Issue brief on cooperative strategies for philanthropies hit by hard times. As a result of a recession-fueled drop in giving and a general erosion of asset values thanks to weakened capital markets, the non-profit space may be poised for a brisk round of M&A activity -- with the "A" standing for "alliance" rather than "acquisition." So at least says Arabella Philanthropic Investment Advisors, a Washington, D.C.-based consultancy to U.S. philanthropies.

Crucial

"Mergers in the non-profit world are already almost as common as in the corporate world, but most non-profits don't have the internal capacity to consider or manage mergers," says Arabella's managing director Bruce Boyd. "The recession has hit non-profits hard in two ways: with increased demand for their services, and a simultaneous decrease in funding."

Adds Boyd: "This crisis increases the need for organizations to consider all options, from back-office collaboration to alliances to full-on mergers."

A new "issue brief" on the topic of M&A in the non-profit arena provides guidelines for understanding key factors of non-profit M&A success, analysis of top trends in non-profit mergers and alliances, resources for non-profits looking for advice and funding on M&A strategies, and considerations for donors involved in non-profit mergers and alliances.

An alliance or merger doesn't fit the bill for every hard-pressed non-profit out there, "but for innovative philanthropists and nonprofits, understanding M&A as a strategy is crucial," says Boyd.

You can find out more about the Arabella report Investing in Nonprofit M&A here. -FWR

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