Introduction to Nonprofit Strategic Restructuring: Mergers, Partnerships & Alliances Presenter: Jean Butzen Mission + Strategy Consulting Blogging at:

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Presentation transcript:

Introduction to Nonprofit Strategic Restructuring: Mergers, Partnerships & Alliances Presenter: Jean Butzen Mission + Strategy Consulting Blogging at: “Like” Mission Plus Strategy on Facebook Follow us on Twitter: JeanButzen

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:

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 recession 2.Pressure to raise unrestricted funding for back office expenses 3.Government moving to more managed-care contracting 4.The shift to measuring results in nonprofit organizations 5.More competition from nonprofits and for-profits 6.The impending leadership gap in management 7.The political push for smaller government 8.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 PARTNERSHIP GOVERNED BY A 501(c)(3) BOARD OF DIRECTORS Board of Directors plus Board Chairs Nora Central Square Theatre (501 (c)3 nonprofit corporation) URT

MANAGEMENT SERVICE ORGANIZATIONS 501(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?

ǀ15 THE NEW NONPROFIT ABC Nonprofit PARENT CORPORATION (providing back office support) ABC Nonprofit PARENT CORPORATION (providing back office support) NPO #2 NPO #1 A product of two or three strategic mergers over a period of time A product of two or three strategic mergers over a period of time Shared Service Alliance For Joint Purchasing Shared Service Alliance For Joint Purchasing FOR-PROFIT SUBSIDIARY, Joint Venture Partnership w/XYZ Nonprofit FOR-PROFIT SUBSIDIARY, 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: searchGenerator.php See the Mission + Strategy Bibliography and my web page: WHERE TO GO FOR MORE INFORMATION: