Not-for-profit (NFP) mergers could be a way to significantly increase impact and continue to sustainably deliver impact. Five leaders from the Australian NFP sector share five recommendations on what worked in mergers they were involved in and what they could have done differently. They represent the disability, aged care, community services, and justice and legal sectors. 

Policy has a part to play in supporting the care economy, such as by establishing a care and support sector Sustainability Fund. Such a fund could support strategic and operational transformation across the NFP sector. 

Key findings

• NFPs typically lack the financial reserves and professional expertise in house needed to execute a merger.
• All agreed on the importance of a clear vision to create clarity and a compass through the decision-making as well as developing principles to guide the process.
• It is important to create a unifying culture, to create shared experiences and to involve and appoint the right leadership early to plan and own the merger.
• Mergers are expensive and take time. Ensure sufficient resources and the right skills and experience, both internally and externally, to navigate what can seem like unchartered waters.

Recommendations

1. Define your true north and don’t waiver
2. Excite and unite your people
3. Appoint the board and leadership early
4. Be prepared to invest
5. Get the right support.