Nonprofits Look To Merges To Save Their Programs

For the sake of their programs, nonprofits that are faced with large financial problems are looking to merge with other nonprofits to save their mission and programs. The current economic climate has put pressure on nonprofit organizations to look at this as a viable option. However, this is not a new phenomenon. Nonprofits have been merging for the past twenty years. This is true in Massachusetts, where I live and I am sure it is happening elsewhere in the country. What is the economic impact? In this state, there are 36,748 nonprofits, an increase of 88% since 1989. Despite the economy and the merges, this number is still growing. The total assets of these organizations in 2007 was $207 billion. If an organization is considering a merger with another, it ought to consider what the new leadership is going to be with regard to management, governance, and financial management. The proposed merged parties need to consider how their programs will merge as well as how they will arrive at a shared vision and ultimately a strategic plan to get there. A vision is a destination. Plan ahead and involve you community. Share your thoughts about mergers with us. Arnold Clickstein