Charity Bosses Need to Get the Message: Mergers Work

Charity Bosses Need to Get the Message: Mergers Work

mergersDespite evidence of the potential benefits of mergers in the not-for-profit sector, charities still find mergers difficult.

Our third annual review of not-for-profit mergers shows that despite continuing concern about duplication in the sector, just 0.07% of registered charities opted to merge over the past 12 months.

In 2015/16, more than 1,060 charities registered with the Charity Commission, bringing the total to 163,000. But only 116 organisations, with a cumulative income of £799.4m, took part in just 54 merger deals, according to our merger index [pdf], published on 24 November.

Do mergers work? The data shows that the turnover of those charities that led a mergers increased by between 6% and 150% over the two-year period – much better performance than the small organic growth in income for the voluntary sector as a whole over the same time. In seven out of nine cases we found the turnover of the newly merged organisation had also delivered additional growth in excess of the sum of the individual charities pre-merger.

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From: Guardian Voluntary Sector Network

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