Overview of strategic alliance considerations for non-profits

1. Strategic Alliances
Opportunities & Pitfalls
TODD BRECHER
PARTNER, DOUBLE IMPACT ADVISORS

2. What is a strategic alliance?
 A partnership or collaboration between two or more entities that are intended to
achieve greater impact.
 Can be used to:
 Build awareness and advocacy with new stakeholders;
 Address complex issues that cannot be solved by one entity individually;
 Provide integrated continuum of services;
 Strengthen or expand program options, quality or performance;
 Gain back-office or admin efficiencies/take advantage of economies of scale.
 Enter new geographies, provide new services or reach new beneficiaries.

3. Types of strategic alliances
 Associations/Coalitions: Informal groups of organizations that combine to
accomplish specific purpose over time.
 Joint Programming: Contractual agreement to provide combined programs or
services.
 Shared Services: Provision by one entity to other of back-office services such as
accounting, IT, office space, marketing, etc. in order to consolidate functions at
lower cost.
 Merger/Acquisition: Formal legal combination of two entities, usually requiring
government approval. Various structures possible.

4. Key Considerations
 Identify the goal: Important to clearly define what strategic benefits that can be
achieved through the partnership, and get buy-in from all necessary stakeholders (staff,
board, etc.)
 Find the right partner: Need to identify partners who not only have the
resources/contacts that will be useful, but whose culture and approach meshes well
with yours. Do your diligence.
 Define the collaboration: Need to make sure all parties clearly understand and agree
on the goal of the collaboration and success metrics, the allocation of responsibilities,
length of the arrangements, exit rights, and other key terms.
 Put things in writing early in process to make sure everyone is on the same page.
 Ultimately will need either a formal contract or an informal “deal document” to govern the
relationship (depending on the type of collaboration).

5. Key Considerations (continued)
 Consider implementation challenges: Identify key obstacles and dependencies
in implementing the partnership, taking into account organizational culture,
leadership, capabilities, etc.
 Create an implementation team with individuals from each organization who are
charged with implementing the alliance, and make sure they have sufficient time to
devote to the project.
 Implement the alliance: Prepare for challenges and problems to arise—they will!
Regular and open communication, flexibility, measuring outcomes and reporting
to management of each entity are keys to success.