Thinking of a merger? Here’s some advice

The December Chronicle of Philanthropy included an article discussing nonprofit mergers as a tool for charities facing tough times. Mergers are often encouraged by funders in both good times and bad because of the perception that many nonprofits duplicate programs and services. Nonprofits, however, largely maintain that they fill unique niches, offering distinctive programs or serving unique communities.

As the economy gets worse, funders are putting more pressure on organizations to merge to take advantage of efficiencies and economies of scale and address financial distress. Mergers are also often sought as a way to address the departure or retirement of chief executives.

If you are considering a merger or acquisition, click here for the article and to access a transcript of an online discussion with its authors, William Foster and Alex Cortez.