Certified Nonprofit Professional Practice Exam

Which of the following is a benefit of collaboration between nonprofits?

1. Increased competition among organizations

2. Greater resource sharing and impact

3. Less accountability to stakeholders

4. Reduction of community trust

The correct answer is: Greater resource sharing and impact

Collaboration between nonprofits primarily leads to greater resource sharing and impact, making this option the most beneficial outcome of such partnerships. When nonprofits work together, they can pool their resources—whether financial, human, or informational—to achieve shared goals more efficiently. This synergy often enables them to tackle larger projects, expand their reach, and ultimately serve their communities more effectively. For example, by combining efforts, organizations can reduce operational costs, increase service delivery, and create a more significant positive impact on the populations they serve. Additionally, collaborative efforts often lead to innovative solutions that might not have been possible for a single organization to achieve alone. On the contrary, increased competition among organizations does not serve to benefit the overall mission of nonprofits, as it can lead to fragmentation rather than unity. Less accountability to stakeholders negatively impacts transparency and trust, essential components for nonprofit organizations that rely on support from the community and donors. Finally, the reduction of community trust undermines the integrity and effectiveness of nonprofits, as strong community relationships are vital for sustaining support and engagement. Hence, the choice that highlights collaboration as a means to maximize shared resources and impact is the most accurate representation of the benefits of nonprofit partnerships.