Mission + Strategy = Social Value

Nonprofit Mergers: New Donor Quality Metric? No. Carolina Story May Indicate So

A very interesting story popped up in my Google search engine dated Sept. 28, 2009 from the Charlotte Observer. A county commission of very prestigious government and foundation institutions including the United Way of Central Carolinas and the Foundation for the Carolinas, have formed to identify strategies for addressing the funding losses for the  Charlotte-Mecklenberg community. There simply isn't enough money to support the same number of nonprofits today as there was in the past; one estimate is that funding is down $171M for nonprofits. The most popular suggestion from Charlotte residents and commission members is for nonprofits to merge; "There are absolutely too many nonprofits in Charlotte," says Jennifer Roberts who chairs the commission. With area unemployment at 12%, local experts expect donations to continue to decline. "Given where we are in our community, and where we are in our society, it does make sense for the nonprofit sector to look at ways it can restructure itself, County Manager Harry Jones says. "As a donor, I'm going to want to know that an agency I'm giving money to is not duplicating." Is this the beginning of donors looking for evidence of collaboration strategy in a nonprofit's portfolio as a quality metric? Will the evidence of multiple nonprofits doing the same kinds of work in the same community turn off donors and make them feel like it's a duplication of effort? Time will tell.

News Round-Up on Nonprofit Strategic Re-Structuring from Summer 2009

Here are the news and other stories about nonprofit collaborations, mostly mergers, that I pulled off the Internet from all over the country.

Merging Administrative Functions, posted on the site: Butts in the Seats, Musings on Practical Solutions for Arts Organizations, July 21, 2009. The posting links four separate articles written by the Nonprofit Law Blog related to back office collaborations. You may have seen these postings elsewhere, they are very good.

Goodwill Merger Art for our sake at the Kimmel Center tonight, Philadelphia City Paper, July 23, 2009. Article about a joint fundraising event to celebrate a new merger between Centro Nuevo Creacion and Lutheran Settlement House.

Charlotte Shelters to Merge, WFAE 90.7FM, story aired July 24, 2009. Radio story text regarding two shelters, Uptown Men's Shelter and Emergency Winter Shelter which are merging after operating separately for 20 years. A move even the shelter clients say makes perfect sense.

OPINION: Putting Clients over turf is bold first step, The Charlotte Observer - McClatchey Tribune Information Services, July 26, 2009. An article about the merger of two shelters in Charlotte, NC.

To Respond to Downturn, Two Museums Join Forces, New York Times, July 24, 2009. The story describes the impact of the economy on arts organizations and strategies they are devising to deliver programming including 6 New York museums which have formed an alliance to allow any of their members to have visiting privileges for all of their establishments.

Pending merger could trigger another blood bank war, Orlando Sentinel, July 29, 2009. An article discussing the impact of a potential merger between two blood banks and its potential to create a "blood war," in the market.

Merger with Arts Group Will Preserve Ticket Subsidy Program, New York Times, July 31, 2009. Article about the merger of two arts organizations in NYC: Arts Connection and High 5 Tickets to the Arts.

Group faces big change, goerie.com, Erie Times News, Aug. 2, 2009. Two refugee relief organizations, The International Institute of Erie is merging with its national affiliate the U.S. Committee for Refugees and Immigrants, based in Arlington, Va.

Youth Villages, Georgia-based Inner Harbour to merge, Memphis Business Journal, Aug. 3, 2009. Two Georgia-based nonprofits providing residential and social services announced their decision to merge by the end of 2009.

Dayton United Way rejects Cincy merger, Business Courier, Aug. 4, 2009. The United Way of Greater Dayton rejected the opportunity to merge with the United Way of Greater Cincinnati and the United Fund of Dearborn and Ohio counties in southeastern Indiana.

Nonprofits and Corporate Counsel partner in Merger Success, The Metropolitan Corporate Counsel, Aug. 5, 2009. An article about free legal services from a nonprofit called Pro Bono Partnership, based in the states of Connecticut, New Jersey, and New York, which assisted with nonprofit merger transactional services.

County Habitat moves to Baltimore, The Capital Hometown Annapolis.com. Two Maryland Habitat chapters, Arundel Habitat for Humanity and Chesapeake Habitat for Humanity merged on July 1st.

New North American recycling group forming, PlasticsNews.com, Aug. 4, 2009. An article describing the creation of a new national recycling coalition, RONA, created in reaction to the merger of the National Recycling Coalition and Keep America Beautiful.

New Recycling Org. Launches, Kab/NRC Merger Pending, Earth911.com, Aug. 6, 2009. An article on the launch of a new, national recycling coalition in reaction to the decision by Keep America Beautiful and the National Recycling Coalition to merge.

Lending Merger is Sensible, My SA Business, Aug. 15, 2009. An article discussing the merger of three small, community lending institutions in San Antonio, Texas.

Merger aims for 'friendlier' housing plan, The Salem News, Aug. 15, 2009. Two local housing organizations have decided to merge to maximize their development capacity in Salem, MA.

Finances prodding nonprofit mergers, Mankato Free Press.com, Aug. 18, 2009. An article about three nonprofit women leaders involved in promoting mergers in the sector.

Boys and Girls Town part of merger, News-Leader.com, Springfield, Missouri, Aug. 28, 2009. The Springfield Boys and Girls Town of Missouri has announced a merger with another youth agency.