Principles & Practices Online

Strategic Alliances

man and laptopStrategic alliances can take many forms and can serve multiple purposes, such as partnership, sharing of resources and improved operational efficiency. Strategic alliance options increase in the degree of formalized commitment and involvement with other organizations as they move along the continuum of options. The strategic alliance continuum of options begins with simple, short-term cooperative agreements and ends with merger or acquisition. Generally speaking, it is best to use the simplest form of alliance that will satisfactorily accomplish the desired outcome.

Strategic alliances ensure that community needs are met while also helping to strengthen individual nonprofit capacity, as well as the capacity of the sector as a whole. Organizations should be open to strategic alliances and, when appropriate, should partner with other organizations to enhance their capability to achieve desired results. Nonprofits should work to promote cooperation and coordination among a variety of entities to avoid unproductive duplication of services and to maximize the resources available to the communities they serve.

Key aspects of Strategic Alliances: