How To Manage Nonprofit Competition
You’ve probably collaborated with other nonprofits that share your space — maybe on a special event or fundraising campaign. Some organizations go further with formal strategic partnerships that involve sharing staff, facilities, and budgets. In other cases, two nonprofits with the same basic mission and values merge permanently.
Although the case for collaboration is easy to make, what about competitive behavior? After all, other nonprofits are competing with you for donations, grants, volunteers, and other resources. When is competition called for?
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Direct And Indirect Competition In The Nonprofit Space
The nonprofit sector is saturated with organizations. In fact, according to Techreport, today, there are more than 1.5 million nonprofit organizations registered in the United States. Needless to say, ovverlap in certain areas is inevitable. Therefore, monitoring and analyzing similar nonprofits makes sense, whether the competition is direct or indirect.
Direct competitors have similar missions and thus target many of the same individual donors and grantmakers. This can make it difficult for your nonprofit to meet its fundraising goals. To keep tabs on these competitors, follow them on social media, sign up for their newsletters, and read their annual reports. Don’t be shy about copying a good idea. Just be sure to customize it to your mission and supporters.
Indirect competition is less obvious. But, in the end, all nonprofits compete for limited money, time, and attention. You may run a nonprofit school that competes for community support with everything from other educational institutions to churches, food banks, animal rescue charities, and your local public radio station. If you have opportunities to collaborate with indirect competitors, great! But also make sure you know when they’re scheduling events and campaigns and how they might affect your plans.
How Nonprofits Can Work With ‘The Competition’
In some instances, organizations that initially appear to be competitors can turn into prospective partners. Maybe a competitor serves a slightly different population or has a different geographic reach. In many cases, there’s more work to be done than a single nonprofit can accomplish. If similar organizations have access to resources, supplies, or connections you don’t have — and vice versa — collaboration should be considered.
Just be sure to choose partners carefully and look out for common hurdles. Both organizations should independently arrive at the decision to join up, and the key people involved should share goals and working styles. Disagreements between former competitors, particularly between leaders used to calling the shots in their own organizations, are inevitable. So before you begin work, outline individual responsibilities and plan how to resolve impasses.
Networking Is Critical
At the very least, maintain good working relationships with other nonprofit leaders. Even if collaborative opportunities never quite pan out, you can only benefit from keeping your finger on the pulse of your geographic and charitable communities.
For more tips and insight to help you manage your nonprofit organization, reach out to the nonprofit services team at GBQ.
