Introduction to Nonprofit Strategic Restructuring:Mergers, Partnerships & Alliances
Presenter:
Jean Butzen
Mission + Strategy Consulting
Blogging at: www.MissionPlusStrategy.com“Like” Mission Plus Strategy on Facebook
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1. The environment is driving nonprofits to consider mergers and partnerships.
2. There is a wide variety of creative, diverse partnership models.
3. Mergers, alliances, and partnerships can make nonprofits stronger and increase impact.
The three main points of the workshop:
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Housing Units
What are the environmental drivers for mergers and partnerships today?
How many can you name?
KEY DRIVERS FOR RESTRUCTURING:
1. Economic forces like the recession2. Pressure to raise unrestricted funding for back office
expenses3. Government moving to more managed-care contracting4. The shift to measuring results in nonprofit organizations5. More competition from nonprofits and for-profits6. The impending leadership gap in management7. The political push for smaller government8. 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 PARTNERSHIPGOVERNED BY A 501(c)(3) BOARD OF DIRECTORS
Board of Directors
plus Board Chairs
NoraCentral Square
Theatre (501 (c)3 nonprofit
corporation)
URT
MANAGEMENT SERVICE ORGANIZATIONS501(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?
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THE NEW NONPROFIT
ABC NonprofitPARENT CORPORATION
(providing back office support)
NPO #2
NPO #1
A product of two or three
strategic mergers over a period of time
Shared Service Alliance
For Joint Purchasing
FOR-PROFITSUBSIDIARY,Joint Venture
Partnership w/XYZ Nonprofit
ADVOCACY ALLIANCE
FOUNDATION
NPO #3
CLOSING COMMENT
Make this information useful – use it.
• 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
WHERE TO GO FOR MORE INFORMATION: