Critical collaboration: Not all nonprofits will survive
Photo by cottonbro studio
Some of us are no longer whispering but are saying it out loud, “Not all nonprofits will survive this economic and public policy environment.” Hard stop. With major disruptions in government public policy and funding, the uncertainty of the economy for the middle class, the ever widening wealth gap, and the manipulative tax advantaged tools that allow the wealthy to park money in Donor Advised Funds, avoiding real time giving, we are entering into a era of lean, scarcity and competition that will force the closure of scores of nonprofits.
Too many consultants are advising nonprofit leaders continue to focus on expanding revenue streams and cutting expenses, even as they watch the walls protecting reserves (if they have any) start to crack —if not crumble. The magical thinking is that if we could get by with one less FTE, add more fundraising appeals, or if we would amp up our donor appreciation calls and letters, we will survive. As a backup, some consultants will double down on the crass Mission/Money Matrix planning model to decide on what programs get cut as financials continue to decline (1).
Just stop. There is no “McKenzie Scott” to bail you out. If you are cutting programs, staff, or infrastructure, you certainly can’t add “new” revenue generating strategies. and the Mission/Money “Lord of the Flies” strategy to cut programs won’t rescue you. It’s time to think differently about your organization’s future. Whatever your issue area is —keeping low-income seniors stably housed, helping children learn to read by third grade, or inspiring the community through arts and culture— you are not alone. Other are working on the same issues and, because you are not alone, the conversations must shift. Here’s how.
Convene your board and staff and ask yourself what is in the best interest of our clients and community. That is a very different conversation than asking what is in the best interest of our organization. Reflect on your theory of change. What falls outside of your agency’s work that might make an even bigger impact for the clients you serve? Look carefully at the data that supports the impact that your organization is making. How rigorous is the data? What is the return on investment you can demonstrate to donors and policy makers? Does your organization have the capacity to go even further or are your programs treading water, or slipping behind? Be honest. These kinds of conversations are difficult to have and that is why we avoid them.
Replicate these conversations in a room with other nonprofits, philanthropists, and government agencies who provide services to your client demographic. What does your community wide theory of change look like? What falls outside of the collective community work that might make an even bigger impact for the clients you serve? Again, what does the data collectively tell us about our impact that our community is making. How rigorous is the data? What is the return on investment you can collectively demonstrate to donors? Does your community have the capacity and political will to go even further or are your programs treading water, or slipping further behind?
At this point, you need the courage to collectively explore collaborative models to serve your client base. Do you need four agencies providing volunteer reading tutors while evidence points to the efficacy of a more intensive staff supported tutoring model? Do you need separate nonprofits providing services to low-income seniors is silos rather than a single coordinated care agency? Through such exploration, a community-level theory of change can emerge. Imagine if six agencies pooled their resources resulting in new partnerships and model of services. These models might range from maintaining an active coalition to formal collaborations defined by a memorandum of understanding, to collocating service provision, or even merging nonprofit organizations.
Finally, map out a strategy to collaboratively move forward. What are the metrics that the group of agencies are tracking and what are the decision points based on data? How do we start to experiment with joint programming. When do Board of Directors start talking together. What are the process of checking in with the strategy. How will we hold ourseves accountable for the collective decisions we make.
Recently, I read an article about an impact collaborative representing a nonprofit alliance model where previously siloed organizations collaborate to scale services while retaining autonomy (2). While it is an intriguing approach, it likely allows agency autonomy to trump interagency efficiency. Do we need multiple agencies with separate boards of directors? Grant writers and fundraisers competing for the same limited dollars? I believe that in many cases, the collaborative planning that is needed now will require us to sacrifice our institutional egos.
The most effective nonprofit leaders objectively understand that their organizational brand and programs are not sacrosanct but part of a larger whole. They know that even evaluated programs, at best, represent a tiny part of the change or support that your clients need. It’s time to move beyond thinking that your nonprofit organization is a brand that is more important than other organizations. The thought of giving up agency or strategic control is terrifying to the leadership and ego of many nonprofit leaders but we are facing a crisis. Repeating the opening statement of this article, Not all nonprofits will survive this economic and public policy environment.”
It is time to organize and collaborate like never before. Facilitating such conversations like these can be loaded and challenging. Some conversations might need an outside voice to help. So, how can I help?
(1) While this concept was the pop trend a few years ago, it keeps being recycled by consultants thinking that it is data drive approach to programming decisions. As an example see: The Mission-Money Matrix: A Smarter Way to Set Nonprofit Funding Priorities
(2) Kaplan, S. (Nov. 4, 2025). The Impact Collaborative (SSIR). The Impact Collaborative.
