An Unusual Nonprofit Collaboration
Candid and the Council on Foundations reach a unique agreement
A Transfer Heard Around the World
In the world of nonprofits, collaborations that involve transferring control of key assets from one organization to another are rare, if not unheard of; this move was chronicled in this Associated Press article. This recent announcement by Candid, a prominent philanthropy research organization, has defied conventional wisdom. Candid has decided to transfer control of its CF Insights website and the associated staff responsible for gathering information about community foundations to the Council on Foundations, an association comprising nearly 900 nonprofit members. This groundbreaking move has raised eyebrows in the nonprofit sector and is poised to impact the philanthropic landscape significantly.
In this commentary, we will delve into the details of this unusual transfer of assets and the motivations behind it. We will explore the implications of this decision for both Candid and the Council on Foundations, as well as the broader nonprofit sector. Furthermore, we will discuss the potential benefits of nonprofit collaborations and the challenges they face in a sector primarily driven by mission-driven objectives rather than financial incentives.
The Motivation Behind the Transfer
Candid's decision to hand over control of CF Insights to the Council on Foundations is not driven by financial gain, as is often the case in the corporate world. Candid's CEO, Ann Mei Chang, highlights that their primary motivation is to enhance the impact of the information collected by CF Insights. Chang emphasizes that this move allows Candid to sharpen its focus on priority areas within the nonprofit sector, including diversity, transparency, and overall effectiveness. By relinquishing control of CF Insights, Candid aims to provide its valuable information to a broader audience while also enabling the Council on Foundations to expand the platform's reach.
Kathleen Enright, the CEO of the Council on Foundations, underscores the unique role that community foundations play in meeting the diverse needs of their respective regions. Community foundations serve as critical hubs for channeling both federal and local funding into communities, especially during times of crises like natural disasters. They also play a vital role in aggregating philanthropic donations and managing donor-advised funds, making them indispensable civic institutions.
The Transfer's Synergy
The transfer of CF Insights from Candid to the Council on Foundations can be likened to a synergy seen in the corporate world. The information collected by CF Insights can help community foundations benchmark their performance and make informed decisions regarding expansion, compensation, and other critical matters. This valuable resource complements the Council on Foundations' annual surveys on compensation and benefits among community foundations, creating a mutually beneficial relationship.
In nonprofit parlance, where financial incentives are typically absent, such synergistic collaborations are uncommon. Chang acknowledges that nonprofits lack the financial motivation that drives mergers and acquisitions in the business world. In the nonprofit sector, organizations are not buying assets or intellectual property from each other; they are striving to maximize their impact in line with their missions. As such, exploring synergistic collaborations like this requires a unique approach, as both Chang and Enright note.
The Challenge of Nonprofit Collaboration
Nonprofits embarking on collaborations, especially those involving the transfer of assets or responsibilities, face several challenges. Firstly, there is the inherent cost and resource commitment required to facilitate such deals. In the case of the Candid-Council on Foundations collaboration, it took resources from both organizations and an external consultant to bring it to fruition. Smaller nonprofit organizations may find such commitments prohibitive, making large-scale collaborations accessible primarily to larger entities.
Additionally, collaborations demand a willingness to prioritize the needs of the communities and beneficiaries they serve over the interests of the organizations involved. Enright aptly notes that this principle of putting the community first is core to the success of such collaborations. Nonprofits must align their missions and objectives with the greater good, even when it requires giving up control or resources for the benefit of a broader cause.
The Path Forward
Despite the complexities and challenges, the Candid-Council on Foundations collaboration serves as a notable example of nonprofits finding innovative ways to enhance their collective impact. Chang expresses hope that more nonprofits will consider similar collaborations in the future, especially with the support of donors who see the potential for nonprofits to work together more effectively.
This move by Candid aligns with a broader trend of nonprofits seeking ways to pool resources and expertise for the greater benefit of the communities they serve. Candid's recent donation of data to an initiative led by The Aspen Institute, Charity Navigator, CitizenAudit, GivingTuesday, and The Urban Institute further exemplifies this trend. By creating a clearinghouse for the forms nonprofits file with the Internal Revenue Service, these organizations are facilitating transparency and collaboration within the sector.
The transfer of CF Insights from Candid to the Council on Foundations marks a significant milestone in nonprofit collaboration. It underscores the potential for nonprofits to work together more effectively, even when the financial incentives that drive corporate mergers are absent. By prioritizing the greater good and the needs of the communities they serve, nonprofits can find innovative ways to enhance their collective impact.
While such collaborations may be complex and resource-intensive, they hold the promise of creating a more robust nonprofit sector capable of serving the needs of a broader and more diverse population. As the nonprofit sector continues to evolve, it is essential for organizations to explore new models of collaboration and resource sharing to maximize their impact in an ever-changing landscape. The Candid-Council on Foundations collaboration serves as an inspiring example of what can be achieved when nonprofits come together to advance their shared mission of creating positive change in the world.
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