Beyond co-funding: When funders collaborate

Do the funders in your community work together in ways that go beyond co-funding organizations and initiatives to include work like sharing insights, streamlining processes, or even aligning on vision?

Taking these extra steps can ease the workload on nonprofits, allowing them to focus where it counts most—delivering on their missions.

Here are four impactful ways funders can deepen their partnerships to amplify their collective impact in the community:

Streamlined Processes. Imagine if nonprofits could spend less time duplicating administrative work for different funders. Simplifying processes helps make that possible. For example:

• Coordinated site visits to reduce the number of times nonprofits need to host different funders

• A common grant application with standard questions, supplemented by individual funder-specific sections when necessary

• Unified grant cycles or deadlines to make it easier for nonprofits to apply and plan their funding needs

Information Sharing. Streamlining processes is a great starting point, but sharing knowledge can also empower funders to make more informed decisions. Some practical ways to do this include:

• A regularly updated list of active partnerships in the community, noting each partnership’s purpose and the foundations involved

• Periodic meetings to discuss new trends and lessons learned from recent initiatives

• A one-stop hub with key data on local nonprofits, including 990s, annual reports, and board member lists

Strategic Alignment. Identifying shared goals can strengthen the community impact of each foundation’s investments. Here’s what that could look like:

• Collaborative sessions to identify the most pressing community needs

• Jointly crafted visions for specific causes, where each foundation’s contributions align toward achieving broader, community-focused goals

• Regular “innovation” meetings to discuss new ways funders might collectively address emerging issues and trends in the nonprofit sector

Feedback & Responsiveness. By opening channels for feedback, funders can become more attuned to nonprofit needs and build stronger, more productive relationships. Some options to consider are:

• Regularly invite nonprofits to give feedback on funder practices, highlighting ways to improve partnerships and collaboration;

• Create opportunities for funders to learn from each other about the most pressing needs in the community.
  

Of course, not all of these ideas will make sense in every context. What will work for the funders in your community may look wildly different. The point is to consider whether there might be sensible opportunities to join forces in a deeper way.

That said, if you are interested in exploring ways to partner more closely with other funders in your community, here are some practical steps to consider:

Host a Workshop: Gather funders together for a facilitated workshop to surface interests, explore possibilities, and create an open forum for innovation. (Need a facilitator? Drop me an email.)

Open the Conversation: Have honest discussions about the potential positive and negative impacts of deeper collaboration—for each foundation, for nonprofits, and for the broader community.

Start Small: Consider taking incremental steps toward collaboration in areas where alignment is easier or naturally shared. Small wins can help build trust and demonstrate the value of partnership.

Find Your Coalition of the Willing: Not every foundation needs to be involved in every collaboration. Start with those who are ready to participate, and let partnerships grow from there.

By exploring new ways of working together, funders can amplify their collective impact while easing the burdens on nonprofits—allowing these organizations to focus on what they do best. Whether it’s information-sharing, strategic alignment, or something in between, funder collaboration can unlock community transformation.