Friday, August 28, 2009
An article on Chicago Business this week, "The Merger Wave That Never Broke," reports that, although forecasters predicted increased mergers of nonprofit organizations in difficult economic times, a March survey found that only 5% of the 986 organizations surveyed asked had actually merged or intended to merge. Many nonprofits are daunted by logistics and cost of the merger transaction itself. Even though funders may have an interest in tightening operations, apparently there isn’t foundation money available for mergers. I believe it is still very early to know what the long-term effects of the economic mess will be on nonprofits.