Research on collaboration between nonprofits

Partnerships between nonprofits are risky endeavors. “In general, collaboration puts big demands on participating organizations, requiring organizations to interact in ways that are unnecessary when they act independently” (Proulx, 2014). Research is constantly being done into the effectiveness of nonprofit collaborations and what factors make them effective. Here is the latest research:

“Based on surveys on 201 voluntary human services nonprofit partnerships, trust, and communicative effectiveness are related to satisfaction with partnership outcomes” (Atouba, 2019). They say, “We find that trust is positively related to partnership effectiveness among human service nonprofits. Trust contributes to partnership effectiveness through confidence that partners are able and willing to deliver on their promises and abide by the collaborative agreement and that they will not opportunistically exploit the partnership for their own gain or at the expense of the other party” (Atouba, 2019). Researchers in the International Society for Third-Sector Research Journal found, “Interestingly and contrary to some findings from previous research, resource complementarity, homophily, and social networks across organizations’ members, as partner selection factors, were not found to be related to partnership effectiveness” (Atouba, 2019). In addition, they cite a study from Chen & Graddy in 2010 that found that they did not relate successful past collaborations to partnership effectiveness. 

“Factors such as shared governance, integrated systems, mutuality in operations, and smooth functioning are key indicators of partnership effectiveness” (international). They state, “These findings suggest that sharing values and mission enhance the feelings of trust, but do not create better partnership outcomes” (Atouba, 2019). Communication and trust are positively related to the collaboration’s effectiveness. “Another motivation for collaboration is simply the improvement or expansion of program services. An organization might choose to collaborate to maintain or increase its mission-driven programming” (Proulx, 2014).

Researchers in the Emerald Insights Journal focused on the type of nonprofit collaborations. They write, “organizations are often urged to coordinate with others that are competing for the same resources. This increases the risk associated with collaboration, as each partner organization has an economic interest in the other’s failure” (Proulx, 2014). Another interesting insight they had was the fact that the more uncertain an organization’s resource base, the more likely it will enter a collaboration with another organization. Likewise, they determined that “older organizations are more likely to collaborate than younger organizations, a finding that they attributed in part to the greater depth of the older organizations’ networks” (Proulx, 2014). They say that “comprehensive strategic planning, including an analysis of the organization’s current environment, can help uncover whether a nonprofit organization can benefit from collaboration” (Proulx, 2014).

“One of the chief challenges of collaboration is the loss of autonomy” (Proulx, 2014). They cite organizations must maintain boundaries when collaborating. “Other challenges that arise in collaboration include communication and determination of accountability” (Proulx, 2014). When choosing to collaborate with another organization, “Collaborating organizations risk their reputations, lose some control over their activities, and are often involved in unequal exchanges where one partner must provide more resources than the other” (Proulx, 2014).

There are different collaborations between nonprofit organizations.

Fully integrated merger 

• Link to performance: Combines the strengths of multiple organizations

• Key challenge: Decisions about how to remove duplications

Partially integrated merger

• Link to performance: Retains the brand strength of merged partners

• Key challenge: Maintaining the identity of smaller partners

Joint program office 

• Link to performance: Shared fundraising and program development

• Key challenge: Division of labor

Joint partnership with affiliated programming

• Link to performance: Establishes a continuum of care 

• Key challenge: Unclear ownership

Joint partnership for issue advocacy

• Link to performance: Communicates a united front 

• Key challenge: Differences in philosophy

Joint partnership with the birth of a new formal organization

• Link to performance: Tasks and risks diffused to a new entity

• Key challenge: Loss of control by founding partners

Joint administrative office 

• Link to performance: Administrative efficiency 

• Key challenge: Loss of control among smaller partners

Confederation 

• Link to performance: Affiliate support 

• Key challenge: Affiliate independence

Introduction to collaboration between nonprofits

Proulx et al. (2014) writes in the Emerald Insight Journal, “[nonprofit] organizations regularly innovate through collaboration with other organizations in order to secure resources and to increase the potential to more effectively meet each collaborator’s mission.” They cite that the most popular form of inter-organizational collaboration is between two or more nonprofit organizations. “Observers assert that the frequency of collaborative relationships between nonprofit organizations has been increasing in recent years” (Proulx, 2014). They define collaboration as the process when organizations work together to address problems through joint effort, resources, and decision making while sharing ownership of the final product or service.

