Ensure sufficient operating reserves; and
• Involve board and staff from the beginning.

For shared programming and services:

• Ensure commitment from senior leadership;
• Start small and avoid large risks;
• Evaluate partnerships based on available assets; and
• Build organically, focusing on how assets can meet partners’ needs.

For alliances and networks:

• Let the goal guide the design;
• Acknowledge management dilemmas; and
• Ensure sufficient staffing for the alliance/network.

“This research shows that there are a lot of effective options for collaboration,” said Kate Piatt-Eckert, director of Mission Sustainability Initiative at Forefront, a member of SCN. “Executive directors should talk to their boards about these approaches, consider collaboration as part of strategic planning, and take advantage of the host of resources available to guide them along the way.”

The reports are titled: Unlocking the Power of Sustained Collaboration: Insights from Partnerships for Nonprofits and Consultants; and Nurturing Nonprofit Collaborations: Insights for Philanthropic Funders.

Source: Sustained Collaboration Network

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