On December 2, 2008, Nonprofit M&As: Tool for Tough Times? authors William Foster and Alex Cortez took part in a Chronicle of Philanthropy online chat on the topic of mergers and alliances. A description and a link to the chat follows.
As the economy sputters, many nonprofit groups are searching for new ways to cut costs without slicing services. In some cases, collaborating or even merging with another organization is one way to reconcile this challenge.
Some groups are taking steps to team up on fund-raising events, merge back-office functions, or share equipment and office space. Others are considering plans to merge with similar organizations that perform complementary functions.
But not all alliances make sense. Nor does collaborating guarantee that organizations will ultimately save money.
When are such arrangements a good idea? What ground rules should you set when setting up a collaborative effort? And what are some examples of alliances that have worked well for those involved?
Read a transcript of the online chat at the Chronicle of Philanthropy's website.