Mergers can occur in the nonprofit world. Nonprofits can merge programs and entire organizations with other like nonprofits
The questions are simple; is the nonprofit a good fit, can you expand your mission and services in the areas you have defined, do you share a mission and vision, are your boards going to be strengthened, will your funding expand, can you protect your reputation and brand & how successful can you be with staff buy-in and support?
If so, a Nonprofit merger is worth exploring
Researched materials and links:
http://www.burlingtonassociates.com/files/2513/4463/1037/1-Making_of_a_Nonprofit_Merger.pdf - The Making of a Nonprofit Merger Bridging the Organizational Divide by John Emmeus Davis, Founder
Excerpt from Bridgespan’s Publication “The troubled economy has put merging with or acquiring another organization front and center on the radar for the senior managers of many struggling nonprofits. Indeed, a Bridgespan Group poll of nonprofit executive directors found that 20 percent of 117 respondents stated that mergers could play a role in how they respond to the economic downturn. These leaders may consider mergers and acquisitions (M&A) re-actively, as a way to shore up finances, to make their organizations appear more attractive to funders or to address a succession vacuum. But the time is also ripe for the leaders of healthy organizations to consider M&A proactively—as a way to strengthen effectiveness, spread best practices, expand reach and—yes—to do all of this more cost-effectively, making best use of scarce resources. Unfortunately, few organizations or funders think of M&A in this way.” By bridgespan.org/Publications-and-Tools/Funding-Strategy/Nonprofit-Mergers-and-Acquisitions
“Methods for classifying and defining mergers and strategic restructuring Structural realignments of nonprofit organizations are often grouped into alliances, which do not involve change to the corporate structure, or integrations, which do. They include management service organizations, joint ventures, parent/subsidiary relationships, and mergers. For purposes of this research study, a merger is defined as an integration or combining of two or more separate organizations into one legal entity. Under this definition, program, administrative, and governance functions are all combined.”By Joint research project of MAP for Nonprofits and Wilder Research March 2011