The NonProfit Times - February 1, 2009 - (Page 9) URGE TO MERGE Continued from page 4 Often the need arrives because of a sense to reinvent the mission. Proctor sees this as a way to view merging. He gave an example of a settlement house in New York City existing beyond the original goal.With no more settlements, they reinvented themselves. An alternative would have been to merge with the New York Urban league rather than recast the mission. “The existence of so many nonprofits helping with housing doesn’t necessarily mean reinventing,” he said.“The question should be, ‘What’s the population being served,’ and, ‘How can they be served better.’” In the example of the MS organizations, the purpose had to be re-examined, according to Proctor.Was the purpose that the national wanted to have a similar approach to King County? Will the new approach have a message or model of improving services? Will the merger help both organizations? King County’s Ringold explained how the merger developed because the missions had actually blended into one. King County emerged from a local woman who had MS in 1966 and thought of a support service to patients and families with MS. “She had a niche focus that wasn’t being addressed,” he said. “The national focused on research.” Since then, the national has altered the mission from just raising money for cures to giving direct support.“They’ve come to our direction and spent time and money for that,” he said. “For a few years, there’s been a duplication.” More people will be looking beyond their own “silos” according to Gordon Campbell, the president and CEO of the United Way of New York City (UWNYC). “Mergers will do better if the organizations have experience working with the other leaders and missions before,” he said.“You have to ask,‘What is the goal of the merger?” Are the goals to cut costs, have economy of scale, or growth and opportunity? The United Way is in the process of designing a Human Services Restructuring Fund that Campbell believes will be patterned after a private equity offering.The aim will be to allow investors to focus on the social returns of an investment and provide funding pro bono for assistance and guidance. “This would be funding not usually associated with foundations or corporations,” he said. Campbell explained that interest in a merger often is not enough in dollars to support the effort.“We want to encourage the administrative support and service parts of such an effort in this economic period,” he said. The United Way is still putting together the concept by finding individuals, corporations, and foundations for this private equity-type of fund. “We want to look at the social return on an investment through the value of any back office or merger,” he said. “The process could show the need to evolve into something different like an alliance, joint venture, or consolidation — the merger is just one tool in the tool box.” Part of the effort is a Human Services Resiliency Initiative that looks at technical assistance to expand the reach of online technology, seeking to evaluate how to think differently about the ways nonprofits operate. “We can’t go back to business as usual,” he said. “To get through this period, we have be innovative and that means continuing beyond the crisis.” What does MS’s Ringold think about most with the bittersweet prospect of losing his job while helping the organization? “We want the organization to continue at a higher level and only time will tell whether we’re going with the right reasons,” he said. “The decision seems obvious because we’re strengthening people with services.” The organization his nonprofit is join- ing has shown a capability to raise more funds with a,“sounder board,” so that the merger avoids a duplication of efforts. “This merger reminds us of the need to make the most efficient use of funds,” he said.“The merger makes sense so that instead of two agencies marketing and using the same volunteer pool, one will operate more smoothly.” NPT Tom Pope, a New York City-based journalist, writes about management issues. FEBRUARY 1, 2009 THE NONPROFIT TIMES www.nptimes.com 9 http://www.abetterwaytodogood.com http://www.abetterwaytodogood.com http://www.nptimes.com
Table of Contents Feed for the Digital Edition of The NonProfit Times - February 1, 2009 The NonProfit Times - February 1, 2009 Attorneys General Focusing On Fiduciary Responsibilities The Urge To Merge Taking Cancer To Court Contents Indefensible Calendar Special Report The Holidays Are Over Health Care Guide NPT Jobs Advertiser Index Resource Directory The NonProfit Times - February 1, 2009 The NonProfit Times - February 1, 2009 - Taking Cancer To Court (Page 1) The NonProfit Times - February 1, 2009 - Taking Cancer To Court (Page 2) The NonProfit Times - February 1, 2009 - Contents (Page 3) The NonProfit Times - February 1, 2009 - Contents (Page 4) The NonProfit Times - February 1, 2009 - Contents (Page 5) The NonProfit Times - February 1, 2009 - Contents (Page 6) The NonProfit Times - February 1, 2009 - Contents (Page 7) The NonProfit Times - February 1, 2009 - Contents (Page 8) The NonProfit Times - February 1, 2009 - Contents (Page 9) The NonProfit Times - February 1, 2009 - Calendar (Page 10) The NonProfit Times - February 1, 2009 - Special Report (Page 11) The NonProfit Times - February 1, 2009 - Special Report (Page 12) The NonProfit Times - February 1, 2009 - Special Report (Page 13) The NonProfit Times - February 1, 2009 - Special Report (Page 14) The NonProfit Times - February 1, 2009 - Special Report (Page 15) The NonProfit Times - February 1, 2009 - Special Report (Page 16) The NonProfit Times - February 1, 2009 - The Holidays Are Over (Page 17) The NonProfit Times - February 1, 2009 - The Holidays Are Over (Page 18) The NonProfit Times - February 1, 2009 - NPT Jobs (Page 19) The NonProfit Times - February 1, 2009 - Resource Directory (Page 20) The NonProfit Times - February 1, 2009 - Resource Directory (Page 21) The NonProfit Times - February 1, 2009 - Resource Directory (Page 22) The NonProfit Times - February 1, 2009 - Resource Directory (Page 23) The NonProfit Times - February 1, 2009 - Resource Directory (Page 24)
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