Should charities merge together? Our panel of experts give their opinions.
Valerie Morton FInstF (Dip) @ValerieMorton55
Yes. Many small charities I work with struggle to find both good trustees and staff with the expertise to fundraise effectively. They are also each developing their own processes and systems resulting in a severe case of 'reinventing the wheel'. Merging will make it more financially viable to invest in income generation and ensure the maximum return on investment.
The flip side is of course a fear that a larger organisation will bring with it increased overheads, as staff are doing more management and less action. But this is a flawed argument, because good management makes for an efficient organisation.
The challenge for the sector is to create innovate models where charities can retain their identity while benefitting from behind-the-scenes economies of scale.
Richard Litchfield, chief executive, Eastside Primetimers
The non-profit sector is faced with a challenging financial environment, where charities that are more diverse or professionalised have the advantage, especially those participating in large-scale competitive service contracts.
This is exemplified by the recent tragic collapse of the award-winning children's charity BeatBulling which, despite a strong profile, was reliant on unstable grant funding and lacked sufficient organisational infrastructure.
Surely this could have been avoided through a well-timed merger with a more diverse charity, such as those that the Disability Living Foundation pursued with Shaw Trust, and KCA with Addaction? There is a strong case for more such mergers in an often fragmented sector.
Paul Breckell, chief executive, Action on Hearing Loss
There is no one-size-fits-all answer: charities must consider their beneficiaries, shared aims and income streams as well as a merger's potential impact on supporters and staff.
For Action on Hearing Loss, an official approach by long-standing partner Deafness Research UK (DRUK) at the end of 2012 resulted in a merger a few months later. New roles were made available at Action on Hearing Loss for DRUK staff; trustees were co-opted onto our board or invited to take up Vice President roles; and DRUK's royal patron, HRH The Duke of York, became patron of the merged charity, assuming responsibility from HRH The Duke of Edinburgh.
Yet, through all of these considerations, above all our merger is enabling us to fulfil one of our strategic priorities - increasing our annual investment in a wholly underfunded area of research, to help achieve a cure for hearing loss and tinnitus within our lifetime.
Charlie Medcalf, head of project management, Pilotlight
At Pilotlight, we've worked with several charities going through or considering a merger. To really know if a merger is right for your charity there are some important things to consider. Firstly, you'll need to take a good look at the culture of your organisation and see if it is a good match with the other charity. Thinking through in advance how you'd work together can throw up both challenges and advantages.
Second, ensure the lines of communication between both organisations are strong. While the respective chief executives will be involved closely in any merger decision, bringing together the chairs of both charities can also be crucial. Ensure all staff are well informed and are able to ask questions.
Finally, ask yourselves how your services will change, and what the effect might be on the people you help. Will the merger help deliver better outcomes?
