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Competitive Advantage: Knowing Your Value & Setting Yourself Apart

Author: Arts Midwest

The things that make your nonprofit special are assets you can leverage to build community and monetary support. This article helps you identify the qualities that make your organization different and make them work to your advantage.

Reading Time: 6 minutes

Strategy Fundraising Communications

Thinking about being competitive can push artists and nonprofit leaders outside their comfort zone. The mission-driven ecosystem thrives in a spirit of cooperation, not competition.

However, every nonprofit organization has qualities that differentiate it from others doing similar work. Understanding what makes your organization distinctive, and the value that creates, will help you attract people and funding, ultimately allowing you to make a greater impact. How can you stand out from others, and apart from the noise?

First, let’s simplify terminology

“Set Yourself Apart” = “Differentiation” = “Competitive Advantage”
Your ability to make a difference in your community by using your unique skills or knowledge, or by doing outstanding and creative work, is what makes you special. This uniqueness can be called many things, but they all mean the same thing.

Image description: A graphic with five rows outlining different types of competitive advantage. The first reads “Asset Advantage. Space, place, history, relationships, expertise.” Then “Product Advantage. Superior offerings and outcomes.” Then “Market Knowledge Advantage. Specialized services for specific communities.” Then “Delivery Advantage. Efficiency, low cost, transparency, accountability.” Lastly, “Service Advantage. Customer experience, special offerings based on needs.”

Pro tip: Competition and collaboration are not mutually exclusive!
You can know and lean into your special qualities without considering it a competition with your neighboring organization. You can still be collaborative while knowing and promoting the ways that your organization stands out. At the end of this post, we have a worksheet with instructions to help you do just that.

Hop down to the worksheet >>

Start Big: How do you identify what makes you special?

Getting clear on what makes your organization special is a great exercise for your entire team. It’s not just about identifying what you do well, but what is the highest value to your community. Once you have the answers, building assets and strengths to create a niche that is distinctly recognizable becomes so much easier!

Get Detailed: What are some specific ways you can set yourself apart?

Simply saying that your organization is unique isn’t enough. The question is HOW are you unique. Breaking it down into the following categories is a helpful way to identify ways that you are truly unique from others.


  • Do you have a recognizable location or specialized building?
  • Is your board of directors particularly well-connected or offer key partnerships?
  • Do you have strong reputation or name recognition, or a compelling history or backstory?
  • Is your base of funding and support diversified, flexible, and stable?


See asset advantage in action >>



  • Do you provide a service or product that nobody else offers in your market?
  • Do your product or program offerings result in measurably superior outcomes?


See product advantage in action >>



  • Are you rooted in a specific community that you are focused on serving?
  • Do you have specialized knowledge of the community need and customer base?


See market knowledge advantage in action >>



  • Does your work produce measurably high-quality results?
  • Are you able to operate at a lower cost than others serving a similar need?
  • Are your internal processes transparent and accountable?


See delivery advantage in action >>



  • Do you prioritize the customer experience above all else?
  • Do you offer specialized programs addressing particular customer needs, such as language or cultural knowledge?


See service advantage in action >>


Pro tip: It’s unusual for an organization to truly have advantages in all areas above.
While it’s possible to do well in many of these categories, it’s most important to identify one or two where your organization excels beyond all others. This is a true point of differentiation that you want people to remember you for. Are you ready to give it a try?

Hop down to the worksheet >>

See it in action

Curious how other organizations have started to identify their value to set themselves apart? Here are a variety of examples that show just how beautiful it can be to know and communicate the special qualities of an organization.

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Somali Museum of Minnesota

Here is an example of an Asset Advantage. The Somali Museum of Minnesota is the only museum in the world that is dedicated to Somali culture.

Visit Website

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Stuart’s Opera House

Here is another example of an Asset Advantage. The Stuart’s Opera House is a beautifully restored historic theater and is the cornerstone of the public square.

Visit Website

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Mizna

Here is an example of a Product Advantage. Mizna publishes Mizna: Prose, Poetry and Art Exploring Arab America, the only Arab American lit and art journal in the country; and produces the Twin Cities Arab Film Festival, the largest and longest-running Arab film fest in the Midwest.

Visit Website

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30,000 Feet

Here is an example of a Market Knowledge Advantage. Founders Vanessa Young and Kevin Robinsons grew up on the East Side and used their lived experience to start 30,000 Feet, a nonprofit that empowers African American students in Saint Paul through programs rooted in black culture, art, technology, and social justice.

Visit Website

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CLUES: Comunidades Latinas Unidas en Servicio

Here is an example of a Service Advantage. CLUES provides a wealth of opportunities through programs and services that are accessible for all.

Visit Website

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Mixed Blood Theatre

Here is an example of a Delivery Advantage. In 2011, Minneapolis’s Mixed Blood Theatre launched their Radical Hospitality program, removing fees to their live performances.

Visit Website

Try it for yourself

Are you feeling inspired? It’s time to try it out using our worksheet, available in two formats: Word Document and PDF.


Download Worksheet – Word Doc


Download Worksheet – Fillable PDF

Step 1: Start by brainstorming around these questions

  • What are we best at, using our core or most developed competencies?
  • How will our community be damaged if we close our doors and move away tomorrow?
  • What differentiates us from other groups within our discipline, our field, our community?

Step 2: Identify your competitive advantage
Take your time thinking through the common types of competitive advantage to help you name your own. Most organizations have no more than one or two true competitive advantages. What is your competitive advantage? Be specific.

 

Explore Related Resources

Finding Your Hedgehog

Your competitive advantage is closely related to “what you can be best in the world at,” a core part of identifying your Hedgehog, an insightful strategic tool. This article suggests a starting point for identifying a strategic direction.

Learn More


Connecting What and Why

People will respond more deeply to knowing why you do something, as opposed to knowing what you do. This article helps you focus on effectively communicating your passion.

Learn More


Strategy Screens: Asking the Right Questions to Make the Right Decisions

Your competitive advantage is an important part of creating Strategy Screen. This article helps you bring your competitive advantage into your decision-making processes.

Learn More

 

Resources used in developing this tool:

La Piana Consulting: The Nonprofit Strategy Revolution