1 / 11

Lessons Learned from Synagogue and Other Nonprofit Mergers

Lessons Learned from Synagogue and Other Nonprofit Mergers. by Jan Glick For the URJ Biennial, December, 2013. Why Merge or Consolidate?. Many synagogues f inancially vulnerable: dipping into operating reserves, having cash flow problems

coen
Download Presentation

Lessons Learned from Synagogue and Other Nonprofit Mergers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lessons Learned from Synagogue and Other Nonprofit Mergers by Jan Glick For the URJ Biennial, December, 2013 Jan Glick & Associates www.janglick.com

  2. Why Merge or Consolidate? • Many synagogues financially vulnerable: dipping into operating reserves, having cash flow problems • Many synagogues not sustainable: Average cost per member very significant for most families • If it is the best option (i.e. beats closure, is stand-alone truly feasible?) • Achieves economies of scale to improve financial condition • Build capacity, improve systems in nearly all functional areas Jan Glick & Associates www.janglick.com

  3. Critical Success Factor In order to be successful, the two organizations involved must feel a sense of urgency to undertake such a major change. Nearly universal desire to retain most nuances of each synagogue’s minhag typically outweighs interest in merger/consolidation until future survival is clearly in doubt (i.e. people avoid change until survival in doubt) Jan Glick & Associates www.janglick.com

  4. When to Act? Don’t Wait Too Long High Best Time to Act Too Late for Effective Merger (i.e. Bailout, Take-over) CongregationalResources, Membership, and/or Vibrancy Low Time Jan Glick & Associates www.janglick.com

  5. Most Critical Issues & Barriers Minhagof each congregation will probably drive the terms and conditions of the deal • Conservative-Reform • Reform-Reform • Minhagim of Reform Facilities • Existing facilities emotionally associated with one or other congregation; creates incentive for new facility Rabbi(s) and staff: Some job losses likely, although few compared to private sector mergers; specter of rabbi losing job can make rabbi(s) oppose mergers Jan Glick & Associates www.janglick.com

  6. What Happens to Staff? • Should be treated fairly, according to Jewish values • Savings or economies of scale possible from administrative positions such as finance and operations. • Communication is key. For example, any potential fear of job loss and/or compensation for laid off employees can be addressed early in the process by stating these as agreed upon principles in an early Memorandum of Understanding between the parties. Jan Glick & Associates www.janglick.com

  7. What Happens to Board? • Number of board seats roughly proportional to size • The stronger organization can decide to be “generous” with board seats • Initially, president from stronger congregation, VP from weaker, with plans to rotate/swap in future • Committees also share members from each precursor congregation, from finance to programs, ritual objects, etc. • Ideally, over a period of years, members see themselves as a single, unified community Jan Glick & Associates www.janglick.com

  8. Managing Expectations, Hopes and Fears • Develop process working from vision gradually toward details. • Sequence of events and how they are framed can make the difference between smooth and rocky processes; Don’t tackle trickier issues until appropriate time. • Initial approach to other congregation: Plan with care; usually weaker approaches stronger • Facilitation plan to address misunderstandings, relationship problems, etc. that often involve autonomy, self-interest, politics or culture. • Trust is crucial. Jan Glick & Associates www.janglick.com

  9. Managing Expectations, Hopes and Fears, 2 • Confidentiality considerations • A consultant with merger experience can be very helpful, as there are many opportunities for an (unintended) statement, action or misunderstanding to derail the process. A “neutral” consultant with experience can address such issues proactively. • Handle legal aspects carefully. Example: after the partners know what they want to accomplish, use attorneys to complete the deal, insure legality and appropriate structure; but only after most parameters of deal are structured. Jan Glick & Associates www.janglick.com

  10. Don’t Rush It • Time to implement often depends on: • Extent of political or cultural issues that require discussion and relationship-building. • Extent of contractual relationships with third parties such as lenders that require transfer, assignment, and/or extensive outside review. • Longer time line means dealing with dual scenarios & ambiguity for longer. • Thorough, well-planned process helps • Shortcuts not possible. Jan Glick & Associates www.janglick.com

  11. Life After a Merger • Not a panacea: Still have day to day challenges such as fundraising, etc. • Systems and culture integration may take long time to work out. • How do we know it is working? • No longer dealing with survival, rather with daily tzuris Jan Glick & Associates www.janglick.com

More Related