Sep 2, 2010 0
Mergers and DISCERN-ment

Scott Rodin
As nonprofit organizations face growing challenges in raising resources, securing board members and communicating the uniqueness of their mission, there is a growing interest in the opportunities available through collaboration and cooperation with one another. More than perhaps any time in the history of the not-for-profit sector in our country, there is an openness to explore the possibility of mergers, acquisitions and strategic alliances.
The Not-For-Profit Practice of OneAccord specializes in helping organizations investigate these options and, when appropriate, to walk through step-by-step the complex process of completing a merger, acquisition or strategic alliance. Here is a brief primer on the process.
Step one, choose the appropriate structure and do so for the right reasons. Of the three options listed above, every organization will need to decide which will best serve the furthering of their mission. An acquisition allows stronger organizations to bring smaller organizations in under their 501(c) 3 umbrella. A merger produces a new organization that emerges out of the merging of two existing organizations, and a strategic alliance allows two nonprofits to work together in substantive ways without either having to set aside their identity or legal structure. All three have their unique purposes and your organization will need to choose which one best serves the intention and goals of a collaborative effort.
Step two, organizational preparation. In this step we help nonprofits walk through five activities that will best prepare them for the significant work that lies ahead. These are: prayerful discernment, strategic planning, partner identification, selection of the process to be followed, and the initial approach to the potential partner. When these steps are followed carefully an organization is ready to begin the serious work of completing a collaborative effort with the selected partner.
Step three, the OneAccord DISCERN Process. Through our experience of working with nonprofits in these collaborative efforts, we have designed a seven step process. They are: Discovery, Issue Identification, Stakeholder Involvement, Communication, Evaluation, Resolve and Negotiation. Underneath each one of these seven steps is a carefully designed process that will help your organization move carefully and prayerfully as it discerns and evaluates the risks and benefits of a collaborative effort at every point.
The end result is a new relationship that has been carefully thought through, well planned, skillfully executed and prayerfully implemented. Taking your organization through a merger, acquisition or strategic alliance is one of the most demanding efforts ever to be undertaken by an organization. However, the end result can position you to fulfill your mission in greater ways than you may have ever imagined. If you’re interested in exploring a merger, acquisition or strategic alliance, OneAccord stands ready to guide you through from initial interest to final result.
- R. Scott Rodin, Managing Principal
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