Nonprofits have always been champions of working together toward a common good, but in recent years, collaboration between organizations has skyrocketed. This isn’t just a feel-good trend; it’s becoming a strategic necessity. As funding tightens, challenges become more complex, and demands for measurable impact grow louder, nonprofits are finding that going it alone is a recipe for stagnation. Partnering with other organizations—whether through joint programming, resource sharing, or advocacy coalitions—has become an essential strategy for survival and success.
But what’s driving this shift? Why are we seeing more nonprofits merging, forming alliances, and co-creating solutions? In this article, we’ll break down the larger trends pushing nonprofits into more collaborative models and explore the key factors that make partnerships beneficial and necessary.
Trend #1: Shrinking Resources and Increased Competition for Funding
Let’s face it, funding for nonprofits has become a fiercely competitive sport. A 2019 study from the Nonprofit Finance Fund found that 86% of nonprofits faced increased demands for services, but only 50% said they had the resources to meet those demands. To make matters worse, economic instability has tightened the purse strings for many traditional funders, leaving nonprofits scrambling to make ends meet.
This pressure has made collaboration an attractive solution. Organizations are increasingly pooling their resources—whether financial, technological, or human capital—to stretch every dollar further. Strategic alliances that involve sharing back-office operations or co-hosting fundraising events help reduce overhead costs while maximizing impact. Nonprofits are also more likely to win grants when they present a collaborative approach; many foundations now prioritize joint proposals because they signal an efficient use of funds and a commitment to systemic change.
Supporting Data: According to a Foundation Center report, more than half of funders now encourage or require grantees to collaborate, reflecting a major shift in the philanthropic landscape. This funding model rewards nonprofits that can demonstrate how they’ll leverage partnerships to solve broader community challenges.
Trend #2: The Rise of Collective Impact
In the world of social change, “collective impact” has become more than just a buzzword—it’s a powerful framework for addressing deeply entrenched issues like poverty, climate change, and racial inequality. The premise is simple but revolutionary: instead of nonprofits working in silos, they come together under a shared vision and a structured plan, with a “backbone” organization steering the ship.
Collective impact models have gained significant traction, especially in areas where problems are too big for any one organization to tackle alone. A perfect example of this is the Strive Partnership in Cincinnati, which brought together over 300 organizations to improve student outcomes. Their collaborative approach led to measurable progress in academic achievement across the board, proving that systemic challenges require systemic solutions.
Supporting Data: A 2018 Stanford Social Innovation Review study revealed that 80% of nonprofits participating in collective impact initiatives saw improved outcomes, especially in multi-sector collaborations that included private businesses and government agencies.
Trend #3: Technological Advancements Enabling Seamless Collaboration
Tech is a game changer for nonprofit collaboration. The pandemic accelerated digital transformation across the sector, making it easier than ever for organizations to work together, regardless of geography or size. Virtual meeting platforms, cloud-based project management tools, and shared databases have made cross-organizational collaboration not just possible but efficient.
Digital collaboration platforms like Slack, Asana, and Microsoft Teams allow nonprofits to stay in sync, streamline communication, and share data in real-time. This tech-forward approach has made it easier for nonprofits to engage in ongoing partnerships and even collaborate internationally. Before, geographic distance or limited resources might have made these partnerships unfeasible, but now, technology removes those barriers.
Supporting Data: A TechSoup survey found that 72% of nonprofits cited technology as a key enabler of successful collaboration, with tools like video conferencing and shared cloud storage improving communication and project management efficiency.
Trend #4: Nonprofit Mergers and Organizational Sustainability
Nonprofit mergers used to be seen as a last resort for struggling organizations, but the narrative is shifting. Increasingly, organizations are merging as a proactive strategy to enhance their sustainability and expand their reach. These consolidations allow nonprofits to reduce duplication of services, streamline operations, and combine their expertise for greater impact.
Take, for example, the 2017 merger of the AIDS Emergency Fund (AEF) and Positive Resource Center (PRC). Both organizations served the HIV/AIDS community but faced growing challenges in securing funding and maintaining long-term financial health due to changes in healthcare and social service funding structures. These two organizations found that by merging, they could eliminate redundant administrative costs and deliver more comprehensive care to survivors. This isn’t an isolated case. According to a Bridgespan Group study, mergers in the nonprofit sector are up by 20% since 2015, with 80% of merged organizations reporting stronger financial health post-merger.
Supporting Data: A Nonprofit Mergers & Alliances Study found that 71% of nonprofit leaders believe mergers should be more actively considered within the sector, with many viewing them as a path to greater efficiency and impact rather than a sign of weakness.
