Mergers and alliances can be a useful way for non-profits to move forward in difficult times but it requires active donor involvement, suggests a briefing document from Arabella Advisors and the Steans Family Foundation. The brief explores what donors should know when considering investing in mergers and alliances, and looks at some of the successes, challenges and trends involved.
Mergers can contribute to a more effective charity sector in the UK, argues a recent report from New Philanthropy Capital. By bringing together organizations with similar missions, they can improve existing services, create new benefits and save money. However, if not done well they can destroy value, What Place for Mergers between Charities? offers examples of successful mergers and highlights sectors where there is a compelling case to look at mergers. The report argues that it should be part of a trustee’s role to consider whether a merger could help an organization to fulfil its charitable purpose more effectively. It calls on trustees and managers to think beyond the limits of their own organization, and think instead of what would produce the best results for those people the charity is trying to help.