The Myths and Reality of Nonprofit Collaboration

Observations from Six Years in the Trenches

Abstract

The Lodestar Foundation has been funding nonprofit collaboration since 1999. In 2009, Lodestar began a partnership with SeaChange Capital Partners to increase the scope of collaborative activity. Since then, SeaChange and Lodestar have evaluated roughly 400 transactions and made more than 100 grants to support nonprofits in exploring or completing mergers, acquisitions, joint-ventures, and other types of formal, long-term collaborations. In parallel, we've worked with partners in the sector – umbrella groups, funders, consultants – to promulgate collaboration as an effective strategic tool that should be considered in the normal course of business within nonprofit boardrooms and executive offices, and as an important form of capacity- building worthy of funder support. It has been satisfying, challenging and fulfilling work; what we've learned dispels many of the myths that keep nonprofits, funders and others in the sector from realizing the full potential of collaboration.