Advantages Reduced costs
Often the lack of funds is an obstacle for charities in achieving their goals. The merging of smaller charities, in order to benefit from economies of scale can help in bringing down operational costs such as resources, building and administration. Greater market share The number of activities where the two charities are doing the same thing is reduced. Where charities are researching in similar fields, bringing together skills and knowledge can enhance the pool of information on that subject, and may enable the new organisation to expand the range of services provided. Building a brand Handled correctly, one larger charity may become stronger than two. However, mishandled, the merging of two charities under one brand can also be detrimental. Professional advice is a must as is ensuring that any new partner is aligned in terms of purpose, ethos and approach.
There has been much coverage in the charity press recently about the merger of smaller charities, indeed even the heir to the throne has been seen to have an opinion. We take a look at why charities decide to merge: what advantages are there, and what are the disadvantages?
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