Collaboration vs. Competition in the Third Sector

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Date

2008-12-24

Authors

Irvin, Renee A.

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Abstract

This article delineates a framework for judging the usefulness of collaborative strategy in the nonprofit/nongovernmental sector. Popular among academicians as well as grant makers, collaboration among nonprofit organizations is often proposed as the dominant strategy for curing many of the sector's resource problems. However, competition is also prevalent in the nonprofit sector, as free entry encourages the nonprofit entrepreneur to form a new nonprofit to meet a perceived community need. Ignoring the influence of competitive forces while promoting preferred collaborative strategies can lead to recommendations for the third sector that are ambitious and wellintentioned, yet impractical. Primarily theoretical in scope, this article is intended to inform grant makers and those at the policy making level how to determine the best situations to encourage collaboration in the sector, and when, surprisingly, to favor single-organization grant making.

Description

28 pages

Keywords

Nonprofit sector, Grantmaking, Public sector, Collaboration, Competition

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