1. Catalyst – Learning Circle
Increase Income & Impact
Build Strategic Partnerships
S.F.T.G Associates, Int’l.
May 8, 2012

2. Agenda
I. Goals for Today’s Learning Circle
II. Introductions
III.Why Explore Partnerships
IV.The Assessment
V. Find a Partner
VI.Critical Planning
S.F.T.G Associates, Int’l.
5/8/12

3. Goals for Today’s Learning Circle
 Understand if a Partnership Makes
Sense
 How to Assess your Organization
 After Assessment – What are the Next
Steps
 Take Your Work Back to Your Office
S.F.T.G Associates, Int’l.
5/8/12

4. Build Strategic Partnerships
Introductions
S.F.T.G Associates, Int’l.
5/8/12

5. Why Explore Partnerships
 Create a broader continuum of programs and services
 Serve greater numbers of people in need
 Create operational economies of scale and efficiency
 Generate a broader array of funding sources
 Garner greater public visibility and awareness
 Create a greater political voice and influence
 Build larger market share and better market positioning
 Create more career opportunities for staff
Partnerships Take Time, Effort and Energy
S.F.T.G Associates, Int’l.
5/8/12

6. When is a Partnership or Merger Not a
Good Strategy???
 Primary purpose is immediate cost savings
 The costs are initially slightly higher due to one-time costs of execution
 attorney
 consultant fees
 printing
 moving
 Solely because an agency wants to meet the demands of a single funder or
funding stream
 An Executive Director wants to arrange it (along with his/her future role in
the merged organization) without Board involvement
 Two Board Chairs, as good friends, discussed it and thought it should happen
without discussing the idea with Staff
S.F.T.G Associates, Int’l.
5/8/12

7. When is a Partnership or Merger
Appropriate??
 When the level of integration and synergy sought by the potential partners
cannot be achieved otherwise
 Clients and the community already think of the potential partners as the same
organization
 A larger consolidated organization is needed to compete with other large
nonprofits or businesses
 The organization cannot sustain and renew itself.
 Ultimately, a partnership or merger is appropriate when an agency cannot
properly address its organizational issues or client needs by itself
S.F.T.G Associates, Int’l.
5/8/12

8. Now it is time to Analyze
 Mission Statement
 Programs Complement Mission
Statement
 SWOT Analysis
 Gap Analysis
 Internal Assessment
S.F.T.G Associates, Int’l.
5/8/12

9. Now it is time to Analyze
Let’s do the work . . .
S.F.T.G Associates, Int’l.
5/8/12

10. Identify Potential Partners
Do you have positive past experiences
collaborating with the organization?
Do you have a good degree of trust with this
organization?
Do you have complementary strengths and
weaknesses?
Seek the organization(s) that are the best fit
culturally and have similar values with yours
S.F.T.G Associates, Int’l.
5/8/12

11. Foundation for Success
 Both organizations need to commit to exploring the partnership in good faith
to develop a joint Intent to Partner
 A joint partnership task force consisting of the same number of members
from each organization Executive Director
 3-5 board members with differing expertise and/or knowledge:
 organization in programs
 finance/funding
 marketing
 human resources.
 Collectively agree on the partnership’s purpose and desired outcomes.
 Collectively develop consensus on the purpose
S.F.T.G Associates, Int’l.
5/8/12

12. Foundation for Success
 Consider possible partnership structures to consider how you would achieve
this purpose
 Identify the critical issues that must be addressed through the negotiation
process
 All must agree to keep conversations and information shared during the
process confidential except for jointly agreed-upon communications
 Take the time to complete all steps in developing this Partnership Letter of
Intent.
S.F.T.G Associates, Int’l.
5/8/12

13. Next Steps . . .
Implementation and Integration
These stages can be challenging, so it is
recommended that a neutral, third-party
professional assist in facilitating these steps
S.F.T.G Associates, Int’l.
5/8/12

14. Build Strategic Partnerships
Questions?
S.F.T.G Associates, Int’l.
5/8/12