Is a merger right for my board? A guide for not-for-profit boards considering mergers and other forms of collaborations

Everyone is talking about mergers …but is a merger right for my not-for-profit board?

If you have ever considered this question – your board is certainly not alone. Close to a third of Australia’s not-for-profit (NFP) Board Directors have discussed a merger as a potential form of collaboration at some point in the organisation’s history.

Why are boards turning to mergers?

Mergers may seem like an attractive solution to many boards facing increasing pressure to grow despite the challenges boards face today. Insights provided by the Australian Institute of Company Directors attributes this growing trend to:

  • Increasing service delivery costs due to sector professionalisation
  • Reducing Government budgets
  • Perception that NFPs are inefficient
  • Shift to market-based competition
  • Greater client choice and purchasing power
  • Increasing recognition of client need complexity

Is a merger right for my not-for-profit board?

Despite the many strategic paths Boards can take in navigating mergers and other forms of collaborations, the key is to determine which collaboration form will provide the most effective service to your targeted end-users at the lowest cost.

While mergers may work in certain circumstances, other forms of not-for-profit collaboration  may be more appropriate and should be considered. It’s more about finding the collaboration type(s) that will enable you to efficiently achieve your organisation’s mission.

About the Ebook

To address this need for Boards requiring guidance concerning executive decision-making, members of the Emerging Leaders in Governance program (ELGP) have created this eBook as a free resource guide to assist Boards in determining whether a merger or other forms of collaboration are the right fit for their organisation.

This resource presents and compares the key forms of collaboration, discusses both the advantages and disadvantages of different types of collaboration and provides lessons learned from organisations who have put various forms of collaboration into practice.

While this resource guide is intended to be a starting point, mergers and other forms of collaboration can be an attractive solution for non-for-profit boards considering ways to lower costs, but may not be appropriate in some scenarios. Additional information concerning each collaboration type is available through the ‘Available Frameworks’ links in each factsheet found here.

Leave a Reply


Receive our news, events and other special offers to your email




Congratulations to the ELGP 2022 Graduates!

On May 10th, we congratulated the ELGP graduates of 2022 at a beautiful Graduation ceremony.  Please find below their video snapshots of the program.  Our young emerging leaders have also worked very hard to create four exceptional projects that will be added to the online resource toolkit. Please refer to the links below to download […]

Connection and Collaboration at Its Best

Engaging Young Leaders on Aged Care and Community Boards (EYLACCB) attracts and develops young leaders, creating opportunities for them to use their talents to increase diversity on Boards in the aged care and community sector. It also creates opportunities for Emerging Leaders In Governance Program (ELGP) participants and leaders of the sector to come together […]

Unconvention March 2022 (Pushing Limits: Exploring Board Strategy and Risk)

What an incredible online Unconvention we had! It only seemed fitting that this Unconvention’s topic was Pushing Limits: Exploring Board Strategy and Risk after all the challenges the sector has been faced over the last 2 years due to Covid, funding cuts, workforce shortages and increases in demand for services.     Below you can […]