Merging Your Charity
It may be that you would like to bring in more skills or additional funds to your charity but are not sure that standing alone will present the charity with the opportunity to grow, attract new funders or just retain stability.
It is possible for two or more charities to merge into one organisation by one of the charities taking over another’s activities and assets or by forming a completely new charity to take over the same for all charities involved.
If merging is something you, as Trustees, are considering, then be sure to check that the governing documents allow a merger and that all charities involved have similar charitable aims and core values. It may be that you will need to obtain permission from the Charity Commission.
Things to consider
The merger should be in the best interests of the charities’ beneficiaries, the Trustees should be united in believing that a merger is the best way forward and certain questions, amongst others, need to be answered:
- Have we approached our beneficiaries for their view?
- What will be the risks and benefits for our charity of a formal merger?
- Are there any other forms of collaborative working we could explore that might achieve the same benefits?
- Have we considered the full cost of merging?
- Are we carrying out a due diligence exercise?
Charities need to be clear about all factors influencing the decision, can the charity reach more services, will the merger reduce overall costs, can the charity overcome financial uncertainty, will it achieve a better public profile.
There is much to consider but it may be worth exploring and the Charity Commission provides good guidance on this subject.