Nonprofit Mergers Are Not Always The Solution

Wednesday, January 26, 2011

Pam C Reidenback Pam Clark Reidenbach (pictured) from the Northern Illinois Center for Nonprofit Excellence at Rockford College mentions Donors Forum's Economic Outlook 2010 study in a column she wrote for the Rockford Register Star questioning the value of nonprofit mergers.  An excerpt is here:

        Community leaders are putting pressure on nonprofits to merge as a potential cost-saving measure, but mergers may not be the solution for nonprofits facing financial problems.

A Donors Forum survey shows that 67 percent of Illinois nonprofits experienced increased demand for services in the past 12 months, yet 41 percent had decreased ability to meet that demand. Why would we talk about reducing the number of nonprofits when we cannot meet the overwhelming need?

Mergers can be a strategic option, but they are not a quick financial fix…The value in any merger should be the ability to better meet mission and improve service delivery.

Find the full column here.

~ Claudette Baker, Vice President, Library & Nonprofit Services