From Tension to Teamwork: Conflict Resolution in Nonprofits

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Unresolved conflicts hurt team morale, create toxic environments, and make it harder to keep and attract good people. These conflicts create a toxic work environment where staff and volunteers feel unsupported and undervalued. From my experience, it is nearly impossible to collaborate and innovate when unresolved conflict is brewing.

In addition, unresolved internal conflicts can spill over and affect donor relationships. Donors expect clear communication, professional conduct, and a harmonious operational environment. When they perceive internal discord, they lose confidence in the organization's ability to use their contributions effectively.  Ongoing conflicts distract the organization from its core mission, leading to missed opportunities and failure to meet key objectives. Ultimately, the overall mission effectiveness is compromised as resources are diverted to managing disputes rather than advancing the nonprofit's goals. Any conflicts in your organization at the moment that need addressing?

Where does conflict come from?

Nonprofit conflicts typically fall into two categories:

• Internal Conflicts: These occur between:

  • Staff members

  • Staff and volunteers

  • Among volunteers

  • Organizational leadership and any of these categories

• External Conflicts: These involve:

  • The organization and donors

  • Beneficiaries

  • Regulatory bodies

  • Organizational leadership and any of these categories as well

  Common sources of conflict, both internal and external, include:

• Differences in values and goals: Often these begin as perceived differences but can quickly escalate.

• Resource scarcity: Limited resources can lead to conflicts over prioritization.

• Power struggles and leadership styles: Conflicts can arise both internally and externally when leadership styles clash or when there are differing expectations from stakeholders.

What to do when a conflict arises

Here’s how to handle conflict when it arises:

1. Acknowledge the Conflict: Trust me, taking a moment to recognize what's happening can save a lot of headaches.

2. Gather Information:

   • Listen actively

   • Ask clarifying questions

   • Ensure you understand the other party's perspective

3. Stay Neutral: Focus on listening before you respond or defend your position.

4. Be flexible and brainstorm together: Encourage all parties to contribute ideas on addressing the issue. This collaborative approach will foster a sense of mutual ownership in the solution.

   Once solutions are brainstormed:

   • Shift the focus forward: Move towards implementing the agreed-upon solutions.

   • Prevent future conflicts: Discuss steps to ensure similar issues don’t arise again.

   • Encourage collaboration: Reinforce the importance of working together."

5. Summarize progress and agree on agreements. Summarize key points, and confirm that everyone is on the same page and committed to the resolution plan, and address any remaining concerns before concluding the meeting.

6. Consider a third-party facilitator. Conflict resolution can be nearly impossible when you and those involved are in an emotionally charged conflict. This external support can be particularly valuable when dealing with deeply entrenched issues or when previous attempts at resolution have failed. Engaging a third-party facilitator demonstrates a commitment to finding a constructive and lasting solution, ultimately benefiting the entire organization.

The Long-Term View

As long as your organization is composed of humans trying to work together, there will be conflicts. Healthy disagreements drive innovation and increase engagement. They are natural and healthy, but you need a longer-term view of how your organization will get the most benefit with the least cost from the conflict you experience.

For long-term conflict management:

• Implement Feedback Mechanisms: Consider weekly huddles, volunteer surveys, and structured communications with stakeholders.

• Monitor Feedback: Keep an eye out for signs of emerging conflicts.

• Develop Conflict Resolution Processes:

  • Create clear policies

  • Train staff

  • Form committees to review feedback regularly.

The Role of Leadership

While strategies and processes are crucial for conflict resolution, the real driver behind successful implementation is effective leadership. Leaders set the tone for how conflicts are managed within a nonprofit. By modeling open communication and constructive dialogue, leaders inspire their teams to approach disagreements positively. Active listening, empathy, and fair discussions are key traits of a leader who can defuse tensions and build trust.

In addition to setting an example, leaders must establish clear conflict resolution policies and provide the necessary training and resources. Regularly engaging with teams, understanding underlying issues, and addressing them early are essential for maintaining a healthy organizational culture. Proactive leadership in conflict management helps retain donor trust, keeps the nonprofit mission-focused, and fosters a collaborative environment.