From housing to the environment, our society’s most pressing challenges cannot be addressed by one entity alone. They are complex and interconnected and require the kind of resources, insights and authority that no single group can provide. If we want to drive an issue forward and create long-term systemic change, we must prioritize collaboration—a key element of public-private partnerships (P3s) that unite all sectors behind a common goal.

Public-private partnerships can not only be transformative, but they are also efficient and cost-effective ways to approach major issues. Throughout history, these relationships have made ambitious projects possible and accelerated their completion to address unmet needs with urgency. Take our transportation infrastructure, for example. In 1792, the state of Pennsylvania constructed America’s first toll road using a P3 model when the Commonwealth couldn’t finance its construction.

Leveraging the Strengths of Public-Private Partnerships

P3s serve as a way to bridge the gap, especially in instances when government funding falls short of what’s needed to invest in solutions. For instance, the Organization for Economic Cooperation and Development (OECD) reported recently that the global infrastructure investment gap is roughly $2.5 to $3.5 trillion per year. Advancing quality infrastructure projects that are environmentally and socially sustainable calls for the mobilization of private sector support.

But while there is interest in growing P3s, they are still underutilized, particularly in areas beyond infrastructure development. To take full advantage of their power, we must recognize that these partnerships aren’t just about investments. They create policy changes and move us forward while putting the interests of community members first.

P3 projects have the potential to provide high-impact solutions to equity-based, community-driven issues ranging from poverty to housing and food security. But to succeed, private organizations and public agencies must lean into their unique strengths. For nonprofits, that can look like a deep understanding of community needs and the trust of individuals they serve; companies can bring access to capital and opportunities, while local government provides regulatory support and the framework to implement solutions at scale.

Read the full article about public-private partnerships by Taryn Palumbo at Forbes.