Episode 113: Friend or Foe: Putting Perspective on Competition vs Collaboration in the Nonprofit Sector

There are times when nonprofits need to collaborate and times when they are in competition. It's important to understand when, how, and how best to cultivate collaborations, and when, how, and how best to set your organization a part from your competitors to win grants. Learn the in's and outs to powerfully set your organization up for success.

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🔦 NONPROFIT SPOTLIGHT 🙌🏿

Umpqua Bank Pt. 1

👉🏿https://www.umpquabank.com/

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🚀 RESOURCES TO HELP YOU RUN A SUCCESSFUL NONPROFIT

Questions to Ask a Grant Writer Before You Hire Them https://drive.google.com/file/d/1gfGN5QkdhNEQMVhF0bOyKxCGJuK5Pn62/view?usp=drive_link

90 Days to a Profitable Nonprofit https://drive.google.com/file/d/1ofgeHJ2CTVS0t8STMiNqfveaVpWfaK7o/view?usp=sharing

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Podcast Transcript

Speaker 1 (00:00):

Welcome to On Air with Amber Wynn, where nonprofit leaders learn to fuse passion and commitment with proven business strategies to create long-term funding impact and sustainability. And now here's your host and resident, Philanthrepreneur Amber Wynn.

Speaker 2 (00:21):

Hey, good morning fam. It's your girl back in the house. You're on air with Amber Wynn, and today I am going to talk to you about something that I have been, I won't say struggling with, but I just want to bring clarification around. Sometimes your girl sends mixed messages and it's not intentional, but at the same time it is, right? What am I talking about? So today's episode is called Friend or Foe, putting perspective on competition versus collaboration in the nonprofit sector. And when I talk about sending mixed messages, sometimes I'm telling you there's a small amount of money and you're competing for it. But then on the other side I'm saying you need to collaborate and funders want to get more bang for their buck. There are two different distinct times when you really just, you are competing against other nonprofits. It is what it's right, and there are other times when it's most beneficial for you as an organization for your colleagues and for the community for you to collaborate.

(01:36):

I just think that it's important for us to cover when those times are so that we are clear because there is a space for both. There's a space for you making sure that your house is in order, and there's a space for collaborating, combining resources, working together to strengthen your community. So today's topic is friend or a foe, and when we come back, we're going to dive deep into what that means. Most founders don't realize that there are more applicants than there is money. This fact impacts a nonprofit's fundability. Nonprofit founders should administer research on their competitors, determine if their community is oversaturated, and identify their competitive advantage before they start a nonprofit. Check out how to validate your nonprofit idea, a step-by-step guide on how to administer the research. You need to validate your idea before spending hundreds of hours and thousands of dollars only to struggle to fund it.

(02:37):

Get your copy today. Welcome back to On Air with Amber Wynn. And today I'm trying to clear up some of the mixed messages that I send about competition versus collaboration. I'd love to say that we should collaborate on everything because in my mind, I really don't believe that we need to compete in that space, meaning I believe that there's some for everyone, but the reality is there is a small pot of grant money out there. And the reason why I say that there's enough for everyone is because no nonprofit can solely survive off of grant dollars. If you're trying to do it, then you're setting your organization up to fail. Every nonprofit should have 10 streams of revenue, and if you have incorporated that strategy into your excuse fundraising strategy, then there is, there's enough for everyone because we're not all solely fighting for this one pot of money.

(03:39):

You should have 10 streams of revenue and therefore diversifying the streams of revenue coming into your organization. So today, I just want to try and clarify what I mean by that. So there are times when you're competing against each other. When a funder says, here is a RFP, here is a request for proposal, here is a call. We are going to fund 1, 2, 3, 4, however many nonprofit organizations submit your proposal. In that space, you are competing. Now, there may be something in the guidelines that says, in order for us to fund you, you have to have a collaboration. Funders will require that because they're trying to get these silos, these nonprofits that are operating as silos, they're trying to get them to work together. A lot of times they're like 5, 10, 15 nonprofits in the same community doing similar things or things that could compliment each other, but they're not collaborating.

