Why are some nonprofit mergers wild successes while others are dismal failures? The key to success is really in choosing the 1) right time 2) right partner 3) right method. 

When is the right time?

The right time is when both organizations are healthy and looking to further leverage their strengths and are open to exploration. It is not waiting until an organization has exhausted all other strategies or is in need of a cash infusion. 

What is the right partner? 

Look for organizations with a compatible mission and complimentary strengths, weaknesses, opportunities, and threats. Make sure it is someone you trust and respect. For real growth to occur it is ideal if both organizations have strong programming, infrastructures, and balance sheets, good community relationships, and a history of sustainable growth. 

What is the right method? 

This is the place where most nonprofits really miss the true opportunities that merger can bring. Although volumes have been written on HOW to merge, the essential points are: 

1. Identify key issues at the beginning of the process. Address deal breakers first.

2. Negotiate & integrate quickly. Merger is not like wine - it does not get better with time.

3. Create a communication plan to engage employees, supporters, donors, and clients at appropriate times throughout the process. Put your plan into action as soon as the first merger meeting has ended.

4. Outline clear organizational and reporting structures at the time of merger. Even if it is temporary and will change.

5. Assess personnel & make changes asap. Re-recruit key people, help others move along.

6. Build a strong management team. Lead, lead, lead.

7. Begin integration the day after the merger vote by evaluating operations. Put an integration plan with clear, achievable goals on day one of the merger. Appoint an integration manager to lead an integration team that includes individuals from each department.

8. Drop all unnecessary initiatives until the merger integration process is complete.

9. Prioritize initiatives related to revenue and customer service during integration.

10. Outline performance expectations within the first three months.

11. Integrate the cultures of the organizations

Lisa Stokes has facilitated several dozen nonprofit mergers. For a free 45 minute consultation contact lisa@kaviconsultingservices.com