Mergers in the voluntary and community sector
Mergers in the voluntary and community sector
There is a growing interest in merger among voluntary and community organisations, and in addition to advice and guidance, the subject has generated heated debate and opinion.
This page attempts to signpost organisations to information, news and examples of mergers in the voluntary and community sector.
News and comment
Merger - By Andrew Studd, Third Sector, 27 October 2009
Andrew Studd, a partner in the charity team at Russell Cooke LLP, looks at what must be considered when looking at a merger
"When considering a merger, the organisations involved should carry out a certain amount of due diligence before proceeding. Due diligence serves to reveal not only the legal and financial position of the organisations involved - liabilities in respect of contracts, property leases, employees and pension schemes, in particular - but also the cultural fit between the organisations".
Read the full article
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Charity partnerships: Finding new ways to work together
By Mathew Little, Third Sector, 2 November 2009
Charities are experimenting with collaborations that stop short of formal merger. Mathew Little looks at how two groups of charities are trying to find their own ideal structure
When she was asked to describe the nature of the governance agreement signed in the spring between her charity and Action for Blind People, Lesley-Anne Alexander, chief executive of the RNIB, said it was "somewhere between collaboration and merger".
Although merger is still the preferred option for two charities that conclude that joining forces is best for their beneficiaries, some organisations are seeking their own answer.
Read the full article.
NCVO guidance
Merger - a model of collaborative working
Merger lists some of the reasons that organisations merge and the different forms that merger can take. Its good practice guidance covers the decision to merge, the merger process and how organisations can lay the groundwork for the merged organisation.
- Read Merger
Should you collaborate? Key questions
Should you collaborate? Key questions is a checklist to help organisations decide whether to embark on formal collaborative working or merger. It identifies the key issues which organisations need to consider, giving an idea where problems and complications might lie and enabling them to make informed decisions.
Due Diligence Demystified - what it is and how you manage it
This publication gives clear and concise information on due diligence and how to carry it out in the most efficient and cost-effective way. It has been written for small to medium sized voluntary and community organisations to help them understand the due diligence process and what it involves.
It provides a comprehensive checklist of the areas that are typically covered in a due diligence exercise; the documentation required and the main sources of information; and the key questions that need to be asked.
- Further information about Due Diligence Demystified
- Order Due Diligence Demystified
Other sources of support
Charity Commission guidance
- Collaborative Working and Mergers: An introduction (CC34) introduces the legal and regulatory aspects of collaborative working, merger and due diligence. 2006
- Checklist for mergers (PDF 74kb) 2009
- Checklist for due diligence (PDF 78kb) 2009
- Read the Charity Commission's Policy Statement on Mergers, Collaborative Working and Due Diligence 2007
- Information about Registering a merger with the Charity Commission 2007
Other guidance
- Mergers: A guide to literature on mergers for voluntary and community sector organisations is a literature review of available relevant material, commissioned by the London Housing Foundation. 2006
- Mergers made simple (PDF 67kb) guidance from Sayer Vincent for finance professionals. 2008
- Special report - Charity mergers (PDF 113kb) a report written for European Association for Philanthropy and Giving, by Stone King Sewell LLP solicitors. 2008
- The Charity Law Unit at Liverpool University have published two reports on merger:
- Mergers: A Legal Good Practice Guide (PDF 52kb) 2001
- Legal Issues in Charity Mergers (PDF 208kb) 2001 - The Baring Foundation produced Merging Interests (PDF 370kb) 2000
- Mix, Match, Merge? - issues and options for charities considering mergers and other partnerships, from CASS Business School (PDF 4,364kb) 2000
- ACEVO sell Managing Mergers, a practical guide to the management of mergers, based on case studies of CEOs who have led their organisations through the process. 2003
Research
- The Charity Commission's regulatory study Collaborative Working and Mergers Regulatory Study (RS4) gives the results of a survey and explains the relevant legal and regulatory issues in depth, with illustrative case studies. 2003
- Key Findings on Voluntary Sector Mergers (PDF 152kb) Institute for Voluntary Action Research. 2003
- Mergers and Collaborations - Charities survey (PDF 501kb) by Nabarro Nathanson and PricewaterhouseCoopers, in association with Charity Finance. 2004
Case studies
- Read a selection of NCVO's merger case studies.
- Cumbria CVS - Anatomy of a merger is a report written for NAVCA about the merger that formed the Cumbria Council for Voluntary Service. 2007
- Volunteering England - The Charity Commission has undertaken an evaluation of the merger that created Volunteering England (Word 167kb) 2007
- Bowling Together: Anatomy of a Successful Association Merger (PDF 96kb) - learning from the USA. 2008
