The Benefits and Risks of Partnerships

When it comes to considering or developing nonprofit partnerships, I have one rule – never develop partnerships to chase funding.

Having started with the importance of not chasing funding, the reality is most nonprofit organizations do require outside funding support to better fulfill their mission. In my experience, the most effective strategic partnerships serve your mission first, but with the understanding that there is increased leverage to be gained. Collaborations can be tremendously effective for organizations looking to amplify outcomes, gain efficiencies, or expand services. 

I group partnerships into two buckets, Common Cause and Common Need. Common Cause partners share your targeted population or outcome. For example, you may share a target population of school-aged youth, an effort around eliminating homelessness, or a geographic area of service. Common Need partners, on the other hand, share a need for resources. You may have little to no overlap in your services with a prospective partner but share a need for a particular resource like professional development, transportation, or administrative services.  

Partnerships come in a variety of options along a continuum of connectivity, as shown in the graphic above. There are numerous ways to frame collaborative efforts; this is only one. Since we want your collaborations to add value, only you can determine the best place along the continuum for your partners. You likely will develop and maintain multiple partnerships at different points on the continuum. Partnerships can also move back and forth along the continuum, depending on the partner organizations’ changing needs. 

The best partnerships are those that strengthen the work of all involved. In a 2019 study, the Stanford Social Innovation Review (SSIR) found that “of the collaboratives that failed or faltered, the most often mentioned challenge was lack of strategic clarity. This included misaligned goals or investment thesis, unclear or misguided strategies, and a lack of winnable milestones along the way.” 

Want a quick way to check the potential strategic clarity of a partnership? Plot the prospective partnership on your program or project logic model. Is there alignment in needed resources or your planned activities, outputs, or outcomes? If yes, then there is potential value in pursuing the partnership. If no, rethink your motivation. What is the value of the collaboration for your organization and the problem you work to solve? If you are new to partnership development, you may want to start with a limited cooperation effort around a looser relationship like advocacy before intertwining operational details. 

MarylandHall, a space for creating art in my former home of Annapolis, MD, partners with multiple local organizations. Their mission, Art for All, requires extensive outreach into the local community. So, Maryland Hall has nine outreach partners that help them achieve their mission in ways they could not accomplish alone, and also strengthens the outcomes of their partner organizations. 

While I did say earlier to never develop partnerships to chase funding, grantmakers and other funders like to see strategic partnerships that reduce duplication of services, strengthen sustainability, and solve problems. You have likely noticed that most grant applications today ask some version of the “do you partner” question. You will strengthen your proposal with strategic partnerships that demonstrate thoughtful, mission-centered effects on operations and outcomes for the people or issues you serve.  

Strategic partnerships can provide more value to the people or places you serve. However, to steer clear of the stumbling blocks noted by SSIR, follow these basic concepts. 1. Get clear on what is and isn’t included in the partnership. 2. Confirm demonstrated value for all participants. 3. Create written agreements; no surprises wanted.  4. Identify how you will measure success. 5. Develop an ongoing communications plan. 6. Steward your partnerships regularly to check progress against the identified measures of success and with an eye to continuous improvement. 

For an in-depth roadmap to developing and stewarding successful strategic partnerships, I recommend the community toolbox developed by the University of Kansas. 

Strategic partnerships are just one way to strengthen your work and add value for the people or places you serve. If you are interested in learning more about ways to enhance your work, join us at the Annapolis Nonprofit Networking group on the third Thursday of each month. This free, collaborative learning group helps nonprofit professionals, board members, and volunteers like you. We are virtual now, so no matter where you are in the world, you can jump in.