The Nonprofit Sustainability Initiative (NSI) San Diego is a pooled fund fiscally sponsored by Catalyst of San Diego & Imperial Counties inviting applications from September 1, 2026 onward to support non-profit organizations pursuing formal sustained collaboration partnerships that increase mission impact, organizational effectiveness, and long-term sustainability.

In reviewing applications, preference will be given to partnerships that demonstrate the potential to improve outcomes for people and communities facing systemic barriers. This includes organizations working in health, economic mobility, civic participation, education, environmental justice, and overall well-being.

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Strengthening Nonprofits Through Collaboration

Collaboration is one of the most powerful paths towards sustained impact, and yet it is often one of the most under-resourced. Many nonprofits lack access to the flexible, discretionary funding required to navigate complex transitions while continuing to deliver on their missions.

NSI San Diego helps close that gap by supporting a range of collaboration models, including:

  • Jointly managed programs
  • Back-office consolidations
  • Shared ventures
  • Full-scale mergers.

With the right support in place, organizations can reduce duplicative work, strengthen internal operations, and focus more of their time and energy where it matters most: serving their communities.

Responding to a Changing Nonprofit Landscape

Nonprofits today are facing increasingly destabilizing conditions that threaten their long-term viability. Federal funding cuts, heightened scrutiny, and shifting policy environments have changed what risk looks like and how quickly it can compound. The pace of these challenges means organizations are losing capacity faster than it can be rebuilt.

NSI San Diego responds to these challenges by investing in the kinds of structural supports that help nonprofits adapt, stabilize, and continue serving communities.

 

An Opportunity for Funders

For funders, NSI San Diego offers a high-leverage opportunity to invest in a healthier, more coordinated nonprofit ecosystem locally. By supporting collaboration and shared solutions, funders can:

  • Help strengthen organizational impact
  • Extend the impact of their dollars
  • Support long-term sustainability

This approach builds on proven models from across the country, including the Los Angeles–based Nonprofit Sustainability Initiative, which has supported nonprofit collaboration and impact since 2012. NSI San Diego is also a member fund of the national Sustained Collaboration Network.

About the Fund

What is sustained collaboration?

Sustained collaboration refers to formal partnerships that permanently reshape how participating organizations pursue their missions and deliver impact. These partnerships exist along a continuum, ranging from jointly managed programs and shared back-office functions to strategic alliances, shared ventures, parent-subsidiary structures, and full organizational mergers.

What is the goal of NSI San Diego?

The goal of NSI San Diego is to normalize sustained collaboration as a proactive strategy for strengthening mission impact, organizational resilience, and long-term sustainability. We seek to create an environment in which nonprofit leaders, funders, and consultants regularly consider collaboration as one of many tools for advancing community outcomes in a rapidly changing landscape.

NSI resources are intended to help organizations thoughtfully explore, plan, and implement transformational partnerships. Grant funds are not designed to address ongoing budget commitments or backfill existing operating deficits. Rather, they are intended to provide organizations with the resources, expertise, and support needed to navigate significant organizational transitions and position themselves for their next phase of impact.

What is NSI San Diego’s funding approach?

NSI San Diego is designed as a multi-phase investment strategy that supports organizations as they move along the continuum of sustained collaboration, from initial exploration through implementation.

NSI San Diego currently offers two types of funding opportunities for nonprofit organizations pursuing sustained collaboration:

  • Exploratory Grants support organizations that are ready to engage in structured discussions regarding a potential strategic partnership.
  • Implementation Grants support organizations that have reached an agreement to pursue a formal collaboration following an exploratory process.

Organizations are not required to apply for multiple phases of funding. However, applicants are encouraged to leverage NSI resources as their collaboration evolves and new needs emerge over time.

For example, organizations may initially receive an Exploratory Grant to support due diligence, negotiation, and partnership development, and later return to request Implementation funding as they move toward a formal agreement and its execution.

To support a broad range of collaborations while maintaining equitable access to resources, the cumulative amount of NSI funding awarded to any single collaboration is generally capped at $90,000 across all phases of funding.

What are Exploratory Grants?

Exploratory Grants support two or more organizations that are ready to engage in structured discussions regarding a potential strategic partnership.

Organizations receiving Exploratory Grant funding are not committing to a specific outcome. Rather, they are committing to participate in a good-faith process of exploration, due diligence, and negotiation to determine whether a partnership would advance their missions and better serve their communities.

Potential activities may include:

  • Strategic assessment and readiness discussions
  • Facilitation and negotiation support
  • Organizational due diligence
  • Governance and leadership conversations
  • Financial and operational analysis
  • Exploration of partnership models

Partner organizations submit a joint application. One organization is designated as the lead applicant and receives funding on behalf of the collaboration.

