In today’s lean nonprofit funding environment, organizations are turning to a variety of partnerships not as a luxury, but as a necessity.

At a recent Healthy Nonprofit Network Roundtable, we heard about how organizations facing capacity gaps or operational challenges may consider alliances, unique affiliations, or mergers as a stabilizing strategy. In this article, we look at a real-world example of an unlikely but mutually beneficial alliance from the business sector and what nonprofit organizations of all sizes can learn from it.

Office Parties Get A Nationwide Glow-Up

A major corporate alliance recently made the national news: Staples set up Party City supply sales at 700 stores. Staples is bringing Party City back to life through a nationwide in‑store partnership, adding balloons and party supplies to its locations as it looks to fill the gap left by Party City’s store closures and create a one‑stop shop for celebrations.

“As we take the new Party City to more places than ever before, finding the right partners is essential,” Ad Populum CEO Joel Weinshanker said in a statement. “Staples stood out immediately, not only for its national footprint, but for its strong connection to the communities we have both been part of for years.”

This partnership has a clear benefit for both companies. Staples gains new product offerings that draw customers into stores, helping offset declining demand in its traditional office supply business. Party City, in turn, regains a national retail presence without the overhead costs of reopening standalone stores. By tapping into each other’s strengths (Staples’ footprint and Party City’s brand recognition), both organizations can withstand changing market conditions better than they could alone.

Building Nonprofit Partnerships That Actually Work

Every organizational strategy carries risks and potential rewards, whether you’re a small rural nonprofit or a national chain of big box stores. The main principle is the same in either context: organizations that strategically align their strengths are better positioned to adapt and thrive.

Key takeaways from this story for nonprofits:

• What may seem like an unlikely partnership may actually be a mutual win. Partnering, even with a competitor, may be worth considering when each organization brings strengths that address the other’s needs. Competitors can become strong collaborators when pursuing a shared goal, whether it’s cross-promoting services to increase one another’s visibility and reach or co-locating to make it easier to access services.
• Map your assets and gaps. Get clear on your individual and organizational strengths and where you need support from a collaborator. Being clear about both allows you to make an effective pitch about what you bring to the table and seek out collaborators who operate well in your weaker areas.
• Find ways to lean on one another and work smarter, not harder. When your organization’s funding or cash flow is lean, operational efficiencies are critical. Finding creative solutions for sharing resources or coordinating efforts with an external partner can help you sustain your impact, rather than being forced to scale back.

Related Resources from the Healthy Nonprofit Network (HNN)

There is no one-size-fits-all solution to partnerships, but with a thoughtful approach, they can be a powerful tool for resilience and growth. Check out these materials for tips from decades of nonprofit leaders’ real-world experiences:

• Unity for Impact Roundtable Series: Resources and advice nonprofit leaders have shared during recent live sessions on Future Ready Partnerships and Nonprofit Consolidation and The Strategic Case for Fiscal Sponsorship. Sign up for our upcoming session: Healing Organizational Relationships.
• Blog Post: Unlocking Sustainable Success: The SAUCE of Authentic Partnerships. The HNN team introduces an approach to improving the quality and impact of your organizational relationships, summed up with the acronym SAUCE.
• [Coming Soon!] Handout: Key Tips for More Authentic Nonprofit Collaboration: Tips and reflection questions to help you develop authentic, impactful partnerships that make sense for all parties.

Learn more about the type of support we offer, or submit a request to meet with the Healthy Nonprofit Network’s coaches to get free individualized help for your community based organization.