Trend #5: Cross-Sector Collaboration and the Blurring of Boundaries
Nonprofits aren’t just collaborating with each other; they’re increasingly teaming up with businesses, governments, and academic institutions. This trend toward cross-sector collaboration is creating dynamic partnerships that drive broader, more sustainable change.
Many businesses, motivated by the rise of ESG (Environmental, Social, Governance) criteria, are looking to nonprofits as partners in achieving social and environmental goals. These collaborations can take many forms—from corporate sponsorships to co-created programs aimed at tackling issues like homelessness or education reform. Nonprofits benefit from the influx of resources and expertise, while companies enhance their reputations as socially responsible entities.
Governments are also leaning heavily on nonprofit partnerships, especially as public sector budgets tighten. In areas like public health, education, and social services, governments are contracting nonprofits to fill in service gaps or help implement policy initiatives.
Supporting Data: According to the Business for Social Responsibility (BSR), 73% of corporate leaders see nonprofits as essential partners in achieving their sustainability goals. Meanwhile, a Deloitte study found that 62% of nonprofits that engaged in cross-sector collaboration reported increased effectiveness and innovation.
Collaboration as a Strategic Imperative
The days of nonprofit organizations working in isolation are over. Collaboration is no longer optional; it’s a strategic imperative for survival and growth. Whether driven by the need for funding, the desire for systemic change, or the power of collective impact, nonprofits are increasingly joining forces to tackle the world’s most pressing issues. And as technology, funding models, and social expectations continue to evolve, the nonprofit sector will likely see even more collaboration in the future.
In short, nonprofits that embrace collaboration are better positioned to scale their impact, maximize resources, and create lasting change. The question isn’t if nonprofits should collaborate—it’s how they can collaborate more effectively to achieve their mission. Let’s embrace this trend and lead it, recognizing that by working together, nonprofits can achieve more than they ever could alone.
Whether you’re new to collaboration or looking to optimize your existing partnerships, these tools and insights will help guide your efforts. Here are some excellent resources that will give you valuable insights, frameworks, and case studies. These resources will help give you a deeper understanding of nonprofit collaboration and practical advice on how to form, manage, and measure the success of partnerships.
Stanford Social Innovation Review (SSIR)
- Resource Type: Articles, Case Studies, Research Papers
- Why It’s Valuable: SSIR offers a wealth of information on social innovation, including collaborative models like collective impact and cross-sector partnerships. Their articles often feature in-depth case studies on nonprofit collaborations that have successfully addressed complex social issues.
- Recommended Reading: “Channeling Change: Making Collective Impact Work” and “Essential Mindset Shifts for Collective Impact”
Nonprofit Finance Fund (NFF)
- Resource Type: Reports, Webinars, Research Studies
- Why It’s Valuable: NFF publishes detailed reports on the financial health of nonprofits, including insights into how organizations are using collaboration to survive and thrive in tough funding climates. Their State of the Nonprofit Sector Survey offers a real-time view of the trends impacting nonprofit collaboration.
- Recommended Reading: “Collaboration and Mergers” section in their reports.
- Resource Type: Articles, Toolkits, Case Studies
- Why It’s Valuable: The Bridgespan Group specializes in nonprofit strategy, including mergers and partnerships. They offer practical toolkits and advice on how to approach collaboration, from identifying potential partners to implementing joint programs.
- Resource Type: Tools, Webinars, Case Studies
- Why It’s Valuable: For organizations interested in collective impact, this forum provides a range of tools and resources specifically designed to help nonprofits collaborate for social change. They offer step-by-step guides and case studies from successful collective impact initiatives.
- Recommended Reading: “The Role of Backbone Organizations in Collective Impact” and “The Five Conditions of Collective Impact”
BoardSource: Nonprofit Board Resources
- Resource Type: White Papers, Guides, Tools
- Why It’s Valuable: If you’re interested in the governance side of nonprofit collaboration, BoardSource offers comprehensive guides on how boards can support or initiate collaborative efforts. They also provide resources on strategic alliances and partnerships.
Grantmakers for Effective Organizations (GEO)
- Resource Type: Reports, Case Studies, Research
- Why It’s Valuable: GEO works closely with foundations and nonprofits to improve collaboration. They offer insight into how funders are influencing collaboration trends and how nonprofits can position themselves for collaborative funding opportunities.
- Recommended Reading: “Strengthening Nonprofit Capacity for Collaboration”
TechSoup: Technology for Nonprofits
- Resource Type: Blogs, Webinars, Software Discounts
- Why It’s Valuable: TechSoup provides resources on how nonprofits can use technology to enhance collaboration. From digital tools to webinars on cloud-based collaboration, this platform is perfect for nonprofits looking to leverage tech in their partnerships.
- Recommended Reading: Top Collaboration Tools for Nonprofits