(04:40):

So funders are trying to force you to work together so that they can spread out their money so that you can share resources, and so that there's this connectivity in the community that's collaboration. Now, if the funder says, we're only going to fund specific nonprofits, then guess what? Now you're now competing against other nonprofits. It's based on criteria. There's a scoring system, right? So if you receive an 86 in your competitor, another nonprofit in your community receives a 96, they are going to get funded. So in that space, you are competing against other nonprofits, and I have been sharing with you that the way that you get funded is by making sure that your house is in order, making sure that you have grant responsive answers to those questions by making sure that you have an accurate budget by making sure that your organization has systems so that you can submit the financial statements that the funder's asking for those things.

(05:41):

Those things you need to have in order, in order for your organization to be competitive and to beat out your competition, which are other nonprofit organizations in that space, it is what it is because a funder is going to choose 1, 2, 3, 4, or five, and you want to be in that group. Now, when we talk about collaboration, we should always be working with each other. It is a community of people who are committed to making the world a better place. And in that space, I just believe that there's opportunities for us always to support each other. When I was an executive director, I would do things like, I would go to community meetings and say, Hey, if you guys need a conference room, we have one. Because I know that that's a challenge. Not everybody had space. I would say, Hey, we've got this grant. We're looking for some subcontractors.

(06:34):

I know that you specialize in X, Y, and Z. We specialize in A, B, and C. Let's collaborate on this grant. So in that space, there's enough for everybody. You may not get 75% of that pie. You may get 15% this time. Next time you may get 75% and I get 15%. But the point is we always win together. The other thing about collaboration is it's not always about money. Sometimes it's just about resources. Sometimes it's about power. Sometimes it's about support. My recommendation is that before you collaborate, let's just say there's a call and the funder says you need to have a collaborator. That is not the time to go find your collaborator. It's important because when you get in bed with another nonprofit, you are stuck with them for that whole grant period, which is usually a year, sometimes three years. You don't want to, this is not love at first sight where you get married and when you just first meet the person, that is the worst thing you can do as a nonprofit is to reach out and say, Hey, Amber, I've got this grant.

(07:47):

They're looking for somebody who can dah, dah, dah, dah. Would you collaborate? Send me a letter. That is the worst way to create a collaboration. You need to know the organization's work ethic. Are they going to submit their reports on time? Are they going to carry their load? So collaborations really should be started well in advance. I'll spend more time on that in another episode. But the bottom line is there is a time and a place for both. But regardless to whether it is you competing against other nonprofits or you working in collaboration with other nonprofits, your house always needs to be in order. You need to make sure that your infrastructure is tight, that you have systems, that you have a seasoned board of directors, that you have an optimal budget. Those things will never ever change. If I am working with you as a partner, I want to know that you have what you need in order to carry your own organization.

(08:45):

A funder wants to know that you are a funder ready. So always, always, always, you're going to need to have a strong infrastructure. You're going to need to make sure that you're able to represent yourself as a viable nonprofit. And if you haven't been made aware of it, I have the roadmap for that. It's called the 90 Days to a Profitable Nonprofit, and it's going to position you, number one, to be competitive. What I teach you in this course is going to elevate your organization because you're going to have everything you need to get your house in order. And number two, if people are vetting you to be a part of a collaboration, you'll have it as well. So I'm going to pause right now so that you can learn more about 90 days to a profitable nonprofit. But when we come back, we're going to take Ask Amber when we get back, are you struggling to fund your programs?

(09:39):

Can't get a grant to save your life. Most consultants will share the what of how to start a nonprofit or how to fundraise. They may even share the why, but they don't share the how because that's where they make their money. Now, I'm not hating. I'm a businesswoman too, but I've been where you are trying to make the world a better place, struggling to keep the doors open up to the wee hours of the night writing grants and doing whatever needed to be done. And because I've walked in your shoes, I'm not here to make you spin your wheels, waste your time or your hard earned money. We ain't got time for that. The world needs you. I'm here to show you how to transform that pit. You keep dumping your hard earned money into a profitable nonprofit. I take my 30 years of nonprofit experience as a founder, executive director, program developer, grant writer in funder, giving out over $7 million annually in grants, and I save you literally thousands of dollars in hundreds of hours.

