pproximately 10 million nonprofits operate around the world and focus on a variety of different issues. As the nonprofit sector continues to grow, there is a struggle with improving outcomes and showing impact. Two of the areas we need to address in the nonprofit sector relating to impact are 1) how to improve collaboration and 2) how to increase transparency.
There are two main reasons why nonprofits struggle with collaboration and transparency. First, there is a lack of trust and a feeling of competition between nonprofits. Second, nonprofits feel like they have limited time and resources, which hinders them from putting effort into working with other nonprofits or showing more transparency. In a 2020 study, many U.S. based nonprofits weren’t aware of other nonprofits in their community working on the same issue(s). And those who do know each other are hesitant to work together due to having different approaches, potential loss of autonomy and fear of losing their funding sources to another nonprofit. Foundations contribute to this sense of competition when they only fund one or two organizations working in the same space, causing a competitive atmosphere. Nonprofits also feel like they don't have time or resources to work together. For example, nonprofits spend a lot of time applying for funding. They repeatedly answer the same questions about their mission, vision, projects and more, causing additional usage of time and resources as they continually outreach for grants and donations.
Benefits of Nonprofit Collaboration
Research shows that there are at least seven benefits when nonprofits collaborate. The benefits for nonprofits to collaborate include new opportunities, new information, and new social capital. When collaboration increases, there can be an increase of effectiveness in outcomes. Greater connections are built within a community when collaboration increases. Collaboration also brings access to more funds and resources. Sharing of resources could involve pooling or sharing finances, skills, expertise, staffing and knowledge for a collaborative purpose.
Seven benefits of nonprofit collaboration:
- Improved outcomes
- New opportunities
- New, better information
- New social capital made available
- Bet community connections
- More access to funds
- More access to other resources
Transparency
Research also shows that approximately 30-40% of U.S.-based nonprofits don't have an active website, or their information is out-of-date, hindering the ability for people to learn more about their efforts. In addition, it is estimated that those numbers jump to 70-80% once we get outside the U.S. This is a problem, because transparency means more money for these nonprofits. Research suggests that transparent nonprofits receive 53% more contributions than nonprofits who aren't transparent. As nonprofits move into becoming more transparent with their information, trust is improved, and they see an increased number of donations.
Transparent nonprofits receive 53% more contributions than nonprofits who aren't. - JOURNAL OF ACCOUNTING, AUDITING & FINANCE, 2018
Solution
There needs to be an easier and faster way for nonprofits to work together and share information. A place where nonprofits can share information quickly, find and connect with other nonprofits, allowing collaboration and transparency to be easier to obtain. A more streamlined process needs to be built where nonprofits only need to update their information in one place, allowing other platforms to use that information, reducing the burden on nonprofits to maintain a variety of different online accounts with different organizations. A process where foundations and funders can find information on a global scale and fund collaborative projects, reducing the time nonprofits spend on submitting requests for funding. This could be an online community, a global database, online conferences, or other accessible approaches to encourage transparency and collaboration.
Conclusion
As nonprofits face challenges of collaborating with other nonprofits and being transparent, improving the use of technology tools needs to be addressed to improve efficiency. Creating an innovative community for the nonprofit sector can help improve the impact nonprofits are making around the world by providing a place to improve collaboration and increase nonprofit transparency.
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Improve Nonprofit Impact by Increasing Collaboration and Transparency
Photo by Claudia Raya via Unsplash.
November 21, 2022
Approximately 10 million nonprofits operate around the world. As the nonprofit sector continues to grow, solutions to improve collaboration and increase transparency must be addressed to demonstrate impact and improve outcomes, writes WikiCharities CEO & Founder Angie Holzer.
A
pproximately 10 million nonprofits operate around the world and focus on a variety of different issues. As the nonprofit sector continues to grow, there is a struggle with improving outcomes and showing impact. Two of the areas we need to address in the nonprofit sector relating to impact are 1) how to improve collaboration and 2) how to increase transparency.
There are two main reasons why nonprofits struggle with collaboration and transparency. First, there is a lack of trust and a feeling of competition between nonprofits. Second, nonprofits feel like they have limited time and resources, which hinders them from putting effort into working with other nonprofits or showing more transparency. In a 2020 study, many U.S. based nonprofits weren’t aware of other nonprofits in their community working on the same issue(s). And those who do know each other are hesitant to work together due to having different approaches, potential loss of autonomy and fear of losing their funding sources to another nonprofit. Foundations contribute to this sense of competition when they only fund one or two organizations working in the same space, causing a competitive atmosphere. Nonprofits also feel like they don't have time or resources to work together. For example, nonprofits spend a lot of time applying for funding. They repeatedly answer the same questions about their mission, vision, projects and more, causing additional usage of time and resources as they continually outreach for grants and donations.
Benefits of Nonprofit Collaboration
Research shows that there are at least seven benefits when nonprofits collaborate. The benefits for nonprofits to collaborate include new opportunities, new information, and new social capital. When collaboration increases, there can be an increase of effectiveness in outcomes. Greater connections are built within a community when collaboration increases. Collaboration also brings access to more funds and resources. Sharing of resources could involve pooling or sharing finances, skills, expertise, staffing and knowledge for a collaborative purpose.
Seven benefits of nonprofit collaboration:
- Improved outcomes
- New opportunities
- New, better information
- New social capital made available
- Bet community connections
- More access to funds
- More access to other resources
Transparency
Research also shows that approximately 30-40% of U.S.-based nonprofits don't have an active website, or their information is out-of-date, hindering the ability for people to learn more about their efforts. In addition, it is estimated that those numbers jump to 70-80% once we get outside the U.S. This is a problem, because transparency means more money for these nonprofits. Research suggests that transparent nonprofits receive 53% more contributions than nonprofits who aren't transparent. As nonprofits move into becoming more transparent with their information, trust is improved, and they see an increased number of donations.
Transparent nonprofits receive 53% more contributions than nonprofits who aren't. - JOURNAL OF ACCOUNTING, AUDITING & FINANCE, 2018
Solution
There needs to be an easier and faster way for nonprofits to work together and share information. A place where nonprofits can share information quickly, find and connect with other nonprofits, allowing collaboration and transparency to be easier to obtain. A more streamlined process needs to be built where nonprofits only need to update their information in one place, allowing other platforms to use that information, reducing the burden on nonprofits to maintain a variety of different online accounts with different organizations. A process where foundations and funders can find information on a global scale and fund collaborative projects, reducing the time nonprofits spend on submitting requests for funding. This could be an online community, a global database, online conferences, or other accessible approaches to encourage transparency and collaboration.
Conclusion
As nonprofits face challenges of collaborating with other nonprofits and being transparent, improving the use of technology tools needs to be addressed to improve efficiency. Creating an innovative community for the nonprofit sector can help improve the impact nonprofits are making around the world by providing a place to improve collaboration and increase nonprofit transparency.
