Success Factors in Nonprofit Mergers - Minnesota Council of ...

More documents

Recommendations

Info

Success Factors in nonprofit mergers Factors proven to make nonprofits mergers more likely to succeed 3. Survival versus strategy motivations in merger Frequency Percent Strategy-only 3 7% Strategy-leaning 6 15% Balanced 20 49% Survival-leaning 8 20% Survival-only 4 10% Almost one-half (49%) of the mergers studied are considered to have balanced motivations for merger. This means that the number of survival motivations is equal to or within one of the number of strategy motivations reported for at least one of the premerger organizations in Figure 3. For example, if a merger reports that three of the strategy motivations and two of the survival motivations were primary reasons for merger in at least one of the pre-merger organizations, this merger would be considered to have balanced motivations for merger. Ten percent of the mergers are considered survival-only. This means that they identified all three survival motivations in at least one of the pre-merger organizations and none of the strategy motivations. Conversely, seven percent of the mergers are considered strategy-only. Finally, one-fifth (20%) of the mergers are considered survival-leaning and 15 percent were strategy-leaning. These represent mergers that were motivated more by either survival or strategy, but still had some elements of both. Expanding types or reach of services A key strategic motivation for pursuing merger is to expand the types of services the organization offers or to expand the market reach (geographic or segment) of the services the organization offers. In this study, more than half (56%) of the mergers were seen as an opportunity to expand the reach of services to new markets, client populations, or new geographies. A much smaller percentage (29%) reported that they wished to expand the type of services offered. Improving programs and providing better service At the core of strategic motivations for pursing merger is the potential to improve programs and services. Respondents from two-thirds (66%) of the mergers studied described elements related to better serving clients, customers, or members or improving the services the organization provides. The primary ways in which organizations were seeking to better serve clients was to reduce confusion because of duplicate services or providers and, in general, providing better access to services. Success Factors In Nonprofit Mergers 27 MAP for Nonprofits & Wilder Research 2012
Success Factors in nonprofit mergers Factors proven to make nonprofits mergers more likely to succeed Respondents also described being motivated to pursue a merger because the strategic programmatic fit of programs and services in the pre-merger organizations would allow the merged organization to improve services by providing a missing or underrepresented program element. The opportunity to serve a greater population [of] at risk kids. –Executive leadership I think that we felt it would allow us to continue with our mission, but to expand capacity to serve people. –Program administrator or management The single biggest reason was the good strategic fit of their programs, that either fit well with our programming or was programming which we wanted to pursue or to grow in as an organization. –Executive leadership Acquiring characteristics of another organization A primary motivation for merger that appears to straddle strategic and survival motives is an interest in acquiring one or more desirable characteristics of another organization. This is most commonly associated with a desire to acquire fundraising or additional donor base, but it may also include an interest in acquiring physical space or staff expertise. In this study, 17 of the mergers were motivated in part by a desire to expand donor base. Eight organizations hoped to achieve greater staff expertise through merger, and five of the organizations intended to expand physical space through the merger. The ability to acquire the programming and the skilled and experienced staff associated with that programming. –Executive leadership We were not doing any external fundraising and did not leverage nonprofit advantages we had at our disposal. I knew we needed to be able to do that. I felt that if we could leverage our ability to run ourselves like a business as something we could provide for another organization, we could gain from their strengths in fundraising and connection into the communities, as well as their abilities in program development. –Executive leadership Financial instability The most common survival-motivated reason for merger is to gain greater fiscal stability for one or both organizations. In this study, 80 percent of executive directors of merged organizations report that the merger was either mainly (40%) or partly (40%) motivated Success Factors In Nonprofit Mergers 28 MAP for Nonprofits & Wilder Research 2012
Page 1 and 2: in nonprofit mergers Factors proven
Page 3 and 4: Success Factors in nonprofit merger
Page 31: Success Factors in nonprofit merger
Page 83 and 84:
Success Factors in nonprofit merger
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Merger study master interview Bibli
Page 99 and 100:
4a. Are you currently involved with
Page 101 and 102:
LOGIC FOR DETERMINING WHAT SECTIONS
Page 103 and 104:
13. Was one of the pre-merger organ
Page 105 and 106:
[IF MORE THAN ONE CHAMPTION > ASK A
Page 107 and 108:
23. I am going to read a list of co
Page 109 and 110:
31a. Did they continue to fund the
Page 111 and 112:
2. Merging process My next question
Page 113 and 114:
50Z. What else should we know about
Page 115 and 116:
57. Overall, how would you rate the
Page 117 and 118:
Page 119 and 120:
65. The next questions are about ex
Page 121 and 122:
Page 123 and 124:
74A: What new operating policies we
Page 125 and 126:
4. Current organization The next qu
Page 127 and 128:
89. Those are all of the questions
show all

Success Factors in Nonprofit Mergers - Minnesota Council of ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?