Introduction to Nonprofit Strategic Restructuring:
Mergers, Partnerships & Alliances
Presenter:
Jean Butzen
Mission + Strategy Consulting
Blogging at: www.MissionPlusStrategy.com
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1. The environment is driving
nonprofits to consider
mergers and partnerships.
The three main points
of the workshop: 2. There is a wide variety of
creative, diverse partnership
models.
3. Mergers, alliances, and
partnerships can make
nonprofits stronger and
increase impact.
3000
2500
2000
1500
Housing Units
1000
500
0
1987 1992 1997 2005 2012
What are the environmental drivers
for mergers and partnerships today?
How many can you name?
KEY DRIVERS FOR RESTRUCTURING:
1. Economic forces like the recession
2. Pressure to raise unrestricted funding for back office
expenses
3. Government moving to more managed-care contracting
4. The shift to measuring results in nonprofit organizations
5. More competition from nonprofits and for-profits
6. The impending leadership gap in management
7. The political push for smaller government
8. Complexity of social issues that clients bring to the table.
What are the creative ways
nonprofits are partnering, in
addition to mergers?
How are nonprofits benefiting from
these structures?
JOINT VENTURE PARTNERSHIP
GOVERNED BY A 501(c)(3) BOARD OF DIRECTORS
Board of
Directors
plus Board
Chairs
Nora
Central Square
Theatre
(501 (c)3
nonprofit
corporation)
URT
MANAGEMENT SERVICE ORGANIZATIONS
501(c)(3) Nonprofit Corporation
SHARED SERVICE ALLIANCE
PARENT CORPORATION
NONPROFIT MERGER
The Role of Foundations in
Nonprofit Mergers & Partnerships
Jim Lewis, Chicago Community Trust
STEPS TO ORGANIZING A
PARTNERSHIP
•
•
•
•
•
•
•
•
1. SWOT analysis
2. Identify prospects
3. Reach out
4. Prepare a letter of intent
5. Write a memorandum of understanding
6. Create legal documents
7. Implement your partnership
8. Evaluate your partnership
Questions and Answers:
If you were to try and share this
presentation with someone tomorrow,
what parts are you not confident in?
THE NEW NONPROFIT
ADVOCACY
ALLIANCE
Shared Service
Alliance
For Joint Purchasing
NPO #1
ABC Nonprofit
FOUNDATION
NPO #2
PARENT CORPORATION
(providing back office support)
FOR-PROFIT
SUBSIDIARY,
Joint Venture
Partnership w/XYZ
Nonprofit
NPO #3
A product of
two or three
strategic mergers over
a period of time
ǀ 15
CLOSING COMMENT
Make this information useful – use it.
WHERE TO GO FOR MORE
INFORMATION:
• To read about more actual collaboration cases,
check out the Foundation Center Collaboration
Database:
http://collaboration.foundationcenter.org/search/
searchGenerator.php
• See the Mission + Strategy Bibliography and my
web page: www.MissionPlusStrategy.com