The merger of charities means two or more separate charities coming together to form one organisation. In such cases, either a new charity is formed to carry on the work or take on the assets of the original charities or one charity assumes control of another.
Before you start, decide whether merging is in your charity’s interests. It could be less risky and more efficient to work with another charity more informally. You should read the Charity Commission’s guidance on collaborative working, making mergers succeed and its mergers checklist.
When thinking about a merger, you must make sure that:
- the governing documents of the charities involved allow the merger
- all the charities involved have similar aims
Tips for successful mergers
- The merger should be in the best interests of the charities’ beneficiaries
- The charities involved must be compatible in objects, culture and values
- Effective communication with all stakeholders from the outset is vital – processes and outcomes should be clear to all involved
- The charities’ trustees should be united in believing that the merger is the best way forward
- Identify the key roles and responsibilities in the merger process
- Communicate and negotiate in a way that reflects the interests of all parties
- Contact the Charity Commission at an early stage if advice is needed