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Introduction to Nonprofit Strategic Restructuring: Mergers, Partnerships & Alliances

Introduction to Nonprofit Strategic Restructuring: Mergers, Partnerships & Alliances. Presenter: Jean Butzen Mission + Strategy Consulting Blogging at: www.MissionPlusStrategy.com “Like” Mission Plus Strategy on Facebook Follow us on Twitter: JeanButzen.

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Introduction to Nonprofit Strategic Restructuring: Mergers, Partnerships & Alliances

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  1. Introduction to Nonprofit Strategic Restructuring:Mergers, Partnerships & Alliances Presenter: Jean Butzen Mission + Strategy Consulting Blogging at: www.MissionPlusStrategy.com “Like” Mission Plus Strategy on Facebook Follow us on Twitter: JeanButzen

  2. The environment is driving nonprofits to consider mergers and partnerships. • There is a wide variety of creative, diverse partnership models. • Mergers, alliances, and partnerships can make nonprofits stronger and increase impact. The three main points of the workshop:

  3. 3000 2500 2000 1500 Housing Units 1000 500 0 1987 1992 1997 2005 2012

  4. What are the environmental drivers for mergers and partnerships today? How many can you name?

  5. KEY DRIVERS FOR RESTRUCTURING: • Economic forces like the recession • Pressure to raise unrestricted funding for back office expenses • Government moving to more managed-care contracting • The shift to measuring results in nonprofit organizations • More competition from nonprofits and for-profits • The impending leadership gap in management • The political push for smaller government • Complexity of social issues that clients bring to the table.

  6. What are the creative ways nonprofits are partnering, in addition to mergers? How are nonprofits benefiting from these structures?

  7. JOINT VENTURE PARTNERSHIPGOVERNED BY A 501(c)(3) BOARD OF DIRECTORS

  8. MANAGEMENT SERVICE ORGANIZATIONS501(c)(3) Nonprofit Corporation

  9. SHARED SERVICE ALLIANCE

  10. PARENT CORPORATION

  11. NONPROFIT MERGER

  12. The Role of Foundations in Nonprofit Mergers & Partnerships Jim Lewis, Chicago Community Trust

  13. STEPS TO ORGANIZING A PARTNERSHIP • 1. SWOT analysis • 2. Identify prospects • 3. Reach out • 4. Prepare a letter of intent • 5. Write a memorandum of understanding • 6. Create legal documents • 7. Implement your partnership • 8. Evaluate your partnership

  14. Questions and Answers: If you were to try and share this presentation with someone tomorrow, what parts are you not confident in?

  15. THE NEW NONPROFIT • FOUNDATION • NPO #1 • ADVOCACY ALLIANCE ABC Nonprofit PARENT CORPORATION (providing back office support) Shared Service Alliance For Joint Purchasing • NPO #2 FOR-PROFIT SUBSIDIARY, Joint Venture Partnership w/XYZ Nonprofit A product of two or three strategic mergers over a period of time • NPO #3

  16. CLOSING COMMENT Make this information useful – use it.

  17. WHERE TO GO FOR MORE INFORMATION: • To read about more actual collaboration cases, check out the Foundation Center Collaboration Database: • http://collaboration.foundationcenter.org/search/searchGenerator.php • See the Mission + Strategy Bibliography and my web page: www.MissionPlusStrategy.com

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