Compete or Collaborate? Strategic Approaches for Nonprofit Growth

Nonprofits often thrive on collaboration, whether it’s joining forces for a special event or working together on a fundraising campaign. Some go even further, entering formal partnerships that share staff, facilities, and resources — or merging entirely to amplify their impact.

But what about competition? Nonprofits don’t just collaborate; they also vie for donations, grants, volunteers, and other limited resources. Knowing when to compete and when to collaborate can give your organization a strategic edge.

Understand the Landscape: Direct and Indirect Competition

The nonprofit sector is crowded, and mission overlap is inevitable. To position your organization effectively, it’s essential to monitor and analyze both direct and indirect competitors.

• Direct competitors share similar missions and often target the same donor base and grant makers. This rivalry can make fundraising challenging. To stay informed, follow these organizations on social media, subscribe to their newsletters, and review their annual reports. Borrowing good ideas is fair game — just adapt them to your unique mission and audience.
• Indirect competition comes from organizations outside your immediate mission area that are still vying for attention, time, and financial support. For example, a nonprofit school may compete with local churches, food banks, animal rescues, and public radio stations for community resources. Understanding these dynamics can help you time your events and campaigns more strategically.

When to Compete — and When to Collaborate

In some cases, the very organizations you view as competitors can become valuable partners. Perhaps your missions overlap slightly, or your geographic reach differs. In reality, there is often more work than one organization can handle alone. If your competitor has access to resources or connections you don’t — and vice versa — collaboration can be a win-win.

Keys to Successful Collaboration

• Shared goals and clear roles. Both organizations must independently decide to collaborate and be aligned on the partnership’s purpose.
• Defined responsibilities and conflict resolution. Avoid power struggles by clarifying who handles what, and agree in advance on how to navigate disagreements.

Carefully choosing partners and addressing these common hurdles can turn competitors into allies.

Build Strong Relationships

Even if collaboration isn’t in the cards, maintaining positive relationships with other nonprofit leaders keeps you connected to your community and aware of trends and opportunities. Networking can help you identify shifts in donor behavior, policy changes, and potential partnerships down the road.

Balancing Competition and Collaboration

Competition is part of the nonprofit ecosystem, but it doesn’t have to be cutthroat. Thoughtful collaboration and strategic competition can coexist. Stay adaptable, keep learning from others, and always prioritize your mission’s impact.

How HoganTaylor Can Help

The HoganTaylor Nonprofit team of business advisors and CPAs is comprised of former CFOs, controllers, and industry experts with extensive experience providing the guidance organizations need to lean forward again in their leadership. If you have any questions about this content, or if you would like more information about HoganTaylor’s Nonprofit practice, please contact David Stiles, CPA, Nonprofit Practice Lead.

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.