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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1987 1992 1997 2005 2012

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?

ǀ 15

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: