UK: To merge or not to merge?

The UK Voluntary Sector Almanac 2006 reveals that although the number of charities is growing two thirds of the total income of the sector goes to just 2%, usually the largest organisations. In other words the largest organisations are the ones most likely to succeed. As a result some NGOs working in similar area are considering merging.

For example the two main UK charities that work with old people, Age Concern and Help the Aged, are making the third attempt in 10 years to merge into a single organisation. The boards of both charities have met twice this year and probably intend to make a decision in November 2007.

The aim of the merger is to build "a world in which older people flourish", but there are a number of obstacles: first of all different approaches to governance, then the necessity to show to the Age Concern federation all the benefits, and finally questions of costs and savings. The two associations have always worked in partnership but sometimes in competition which is likely to increase in the future if they do not merge. So there are many issues to debate before merging but they still have the pressure of patrons, parliamentarians and founders to merge.

The next step on the agenda will be to discuss which existing activities of the two charities should continue, and to establish a common line on pensions, contracts with third parties, liabilities and leases. And last but not least, who is going to be the leader? Gordon Lishman from Age Concern England or Michael Lake from the Help the Aged?

Any merger between NGOs presents difficulties but there is an alternative.

SWiM (Sharing Without Merging) is a strategy set up by Bassac which is a consultancy service that helps organisations to work together without merging.
SWiM?s provides 15 days? consultancy where it meets with partners individually, before hosting joint meetings to help all partners to decide how best to move forward.

Barton Hill Settlement represents a successful case. The Barton Hill Settlement is a partnership in Bristol (the largest city in south west England) of three associations Barton Hill Primary School, Children?s Centre and Wellspring Healthy Living Centre which have polled resources to attract funding and to streamline administration. At the same time they are also seeking to share back office functions, expertise, experience and staff, without losing their identities. The partnership is based on shared values to provide maximum benefit for the community. They aim to realise a Children?s Centre, to develop family learning opportunities, to improve community cohesion and to face issues related to mental health, drug and alcohol together.

Bill Lochhead, the Barton Hill Settlement?s chairperson said: ?The three organisations work with a number of marginalised groups in the area and share a common desire to provide them with one seamless and improved service ? Mergers are almost always painful. They can improve organisational structure, but they inevitably cause community-based organisations to lose touch with their communities because the merged organisation invariably finds itself part of a monolithic body that struggles to reach out to local individuals?.

www.bassac.org.uk
www.helptheaged.org.uk/en-gb
www.ageconcern.org.uk