How do we design funding, procurement, policy and commissioning systems that enable collaboration?

The sector needs to collaborate more.

If you work in, with or as part of, Australia’s Not for Profit sector, you’ve probably heard this phrase countless times.

It appears in strategy documents, policy discussions and conference presentations. It’s become one of the most common observations about the future of human and social services.

But after spending time with hundreds of our Members and NFP organisations across the country, we don’t believe collaboration is the sector’s biggest challenge.

Community organisations collaborate every day.

They share referrals, coordinate local responses, co-design services, convene partners, work across disciplines, and build relationships that help people navigate increasingly complex service systems. For many organisations, collaboration isn’t a special project or strategic initiative. It’s simply how good community services are delivered.

In fact, we think the wrong question is being asked. The real question is whether the systems surrounding them make collaboration easier or harder?

Collaboration is already happening

Across Australia, NFP organisations rarely work in isolation.

An employment service may partner with a housing provider. A disability organisation may work alongside mental health, legal assistance and financial counselling services. Settlement organisations collaborate with schools, employers, and community groups. Aboriginal Community Controlled Organisations coordinate culturally safe responses across health, education, justice and community wellbeing.

These partnerships often develop because communities demand them. Not because funding contracts require them.

People don’t experience life through government portfolios or program boundaries. They experience interconnected challenges that require coordinated responses.

The sector understands this, yet the systems around it don’t always make it easy.

Five Systemic Barriers to Collaboration

If we genuinely want stronger collaboration across Australia’s human and social services sector, we need to look beyond organisational behaviour and examine the systems we’ve built around it.

1. Competitive Procurement

Many funding models encourage organisations to compete for finite resources, even when collaboration would deliver better outcomes.

Relationships built over years can be disrupted overnight through procurement cycles that reward competition over continuity.

The growing conversation around relational contracting recognises that trust, capability and community relationships are assets — not risks — and that procurement should strengthen, rather than fragment, local ecosystems.

2. Short-Term Funding

Collaboration takes time.

Trust cannot be built in short-term funding cycles.

When organisations are constantly preparing for the next tender or contract renewal, investing in long-term community partnerships become fragile and difficult to sustain.

If we want sustained collaboration, funding arrangements must provide the confidence to plan beyond the next reporting or tender period. 

3. Program Silos

Communities don’t organise themselves into government portfolios.

Someone experiencing housing insecurity may also need employment support, financial counselling, mental health services and family support.

Yet funding, reporting and accountability often remain separated into individual programs.

Integrated community outcomes require systems that recognise the reality that people’s lives are interconnected.

4. Measuring Activity Instead of Outcomes

Too often, organisations are asked to report on outputs rather than outcomes. 

  • How many appointments?
  • How many participants?
  • How many referrals?

These measures matter, but they don’t always tell us whether people’s lives have improved.

When funding focuses on shared outcomes rather than isolated activities, collaboration becomes a practical advantage rather than an administrative burden. 

This shift towards outcomes-focused commissioning is beginning to reshape conversations nationally. And rightly so.

5. Relationships Are Real Work

Perhaps the greatest misconception is that collaboration simply happens because organisations are willing. It doesn’t.

Relationships require time.

Coordination requires leadership.

Trust requires consistency.

These are not overheads to be minimised. They are the work.

Yet the time required to build and sustain collaborative partnerships is rarely recognised within funding models.

What Makes Collaboration Possible?

One phrase increasingly appearing in public policy discussions is “authorising conditions”. 

It sounds technical, but the idea is surprisingly simple: collaboration succeeds when systems create the conditions that allow it to succeed.

Those conditions include:

  • Longer-term funding certainty.
  • Trust-based relationships between government and providers.
  • Flexible funding that enables NFP organisations to respond to community need.
  • Shared measures of success.
  • Time to build partnerships.
  • Permission to innovate and adapt.
  • Accountability that values collective impact.

Without these conditions, organisations often spend more time navigating systems than solving problems.

We’re Already Seeing What’s Possible

Across the Amplify Alliance network, our Members are demonstrating what collaboration looks like in practice.

Whether it’s organisations working together to support people into employment, community-led responses to housing insecurity, partnerships that strengthen settlement outcomes, innovative social enterprise models, or Aboriginal Community Controlled Organisations leading place-based solutions, the common thread is the same.

Collaboration already exists. What varies is whether the broader system supports it.

This reminds us that collaboration isn’t something organisations need to learn.

It’s something our systems need to better recognise and enable.

Why The Timing Matters, Especially Now

This conversation is particularly relevant because so many national reforms are asking versions of the same question.

The 10-Year Not-for-Profit Sector Development Blueprint calls for stronger partnerships, sustainable funding and a more capable sector.

Employment Services Reform is exploring how services can become more responsive to people and communities.

Relational contracting is changing how governments think about procurement.

NDIS reform is demanding massive savings while still expecting communities to maintain quality support for people living with disability. As is reform around aged care, workforce relations and a range of other human and social services, and workforce.

Place-based approaches are recognising that local knowledge matters.

Social enterprise is creating new opportunities for collaboration between purpose and enterprise.

Outcomes-focused commissioning is encouraging us to measure success differently.

While these reforms may appear separate, they are connected by a common ambition: creating systems that support collaboration rather than unintentionally working against it.

That’s the conversation worth having.

Designing Better Systems

No single NFP organisation can solve today’s social challenges alone.

Equally, no funding model, procurement process or policy reform will succeed without recognising the expertise that already exists within communities.

The opportunity ahead is not simply to ask organisations to collaborate more, it is to design systems that make collaboration the easiest, and most effective, way to work.

That requires governments, funders, community organisations and peak bodies to move beyond good intentions and towards shared responsibility for creating the conditions that enable lasting partnerships.

It also means recognising the unique contribution of the for-purpose sector. Every dollar reinvested into stronger services, local capability, workforce development and community connection creates value that extends well beyond a financial return. It strengthens the social infrastructure that enables communities to participate, adapt and thrive.

Collaboration is already happening across the NFP sector, the next challenge is designing the policy, funding and commissioning systems that enable it to thrive.

At the 2026 National Not-for-Profit Summit, Amplify Alliance will bring together leaders from the NFP sector, government and academia to explore practical ideas, challenge conventional thinking and help shape stronger systems for stronger communities.

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