By Heather Gowdy, Diane Wong, and Melissa Mendes Campos
Published by the California HealthCare Foundation, this issue brief explores various types of partnerships now being used by California's Community Health Centers and regional consortia, including administrative consolidation and merger. It also examines what opportunities strategic restructuring might offer clinics seeking to strengthen their positions now and remain viable in the years to come. Download a PDF of the companion presentation. New companion resource: download the on-demand webinar (.wmv file) from February 4, 2010.
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Strategic Restructuring for Nonprofit Organizations: Mergers, Integrations, and Alliances
In 1999, La Piana Associates, in collaboration with the Chapin Hall Center for Children (a policy research institution at the University of Chicago ), conducted the largest ever national study on strategic restructuring in the nonprofit sector. The study was funded by the Nonprofit Sector Research Fund of the Aspen Institute and the Lilly Endowment.
Phase II of the national study was completed in 2002. It involves in-depth case studies of six strategic restructuring partnerships, as well as a survey of a random sample of nonprofits in two different cities to look at the prevalence of strategic restructuring in those areas. In addition, the research team conducted interviews with 20 national leaders in the nonprofit and philanthropic sector, asking them to share their reflections on the implications of the preliminary results for the future of the sector.
The findings of this research are included in a book — Strategic Restructuring for Nonprofit Organizations: Mergers, Integrations, and Alliances — by Amelia Kohm and David La Piana, published by Praeger Publishers in November 2003. The book provides nonprofit managers, board members, consultants, and foundation executives with research-based information to use in making tough decisions about whether and how to pursue a range of organizational partnerships — from jointly managed programs and consolidated administrative functions, to full-scale mergers.
Strategic Restructuring for Nonprofit Organizations is available for purchase at Amazon.com. http://www.amazon.com
Download a PDF copy of the Phase 1 report from the Chapin Hall Center for Children website http://www.chapinhall.org
The Nonprofit Mergers Workbook, Part I: The Leader's Guide to Considering, Negotiating, and Executing a Merger
http://www.fieldstonealliance.org/
Nonprofit mergers are on the rise as executive directors and board members discover the advantages: comprehensive service delivery, better finances, more powerful fundraising, and increased market share, to name but a few. Bottom line: mergers make more mission possible. But nonprofit leaders often dread the thought.
David La Piana’s first book — The Nonprofit Mergers Workbook Part I: The Leader's Guide to Considering, Negotiating, and Executing a Merger — shows that merger is not a last ditch survival move but an important strategic tool for organizations focused on doing their best for their community. From assessing reasons and readiness, to finding a partner, to negotiating the best path, to budgeting and implementation, The Workbook Part I guides you through the maze of options with a steady hand. Based on experience with more than sixty mergers, this handbook is the perfect starting point for any nonprofit exploring a possible merger—and a basic resource for all nonprofit managers. You’ll find:
- How to decide what kind of structure — from collaboration to merger — meets your goals
- How to know your own motivation and keep your mission forefront
- What kind of merger best fits your goals, structure, and financial situation
- How to seek merger partners and objectively assess the pros and cons of each
- How to manage the board’s essential role in merger considerations
- How to exercise due diligence and write the merger agreement
- How to deal with the rumor mill
- What you can do yourself, when to call in attorneys and consultants, and how to select them
- Typical roadblocks and how to beat them
- How to move past old history and build new traditions as you integrate staff, management, boards, systems, and corporate cultures
- How to budget for and raise funds to implement the merger
- And much more!
Full merger case studies, decision trees, twenty-two worksheets, checklists, tips, milestones, an extensive resource section and many samples — including the minutes of a completed merger negotiation — give you concrete assistance with your own merger plans and implementation. A special chapter written for nonprofit organizational consultants explains their roles and responsibilities in assisting clients interested in merger.
The James Irvine Foundation — sensing an increased interest among nonprofit sector leaders in partnership opportunities — commissioned a study by David La Piana of the future role of strategic restructuring. That study led to Beyond Collaboration: Strategic Restructuring for Nonprofit Organizations, published by the National Center for Nonprofit Boards in 1997. The study offers an analysis of restructuring efforts among nonprofits and describes several strategies that funders might develop to support activity in this arena. A follow-up Revised Second Edition was released in March 2000, with an expanded reference section demonstrating the considerable advancements made in the field of strategic restructuring over that three-year period.