(10:42):

I walk you through setting up your nonprofit organization so that you can be generating enough revenue to cover your monthly expenses in just 90 days. How would that feel? Not paying bills from your personal bank account. I share my insider secret tips, tricks of the trade and provide you with a step-by-step roadmap on how to turn your bootstrap organization into a profitable nonprofit. Within six months, you could be generating enough revenue to pay your salary or fully fund your program. The choice is yours, but you have to get the blueprint, and it took me three years to develop it, but it's here and it's going to change your life. Join my other successful clients who are just like you, full of passion and determination, but they had no idea all that it takes to run and fund a successful nonprofit. Now they're winning grants and drawing a salary, and they know what it is that they're supposed to be doing to run a successful nonprofits.

(11:43):

They're no longer making it up as they go. They have the roadmap and they're clear about next steps. And I want that for you too. So what do you get in this course? You'll walk away with knowledge, products, processes, and systems, not just a bunch of promises, but exactly what you need to turn your organization into a profitable nonprofit. I promise you don't need grants. What you need is a solid infrastructure, and this course is going to give you all of that and more. And what's more, it comes with the money back guarantee. So go ahead, click the link below to register for this course. Welcome back to On Air with Amber Wynn is your girl and Philanthrepreneur, Amber Wynn. We've been covering the topic, putting perspective on competition, in collaboration in the nonprofit sector. And now it's time in the show where you get to ask me your pressing questions.

(12:41):

I try to cover topics that I think would be helpful, but the reality is that you guys are on the ground doing the work day to day. So if you have questions, you can hit me on any of my social media. I am everywhere y'all. This question comes from Denise and Linwood, and she actually emailed me at amber@amberwynn.net. And here's her question. There's so many problems in my community. I hear you saying pick one, but how do I do that when there's so many and when so many cause deep rooted issues in our community? That's a great question, and it's one of the things during my initial consultation with clients that I ask, so what is the problem that you are solving for? And who are you serving? And a lot of times people will say, oh, we serve everybody. And they're saying that because there's so many issues, just like what Denise is talking about.

(13:38):

But here's the thing, you need to be around for the long term, and in order for you to be around for the long term, you need to get funded. So funders look at your ability to deliver. If you are the jack of all trades but master of none, there's a high likelihood that your organization is not going to get funded. Why? Because funders want to see a return on their investment. And if you're doing six things versus one or two very well, they're going to look for the organization that's doing one or two things very well. So a lot of times people think, oh, we've got seven programs, and a funder's going to be impressed by that. When an actuality, it's the opposite. Funders are looking for organizations that are great at one, two, maybe three things. And those three things need to be related.

(14:31):

I have clients say, oh, well, we serve seniors and we serve youth and we serve veterans. Like those are three distinctly different target audiences that require distinctly different resources. If you're serving youth and you're doing job placement, you're doing a, well, that's the same job placement, college admissions and life skills, but it's only for youth, then that's you being a deep expert with youth. But if you're serving three, four different types of target audiences, you've got to put in 3, 4, 5, 6, 10 different types of resources to support them. So a funder is really looking for you to be an expert in your field with your cause and not be spread so deep. So to answer your question, Denise, how do you pick that one thing? You need to look at the data. You need to go to your government website or government agency and really look at what's the number one thing that is most plaguing your community?

(15:42):

Yes, you may have people who are homeless, you may have a high meth, you could have a whole bunch of things, but what is the number one thing that's plaguing your community that's getting the least amount of resources? So maybe you do have homelessness, but there's so much money going into homelessness right now. So then you go to the next thing. If there's an opioid crisis, but there's money being dumped in that, if you go to that third thing, but there's not a lot of money being invested to resolve that problem, then that's how you choose. You pick the one thing, you become an expert at it, and then you can start to branch out. So if it's meth, then you're like, all right, we're going to deal with getting people off the street who are on meth. And then after that, you can branch out.