Exploratory Grants typically range from $20,000–$40,000.

Funds are intended primarily for third-party consultants and technical assistance providers supporting the exploratory process. 

Exploratory Grants may not be used to support staff time. Grant funding may not cover the full cost of exploration, and organizations are encouraged to leverage additional resources where appropriate.

What are Implementation Grants?

Implementation Grants support two or more organizations that have reached an agreement to pursue a formal collaboration following an exploratory process.

Examples of eligible costs include:

  • Financial and accounting services
  • Technology and systems integration
  • Human resources integration
  • Communications and branding
  • Board development and governance transition
  • Asset consolidation
  • Lease termination costs
  • Staff transition and severance expenses
  • Legal fees (when pro bono resources are unavailable)

Implementation Grants typically range from $20,000–$50,000.

Grant funds are intended to support one-time implementation and transition costs. Ongoing operational expenses will generally not be considered. While implementation funding is primarily intended for external costs, organizations may request support for limited staff-related expenses if they can demonstrate a unique, time-bound role that is essential to successful implementation.

Implementation Grants do not typically cover the full cost of implementing a partnership, and organizations are encouraged to leverage additional organizational and philanthropic resources.

How can I apply?

Applications will open on September 1, 2026 and we will accept rolling applications. Sign up for the NSI San Diego newsletter to be alerted when applications open. 

How can I become a part of the NSI San Diego consultant list?

NSI San Diego has received feedback from organizations interested in applying for funding that they would welcome access to a list of consultants that are experienced in supporting the exploration and implementation of sustained collaboration agreements. We are in the process of curating such a consultant list and will offer guiding questions as a point of reference to nonprofit organizations who are vetting  potential consultants.

  • Organizations applying to the NSI are NOT required to use consultants from the list. 
  • The NSI does not warrant or guarantee the work of the consultants on the list.
  • The list and the information provided by each consultant are meant only to provide guidance, information, and resources.
  • Selecting a consultant from the list does NOT guarantee that the request for NSI funding will be granted.
  • Nonprofits are encouraged to contact multiple consultants and conduct their own due diligence in determining which consultant is the best fit for their anticipated project.

Geographic Eligibility

To be eligible for NSI San Diego funding, the lead applicant organization must be based in and/or demonstrate meaningful presence, benefit and impact within San Diego County.

Organizations may also serve additional geographies, including neighboring counties, statewide populations, tribal communities, and/or communities in Mexico, provided the proposed collaboration delivers clear, significant benefit to San Diego County residents and organizations.

Applications focused primarily or exclusively outside of San Diego County are not eligible for funding.

Organizational Eligibility

Collaborations must involve at least two organizations working together to explore or implement a formal partnership.

Eligible applicants include:

  • Organizations with 501(c)(3) nonprofit status
  • Organizations fiscally sponsored by a 501(c)(3) nonprofit
  • Tribal governments

For grant administration purposes, one organization must be designated as the lead applicant and fiscal recipient. Up to eight partner organizations may be formally listed on the application, and all named partners are expected to participate in the application process and provide relevant application materials. Collaborations involving a larger number of organizations may describe additional participating partners within the proposal narrative.

Application Process

Once the fund goes live on September 1, 2026, applications will be reviewed and funding decisions made once a month by the NSI San Diego Managing Funders Committee to ensure responsiveness to organizational momentum, emerging opportunities, and ecosystem needs.

Organizations are encouraged to apply when they are ready to engage in meaningful exploration or implementation activities rather than waiting for a fixed grant cycle. NSI San Diego recognizes that partnership development and implementation timelines vary significantly across organizations and therefore maintains a flexible approach to grant periods. Applicants are encouraged to propose timelines that reflect the complexity and needs of their collaboration process.

Board Engagement

Given the significant organizational implications that may accompany a sustained collaboration process, applicant organizations are expected to engage their boards of directors prior to submitting an application. Applications must include a board resolution demonstrating that the board has been informed of and supports participation in the proposed exploratory or implementation process.

For collaborations involving multiple organizations, each participating organization should provide evidence of appropriate board awareness and authorization.

Consultant Engagement

Applicants are required to identify a consultant or consulting team prior to submitting an application.

Applications must include the consultant’s proposal and/or scope of work, including anticipated deliverables, timeline, and budget. Consultant selection should be based on the specific needs of the collaboration and the expertise required to support the proposed work.

This work is supported by the below organizations, as well as institutional and individual donors who have chosen to remain anonymous.