Competing. The consequences of competing are real!
In the Strategic Partnership Continuum, competing refers to the most basic, disconnected stage of the continuum. While many may assume competing refers to funding, it also includes competing for clients, volunteers, partners, public attention, etc. When nonprofit organizations ignore the opportunity for collective impact and instead compete, there are clear consequences.
- Example
The Impact of Competition
In the Bronx, two nonprofits — one focused on after-school academic support and another specializing in youth leadership programs — operate within the same few square blocks. Both organizations serve a similar group of young people and families and rely on many of the same local funding sources, such as city grants and private foundations.
Over time, competition for limited resources intensifies. Funders begin favoring organizations with higher enrollment numbers, pushing both nonprofits to aggressively recruit the same participants. Families are confused by overlapping services and conflicting program schedules. Young people are pressured to “choose sides,” reducing trust and overall participation. Meanwhile, funders see duplicated efforts and question the effectiveness of both programs.
As competition grows, opportunities for collaboration disappear. Instead of coordinating to offer a more holistic range of services — like pairing academic support with leadership training — the nonprofits operate in silos. Eventually, both struggle with reduced funding, staff burnout, and a tarnished reputation in the community, weakening their overall impact.
Mission Drift
Without collaboration, multiple nonprofits may work on similar programs or services, leading to an overlap in efforts within the same community or issue area. This duplication wastes resources that could be consolidated for a more significant impact.
Increased Administrative Costs
Competing for resources often means spending more on marketing, proposal writing, and staff dedicated to fundraising.
Burnout and High Turnover
Limited resources make it challenging to offer competitive salaries, benefits, and job stability, contributing to high turnover rates and burnout among nonprofit employees. Staff shortages and high turnover rates disrupt continuity and can hinder the quality of services.
Increased Focus on Fundraising Over Impact
Nonprofits may prioritize activities that attract funds or donations over activities that have a genuine impact on their mission. This shift can dilute the organization’s effectiveness and lead to public scrutiny or loss of credibility.