The dismal economy may be dampening M&A in some circles, but it's behind an uptick in mergers among nonprofits. That's according to the law firm , which has
seen consolidation taking place among nonprofits looking to combine resources in a tough fundraising environment and to offer more benefits to members.
Here's what Jerald A. Jacobs, who runs Pillsbury's public practice had to say: "Nonprofit associations, which are traditionally less acquisitive in
nature than corporations and inclined to exist as individual
groups, feel they must
consolidate in order to become more strategically valuable to
dues-payers and donors."
A few of the recent nonprofit tie-ups include: The American Bankers
Association and America's Community Bankers, the National Alliance for
Autism Research and Autism Speaks, and the volunteer organizations
Hands on Network and the Points of Light
Foundation.
Nonprofit merges are tough to pull off. While financial and strategic acquirers can point to revenue generation and tangible synergies to justify a merger, says Jacobs, nonprofits must often sell the deal to stakeholders on little more than a vision for the combined organization. And there can be complex regulatory issues that go beyond those faced by for-profit entities.
- Suzanne Stevens
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