Collaborations and Mergers: What is the best strategic choice for your organization?

One of the key questions for nonprofit leadership to answer is “Do we need to always go it alone or can we collaborate or merge with another organization to enable our programs and services to become more effective with greater positive outcomes?” Collaboration is a key strategy for program effectiveness and funders are often keen on it, too. It requires competent and secure leadership from both sides who can trust and respect each other. Organizations that work collaboratively can obtain greater financial resources, recognition and rewards for their efforts, especially when facing competition for finite resources.Mergers can make sense when the combined new organization will offer a wider array of services, improve the efficiency of infrastructure, expanded geographical community outreach, improved fundraising and brand identity creating a greater value for each community served. A merger should improve the strategic position of both organizations and create a viable means for sustaining their collective missions for years to come.

Questions to ask yourselves:
  • What new or expanded programs can be enhanced through collaboration?
  • Have you discussed program collaboration with your funding sources?
  • Have you identified potential candidates that may be interested in exploring a merger?
  • How would you define a successful outcome of the merger?
  • Would those you serve in your community be better off if you merged?
  • Is your Board and key executive leadership interested in exploring either a collaboration or a merger?

Please contact me for a confidential conversation to explore this topic for your own organization.