Top three tips on Not-For-Profit mergers

Did you know NFPs now employ over 8% of the total Australian workforce? According to the 2015 NFP Governance and Performance Study by the Australian Institute of Company Directors’ the NFP sector now employs over one million people.

The study, which surveys senior leaders to determine NFP priorities annually, has outlined the top three priorities for the next year as:

·         Maintaining or building income

·         Clarifying strategic direction

·         Diversifying income sources

Similarly Akolade recently surveyed delegates at the Effective Program Evaluation for NFPs conference and found the top issues facing NFPS are: income generation and developing innovative business models.

The Australian Charities and Not-for-profits Commission (ACNC) recently reported that the Australian NFP sector is worth a staggering $103 billion. Hence it is no surprise NFPs are aiming to be more commercially minded to boost organisational performance and income.

A key insight from the 2015 NFP Governance and Performance Study was the increasing number of mergers occurring in the NFP sector, with those surveyed providing advice on mergers.

1. Recognise the needs of your services end users and ensure that senior leadership is empathetic to their needs before and during merger
2. Explore multiple strategies and how they each align to your mission before choosing a merger
3. Make sure you and the other party have developed a clear vision for the entity post-merger

To learn more about NFP Income Generation, make sure to click here.

Having unfulfilled her childhood dream of becoming an international spy, Ellise is loving her position as Conference Production Manager at Akolade. Her favourite thing about the role is that it allows her to stay abreast of the latest news across a variety of industries while constantly learning from experts in their field.