Competition between charities and non-profits has always been there. Funding may not always have been so scarce, but there have always been more organisations seeking funding than there has been funding available. And as now we are into contracts, there is competition for the business as well, which makes the non-profit sector similar to their commercial equivalent.
If you are involved with the voluntary sector, nfpSynergy ‘s report “It’s competition, but not as we know it” will give you a clear insight into the situation and may help your organisation to plan how it will meet the challenges. http://www.nfpsynergy.net