Are Non-Profits Ripe For Mergers Or Disbanding?

The lingering poor economy is wreaking havoc on the fundraising efforts of even the strongest non-profit organizations in communities all across the country. Numerous articles have addressed this issue. The aim of this text is to deal with the potential for mergers or disbanding and to advocate a proactive approach inside the community to require full advantage of all opportunities.

Our organization, The Center for Ethics, Governance, and Accountability (CEGA) frequently speaks in support of proactive moral and governance standards as mechanisms to promote effectiveness and highlight positive variations among organizations in the non-profit sector. The issue of merger or disbanding properly falls among our mission under the subject of accountability.

Do we have too many non-profits operating in our community? Well, that depends on who you ask! Anecdotally, we have a tendency to suspect those inside the non-profit sector would argue their organization ought to continue its existence; we suspect those outside of the non-profit sector would argue there's duplication of effort, lack of coordination, and too few charitable contributions to sustain all of the present organizations. We tend to additionally suspect public opinion isn't linked to want or performance, per se, however rather toward the perceptions of an excessive amount of expense, not enough resources, and not enough results.

Conjointly, anecdotally, we are of the opinion that non-profits are usually not good communicators of the services they supply to the community. If true, poor communications fosters a lack of understanding and appreciation inside the community. The vicious circle continues: donors do not support what they do not understand and appreciate.

So, we have a tendency to believe the time is good for communities to require a exhausting study disbanding bound non-profits and merging others. Every chance to improve performance should be explored.

Whereas this is often hardly a distinctive plan, actually developing a process to fairly assess performance and would like is politically tough and socially taboo. But, beginning with a realistic understanding of the difficulty is the simplest approach and should yield the foremost positive outcome. No cookie-cutter approach can work for all communities.

We tend to suggest that an vital axiom be kept in mind: who says merging non-profits - or perhaps disbanding several - could be a dangerous thing to try to to?! Isn't it entirely doable that selected reorganizations should really higher serve the community and strengthen currently weakened organizations? We have a tendency to definitely advocate a positive approach to any such community review.

Keep with the counsel we have a tendency to provide through CEGA, the most effective-case state of affairs would be for open-minded, forward-thinking boards of individual non-profits to actually conduct an inside dialogue and to proactively offer their organization for merger in a very strategic manner. This approach demonstrates leadership and takes as a lot of emotion and worry out of the process as possible. It is difficult to argue with an organization who has reviewed its mission and purpose, analyzed its money strength and its program outcomes, and determined it would better serve the community by merging, or combining forces, with another non-profit.

Generally speaking, it's impossible to argue that economies of scale cannot be found through mergers which efficiencies and improved service delivery would not be realized. We have a tendency to continue to believe that there is not now - nor might there ever be - any less need for community services, so continuity of employment by non-profits entering merger discussions ought to not be a negative issue.

Is that the time right for your non-profit to contemplate a significant change? Have you thought about it? Have you ever mentioned it along with your fellow board members or your fellow workers members? If not, the opportunity is true for considering your options now. From the standpoint of accountability, it is your responsibility as a board member or an government director to create the opportunity for this type of dialogue in your organization.

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