Collaborations can help charities to have an even greater impact. But, as Rick Pearson discovers, successful partnerships require plenty of hard work

February is the month of love, but when charities decide to get together, it doesn’t always result in a happy marriage.

Whether they’re collaborating with other charities, public bodies or private companies, charities shouldn’t jump headfirst into partnerships without first setting out some ground rules.

In a report released last month, NPC and Impetus set about finding the secrets behind successful strategic collaborations. Collaborating for Impact identified four cornerstones that all partnerships should be built on:

1. Start with the beneficiaries

When entering a collaboration, there’s one fundamental question that all charities should ask themselves: will it help our beneficiaries?  

 “Our research found that when charities went into collaborations for more superficial reasons – increased income; the prestige of partnering with a big name – the partnerships tended to fail,” says Angela Kail, deputy head of charity effectiveness, NPC.

Too often, however, discussions that start off focusing on beneficiaries lose their way as talk of money and targets takes over. “It’s vital that charities continually go back to what’s most important for their beneficiaries,” says Jenny North, director of policy and strategy, Impetus. “If the collaboration isn’t going to benefit the people you’re trying to help, chances are it’s not for you.

“And no charity should ever feel bad about turning down a collaboration, even after having several meetings.”

But collaborations can also have a hugely positive impact – both on a charity and its beneficiaries. Many of the UK’s most complex social problems, such as homelessness and the rehabilitation of offenders, cannot be solved by services that work in isolation. Lots of the most innovative solutions to these problems are coming from small- and medium-sized charities. If done correctly, collaboration can be a quick and effective way of bringing these solutions to a greater number of people.

“Charities should always be thinking about collaborating,” adds Pauline Broomhead, chief executive of the Foundation for Social Improvement. “If your charity is covering the same ground as another organisation, and by working together you could reach more people, then collaborating is the right thing to do. You just have to be sensible about it.”

2. Understand the finances

One of the main reasons cited for partnerships breaking down is a misunderstanding of the finances involved – and, unfortunately, it’s usually the charities that are to blame. 

 “Through our research, we found that lots of charities don’t know enough about the finances of their own organisation or the costs of collaboration,” says Angela. “Collaborations are often far more costly than charities first think, so it’s crucial to do your research beforehand. Private companies are generally very good at this; charities are not.”

So how can charities avoid making these costly mistakes? Just as some couples decide to sign pre-nuptial agreements, charities should also insist upon a consulting agreement. This should outline, among other things, the amount of additional work the charity is going to get. You don’t want to upscale your charity only to be told you’re not going to get the contract.

It should also give an indication of when charities are likely to get paid, particularly given that many contracts now follow a ‘payment by result’ model.

Other things that a consulting agreement should cover include are a clear idea of who’s doing what, how decisions are going to be made, what happens if a partner falls out, and who owns the intellectual property.

“Without getting these agreements on paper, a marriage that starts in heaven can end in hell,” says Pauline.

But then, not all relationships have to last a lifetime. Partnering with a company for a specific contract can be a very effective form of collaboration – you just need to be aware of the fact that it won’t last forever.

Establish whether you’re in this for the long-term or a ‘reason or a season’. If it’s the latter, don’t be lulled into a false sense of security because there’s more money coming in.  Be aware of the fact that it’s only a short-term arrangement

3. Demonstrate impact

In business, as in life, it’s important to pick the right partner. In the current commissioning environment, where lots of small charities are being overlooked for contracts, collaborating can seem like the only way to survive. However, it’s still important to be picky about who you partner with.

“Collaborating with the first organisation you see is a little like walking into a nightclub and asking the first person you meet to marry you,” says Pauline. “You need to first make sure that you have some things in common.”

So ask yourself: what’s their track record like? Do they deliver what they say they will? Will they go the extra mile?

You also need to make sure that you’re looking your best. Can you show evidence of the impact of your work? Can you offer potential partners reassurance about the quality of your organisation?

“In collaborations, a charity’s reputation is on the line, so you don’t want to get into a partnership with an organisation that’s not as committed or professional as your own,” says Angela.  “Lots of charities told us that they’d like to work with other organisations, but they weren’t sure which ones were good. That’s why thorough research is so important.”

Like any successful relationship, there also needs to be sense of equality between the two partners. “In most partnerships there’s going to be a lead partner, but charities should be confident about what they’re bringing to the table,” says Jenny. “They should also understand clearly what’s expected of them and what’s expected of the other organisation.”

And remember: if a company is talking to you, they’re definitely keen on obtaining your services. So defend what you do and be confident about the value you’d be bringing to the collaboration.

A word of warning, however: when it comes to collaborations, bigger isn’t always better. “Small charities should beware of taking on a contract that is too big,” says Pauline. “If the contract will disrupt your ongoing work with your beneficiary group, you shouldn’t accept it.”

4. Create the right culture

Just as it’s unwise to jump into collaborations without doing the proper research, so too is it foolish to cut yourself off from the very possibility of collaborations.

“No charity should ever feel bad about walking away from a collaboration – but they shouldn’t be closed off to them, either,” says Jenny. “Lots of charities pride themselves on the idea that they’re unique and do things differently. But sometimes this can be a barrier to potentially positive collaborations.”

The problem, perhaps, is that some charities still think of ‘merger’ as being a dirty word. It needn’t be. Indeed, under the right circumstances, it can be a very noble thing to do.

“It comes back to what’s best for your beneficiaries,” says Pauline. “If a collaboration will help you better serve your beneficiaries, that’s what you should do. Take the ego out of the equation. Charities should understand that the organisation itself has no needs; they only exist for the needs of their beneficiaries. If these needs are met, the needs of the charity will be too. But it has to start with the people you’re trying to help.”

Collaborations can help charities to reach more people who need their help, open the door to new contacts and learn from bigger companies. But they can also be costly mistakes, damaging a charity’s finances and reputation. While a certain amount of risk is inevitable, there are plenty of steps that charities can make to increase their chances of success. Do your research, pick wisely and keep your beneficiaries as the top priority. And who knows? With a little luck, it could be the start of something special.