The Urge to Merge: How Charities Are Exploring Collaborations to Survive Tough Times

The charity sector is facing immense challenges. Costs are rising, donations are falling, and demand for services is increasing. Many charities are struggling to stay financially viable. These pressures are forcing organisations to get creative in how they operate and deliver their missions. One strategy that seems to be gaining traction is charity collaborations and mergers.

Joining forces with another charity can provide much-needed stability and resources. Cost savings can be found in combined back-office functions like HR, finance and IT. Fundraising efforts can become more efficient and effective when coordinated across organisations. And merging similar programs and infrastructure avoids duplication and wasted effort.

But the benefits have to be balanced against the risks. Charity brands are vitally important, so mergers mean making tough decisions about which names and identities to maintain. Organisational cultures may clash, staff may resist changes, and reputations may suffer if things don’t go smoothly. The merged charity has to continue speaking authentically to its different supporter bases.

Successful collaborations and mergers require extensive planning and communication. Charity leaders must engage all internal and external stakeholders from the start. Having a clear vision and strategy is vital. The expected return on investment needs to be demonstrated. And choosing the right partner is critical - mismatches here can derail the whole endeavour.

Some charity sub-sectors are seeing particular merger activity. Many small disability charities are looking to join up to gain scale and visibility. Certain health and medical research charities are consolidating to boost fundraising and marketing capabilities. And local community foundations are considering combining forces where they serve overlapping regions.

While charity collaborations and mergers hold great potential, they aren’t without pitfalls. But for many organisations facing financial uncertainty, the time is right to explore strategic partnerships. With careful planning and execution, these initiatives could strengthen charities and enable them to deliver more impact. The urge to merge may help charities not just survive, but thrive.

#charity #charitysectornews #collaboration #joinforces #executiverecruit