Funding for Nonprofit Collaboration

Cynthia Bailie, The Foundation Center

The Lodestar Foundation: OverviewStrategies: Increase philanthropic resources by supporting organizations, programs and projects that encourage philanthropy, public service and/or volunteerism

Increase philanthropic impact by encouraging and supporting long-term collaborations among nonprofits working in the same area in order to increase efficiency and/or impact and to reduce duplication of efforts, and the adoption of other sound business practices

Lodestar Funding Rationale Grow philanthropy by increasing both philanthropic

development (“input” side of philanthropy) and impact of philanthropic grants (“output” side of philanthropy)

Inputs: Support projects and organizations that encourage and help people be philanthropic

Social Venture Partners Arizona Lodestar Center for Philanthropy and Nonprofit Innovation

Outputs: Support collaborations to maximize the effectiveness of philanthropic dollars

Lodestar Day Resource Center AWEE/Women Living Free merger The Collaboration Prize

Goals

Identify models of nonprofit collaboration for inspiration and replication in the nonprofit sector

Build an information base (database) of effective practice models for research and use by nonprofit leaders, grantmakers, academics, consultants and others

Important Eligibility Requirements Two or more 501(c) (3)s Formal Agreement that is enduring and addresses management

and operation of the collaboration Actively operating for at least 18 months Parties and activities are located in US

Prize Selection Criteria Demonstrates significant impact through quantifiable means

and/or qualitative evidence Is an outstanding model for the sector by:

Representing an innovative response to a specific challenge or opportunity

Better positioning the collaboration as a field/sector leader More effectively using human and financial resources

Overview of Total Nomination Pool2009: 644 nominations were submitted, 176 qualified for the prize2011: 809 nominations were submitted, 412 qualified for the prize

Among qualified nominations:

2009•52% were between two organizations

2011•26% were between two organizations• All types of collaborations were

represented, with largest number in joint programming

• All types of collaborations were represented, with largest number in joint programming

• Collaborations were in all focus areas with largest number (24%) in health and mental health

• Collaborations were in all focus areas with largest number (38%) in human services

• Largest number (27%) were started in 2006

• Largest number (25%) were started in 2008

The Nonprofit Collaboration Databasecollaboration.foundationcenter.org/search/searchGenerator.php

Contains models and best practices drawn from 670 projects presented for consideration for the 2009 and 2011 Collaboration Prize Competitions

The Nonprofit Collaboration Database:Type of Collaboration* Largest number of collaborations in the database are Joint Programming (71%)

*This and the following analyses examine the entire contents of the database.

The Nonprofit Collaboration Database: Collaboration Focus Area Collaborations in the area of Human Services make up the largest portion

(46%) followed by Education (23%), Health (20%), and Mental Health (20%)

The Nonprofit Collaboration Database: Geographic Scope

Collaborations were mostly local in nature, with 72% serving regional communities*

* Local collaborations include collaborations that focus on a city, county or multiple counties.

The Collaboration Database:Reasons to Collaborate Top 5 goals sought through

collaboration: Top 5 circumstances prompting

collaboration:

1. Expand reach, range of services, and programs2. Improve quality of services and programs3. Address unmet or escalating community needs4. Maximize financial resources5. Serve more and/or different audiences

3. Initiated or mandated by funder(s)

2. Respond to a community needs4. Competition for funding or clients

1. Advance a shared goal

5. Respond to a funding opportunity

The Collaboration Database:Collaboration Process and Structure How were funders typically

involved? What were the top challenges encountered?

1. Funded implementation2. Suggested or encouraged the collaboration3. Funded initial exploration4. Provided endorsement of the project5. Served a lead investor

3. Coordination or integration of programs and services

2. Creating a shared culture

4. Addressing lack of staff or allocation of staff resources

1. Raising funds or integrating fund development to support the collaboration

5. Internal and external communications

The Collaboration Database:Outcomes Community Impact Organizational Impact

1. Previously unmet needs now being addressed2. Collaboration has served as a model for others3. Greater coordination of services (less duplication)4. Increased collaboration with/among organizations5. Improved quality of programs and services

3. Greater ability to allocate resources to areas of need

2. Fund development improvements

4. Human resources efficiencies

1. Financial savings

5. Improved marketing and communications, public relations, and outreach

Lessons Learned Innovative models of nonprofit collaboration exist Collaboration takes time and resources Funders have a critical role to play in the collaboration

process Provide resources Create an environment that encourages collaboration Educate

Language of collaboration is confusing Collaboration is an effective capacity-building tool Collaboration is easier when all parties focus on

mission rather than operations Funders should think more about collaborating among

themselves Collaboration can provide incredible bang for the buck

Search the Nonprofit Collaboration Databasecollaboration.foundationcenter.org/search/searchGenerator.php

Map Search

Collaboration Summary

Collaboration Narrative

Basic Search

Detailed Search

Keyword Search

The Collaboration Database:Future Enhancements Open submissions Interactivity Training Matching service

Funding for Nonprofit Collaboration

Cynthia Bailie, The Foundation Center