Posts Tagged ‘Nonprofit Collaboration’

For Nonprofits, Collaboration, Merger are the New Realities

Thursday, January 14th, 2010

shaking-handsThe recession has been extremely difficult on charitable organizations, and many have not survived. To avoid shutting their doors, many are opening their minds to new possibilities—also known as “survival tactics.” Reports show that increasingly, nonprofits around the country are turning to collaborations, partnerships, and mergers.

One California program that helps special needs individuals through horseback riding thrived for fifteen years—until the economy tanked. Instead of shutting down, they found a sister organization the works with children and adults with disabilities, and after many, many hours of talking and planning, they merged into one new streamlined organization.

In Washington State, a youth-services organization faced extreme cuts in state funding that threatened to close its doors forever. The outlook was dire for the young people who counted on the services it provided, including a homeless youth shelter, foster program, and family counseling services. Luckily, a financially stable family-service organization stepped in. By taking over half of the youth service organization’s programs, the cash-strapped organization bought some time to reorganize and survive—without loss of services.

Whether it’s to improve finances, gain a wider range of services or additional expertise, mergers can be an ideal solution for nonprofit organizations. But mergers take a great deal of focus, planning, and dedication on the part of board members, staff, management, and volunteers.

Nonprofits collaborate in other money-saving ways these days—like sharing space. As budgets are slashed, personnel is often the first area targeting when cutting expenses. Fewer staff means less space needed. And that extra space is being filled by sister organizations.

Sharing rent, utility bills and administrative staff is a great way for nonprofits to reduce expenses. Plus, there’s the spark of new energy and ideas, a broadening of service offerings, and one-stop shopping for clients needing more services that make collaboration a great way to survive the down economy for nonprofits.