Study Examines Past Mergers and Predicts Future Increase

The Philanthropy Journal posted the following feature concerning a study of nonprofits considering mergers as an option for staying in business. The Bridgespan Group's study relates that during this present recession about 2 in 10 nonprofits are considering merging. This finding is consistent with their 11-year study of more than 3,300 nonprofits in four states that concludes nonprofits typically merge because of financial troubles or leadership problems. The 11-year study also identifies three factors that predict successful mergers and acquisitions: a larger number of nonprofits with many small players, significant competitive pressure, and obstacles to organic growth. Feel free to share your own feedback about this study.