(16:34):

Now we're going to take programs that's going to help these people who are on meth so they can become independent. And then you just branch out on that. But that cause you need to be the expert in that one. Cause that one target audience and not like 5, 6, 7, 8, 9, 10. Okay, I hope that helped. That's a very good question. And it's one that when you're starting a nonprofit, you want to be very cognizant of because as I said, funders don't want to see you stretch too thin. So that was Ask Amber, if you have a question, feel free to hit me on my socials. I'm on all of them. I'm on Twitter or X or whatever they're calling it today. I'm on Instagram, Facebook, email, where to find me? All right, so now we're moving on to the part of the show that you guys already know.

(17:24):

I say it every week because I mean it every week. It's my favorite time, and it's when I shine the light on nonprofits, and I've expanded it this season to also include those consultants, companies, individuals who also support nonprofits. And I'm excited about this feature because I'm always trying to give nonprofits insight into the world of funding, right? It's different on the other side. So I have the pleasure, the honor of speaking with two individuals from Umpqua Bank. Nonprofits are always trying to penetrate funding sources and banks are funding sources. You'll hear during the conversation what types of resources, banks in particular Umpqua Bank is bringing into the community. We've got things like, yes, money they sponsor, they give out grants, but you can also use banks to recruit board members. So in this interview, which is going to be spread out in four parts, you'll get to hear from bankers themselves how nonprofits can engage with banks. So let's jump into part one of Shine on nonprofit. And we are focusing on bank. That's U-M-P-Q-U-A bank.

Speaker 3 (19:02):

What we have currently is our neighbors program, which is specifically for first time home buyer. And the program, while it is one of those products that is sellable to Fannie Mae, it still has a lot of flexibility, more flexibility in some of the other programs that we typically would offer. And so for instance, there's more leniency on the credit score perspective. There's also some flexibility around the credit itself, not just the score, but actually the dynamic of the credit and perhaps a little more flexibility around your assets and sorts and things like that. So let's just say it's just a little more flexibility, but it's our neighbors program. It's a proprietary first time home buyer program that has a down payment assistance opportunity associated with it. And I think that, well, not, I know that it has allowed our team across all of our footprint to really lean into the idea that we do have products that are going to help us move the needle when it comes to our black and brown. We don't say bipoc, black and brown, Hispanic agent, all the colors of the rainbow, all of us there that sometimes have been left behind. And so I think that without going into more detail about the programs that maybe Nicole will talk about, we do have some programs that are really accessible and our team is certainly accessible, and I think a lot of people have a lot to get excited about to learn and get to know. Umpqua Bank.

Speaker 2 (20:57):

Welcome back. You're on air with Amber Wynn, and I hope you enjoyed our session, our first session with Umpqua Bank. I found it to be exhilarating to get the insider information. I don't know, I think when you hear it directly from the horse's mouth, you just get a better understanding. And I know I tell my nonprofits all the time things that are shared in these interviews, but it's like when your mama tell you something over and over and over and you don't listen, but your auntie comes in or her best friend comes in and you listen all of a, it's like that. It's all good. That's why I have features now, and I've expanded it so that people from the outside can come in and share their expertise and knowledge. If you want to see the full episode, go check them out on my YouTube channel.

(21:44):

I will continue to share the rest of the interview over the next couple of weeks, so stay tuned for part two next week. And that's all I have for this week for you. I want you to just really be clear on about putting perspective on competition versus collaboration. They both have a space in our community. At the end of the day, I want you to be prepared either way, but to understand that there is a place for competition and there's a place for us to collaborate because it's a lot of work and the world needs nonprofits. So we've just got to be clear about how we're going to navigate the space. All right. Well, that's all I have for you for this episode. If you enjoyed what you heard, be sure to hit subscribe. Like be sure to share this episode with somebody in your space if you think that it would help them as a nonprofit leader. But most importantly, be sure to take care of yourself, like you take care of your community. We'll see you next week.

Speaker 1 (22:50):

Thanks for listening. If you enjoyed this episode, subscribe and leave a review on iTunes. Head over to www.amberwynn.net/podcast for the links and resources mentioned in today's podcast. See you next time.

Amber Wynn

Nonprofit expert with over 27 years experience in program development, funding, and compliance

https://www.amberwynn.net
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Episode 112: Running a Nonprofit Business Ain't for the Faint of Heart: Running a Business is Hard