Strategic Mergers in Nonprofits: Opportunities & Considerations

Participating in the workshop with Libra Forde and the Nonprofit Association of Oregon was a great opportunity to have an open conversation about mergers. As part of our search services, we support organizations with mergers simply because a leadership transition (staff or board) are often prime opportunities to look at an organization and make big decisions.

In recent months, we have been working with several organizations on preparing themselves for the conversation about mergers—just the conversation. The priorities:

• Start by understanding their priorities.

• What do they do that is unique/special/meaningful? 

• Why are they considering a merger? 

• What would it look like for them and their clients to be in a merged organization. The benefits as well as challenges. 

• How is the value of the organization communicated internally and externally? 

• Is that value proposition consistent between staff, board and community?

Only after a solid internal assessment can a conversation begin about the options. There are always options, but you have to know what matters to you to evaluate them fairly and openly. There is always a decision to not merge. There is always a decision to close. But what comes in the middle is open for research and consideration. Questions to consider:

• Who are viable partners? 

• What are we “saving” in a merger? 

• Are we the lead organization or the absorbed organization? 

• What does financial sustainability look like (even preliminary discussions help)?

There are checkpoints all along the way. There is no harm in beginning a conversation with your board or leadership team to understand where you are in the ecosystem, what matters to you from a values/purpose position and how a change could benefit clients and resources.

Need support with a merger or closure? Give us a call if you’d like to have a conversation.