Crisis or opportunity? The case for mergers

11 Mar 2010 Voices

It is interesting to see that Crisis are yet again in merger discussions. The number of mergers we are seeing in the sector can only be a good thing even if they are driven by necessity.

It is interesting to see that Crisis are yet again in merger discussions.

Hopefully the potential merger with Off the Streets and Into Work (OSW) will have a more positive outcome than the aborted conversations with Shelter a few years ago.

Personally I think that the number of mergers we are seeing in the sector can only be a good thing even if, as in this example, they are driven by necessity as core funds become more and more difficult to raise.

We know that the public think that there are too many charities and that organisations seeking to achieve similar goals should work together – for those of who remain unconvinced about this have a look at this special report from EAPG.

Those of us who are brave enough to admit it also know that coalition working is fraught with difficulties and tensions, making mergers, in the long-term, a better option.

Sadly it seems that those with decision making power about these issues are often unwilling to compromise over details that are meaningless to donors and beneficiaries alike to make mergers work – details like who gets key jobs in the new structure or specifics of particular brand identities or names.

Perhaps these difficult times are actually an opportunity that those of us who are responsible for raising the unrestricted income of our charities should seize? Before lack of income forces our hand, perhaps now is the time when we should think proactively about potential mergers and really challenge our Boards to think again about whether the reasons for maintaining our own identities are really in the best interests of our donors or beneficiaries?