edf40wrjww2CF_PaperMaster:Desc
A merger occurs when two or more organizations decide to join forces and become one organization. One or more organizations must dissolve for this to happen. Sometimes all involved organizations dissolve and take on a completely new name. Sometimes one organization survives, and keeps their name, while the dissolved organization(s) must fall into the surviving organization's business structure. In the for-profit sector, this latter situation would be considered an "acquisition". However, in non-profit organizations, there are no owners. Therefore, since the ownership of another organization cannot be acquired, legally it would be considered a merger (Strategic Restructuring).
There are two types of mergers: horizontal and vertical. A horizontal merger is one that occurs when two or more organizations with similar goals, missions or interests merge together to create one organization. A vertical merger is one that occurs when two or more organizations with different missions come together. Usually, the services they offer can work together in some complimentary way. Horizontal mergers are more common in the non-profit sector (An Itch To Get Hitched).
The overall goal of a merger in the non-profit sector is to create synergy. This means that as a whole, the merged organizations will work more efficiently or with greater quality than the sum of its part did separately. Other goals for mergers may include strengthening services, pooling resources, reducing duplication, lowering costs, and establishing a larger geographical presence. Under the right circumstances, a merger could be very beneficial to a non-profit organization, and to the individuals they serve.
Probably the best reason to partake in a me ...