Atouba & Shumate (2019) explain in the International Society for Third-Sector Research Journal, “We view an inter-organizational partnership as a ‘cooperative, inter-organizational relationship that is negotiated in an ongoing communicative process, and which relies on neither market nor hierarchical mechanisms of control.’” They view this definition of collaboration as sufficient because it emphasizes resource sharing and joint value creation, as well as acknowledges the dynamic nature of partnerships based on constant communication. In selecting a partner, they state it involves a process of intense searching and evaluating potential candidates. They also hold that most, if not all, staff members should be in support of collaboration, not against it. “Inter-organizational trust, which refers to the extent to which members of one organization hold a collective trust orientation toward another organization, is an important component of inter-organizational partnerships because it facilitates the interactions among partners” (Atouba, 2019).

They cite that “effective or well-functioning nonprofit collaborations are generally assumed to provide more innovative solutions to complex problems, create higher-quality programs, reduce duplication of efforts, and positively impact both the collaborating organizations and the communities they serve” (Atouba, 2019). Elaborating further, they state that they view partnership effectiveness as a perception among participating staff that their collaboration efforts are achieving what they intended to achieve. Interestingly, this places the effectiveness of collaborations in the eyes of the beholder, since there is no official measure to evaluate the effectiveness. 

How can nonprofits change?

Communication plays an important role in collaborations. Atouba & Shumate (2019) suggest that “indeed, high communicative effectiveness between partners can reduce ambiguities, uncertainties, and information asymmetry, thereby enhancing coordination of efforts, knowledge exchange, and co-creation and implementation of partnership goals and strategies.” They also suggest that nonprofit leaders should be critically assessing the collaborative fit between their organizations and taking time in making decisions. They suggest, “from a strategic perspective, it may be wise for nonprofits to invest in low-stakes collaborative efforts with attractive—in terms of resources, values, etc.—partners they do not know to develop some collaborative experience with them, before potentially agreeing to higher stakes formal ties with them over time” (Atouba, 2019). Finally, they suggest, “neither homophily based on mission, nor the existence of interpersonal networks among nonprofits, nor partners’ resource complementarity significantly contribute value to the partnership. As such, although these factors are important drivers of collaboration, nonprofit leaders should be very cautious about using them in key partner selection decisions” (Atouba, 2019).

Proulx et al. (2014) suggest that “many funders place a high value on collaboration, so organizations may collaborate in order to gain legitimacy in the eyes of these funders.” In addition, they say that “once [a nonprofit’s] board, staff, and other advocates understand the potential that can come with collaboration, blurring boundaries and giving up autonomy might not seem so intimidating” (Proulx, 2014).

Conclusion

Atouba & Shumate (2019) cite that “Indeed, despite some progress in recent years, studies empirically examining the links between how nonprofit partnerships form, their functioning, and their effectiveness are still relatively scarce.” They further cite the lack of research linking nonprofit selection to collaboration effectiveness. In addition, they write, “the results of this research suggest that nonprofits should select partners primarily based upon factors that mitigate risk and increase the likelihood of a positive value being created through interactions within the partnership itself” (Atouba, 2019).

Written by: Drew Jackson, WikiCharities Team Member

https://www.linkedin.com/in/andrewrjackson36/

References

https://www.researchgate.net/publication/335076560_Meeting_the_Challenge_of_Effectiveness_in_Nonprofit_Partnerships_Examining_the_Roles_of_Partner_Selection_Trust_and_Communication

https://www.emerald.com/insight/content/doi/10.1108/IJPPM-06-2013-0121/full/html