Note: This guest post is from Julie Ha Truong of Leadership Savvy. Thanks, Julie!
It’s difficult to remember the start of 2020, but it was a golden period. We were riding the coattails of 2019 – one of the strongest fundraising years on record.
When Covid-19 hit, nonprofit leaders had to react quickly: moving programs online, furloughing staff, and canceling events. According to a CAF America study, 73% of organizations saw a decline in donations during the early phase of the pandemic.
Resilient, agile … and handing off programs
With all this disruption, organizations have learned to be resilient and agile. Some innovated quickly, while others took a more paced approach. The pandemic served as an opportunity pilot new methods and programs, leading to greater impact. For others, it led to downsizing or closure.
After 38 years, the Salem-Keizer Education Foundation in Oregon identified new partners as they moved to shut down the organization. For example, two of their programs will now be hosted by the Salem Family YMCA. It’s a great example of new partners working together to ensure services will continue for the students who most rely on them.
A merger in your future?
An August story in the Washington Post projected that one-third of nonprofits may merge or close, especially those who are perceived as not serving “essential missions.”
The Sustained Collaboration Network, a national network of funders, is seeing an increasing number of inquiries about strategic partnerships.
More organizations are considering the ways in which strategic restructuring – partnerships, mergers, collaborations, etc. – may increase mission and operational impact. For some groups, the Covid-19 stalled collaboration discussions. For others, the pandemic opened new possibilities.
Mergers and partnerships come in all shapes and sizes
While mergers and partnerships slowed during 2020, here are a few completed this year.
Street Wise and Chicago Metro YWCA (March 2020)
Street Wise is a respected weekly news magazine sold by vendors experiencing homelessness; most of these vendors are men. The Chicago Metro YWCA’s mission is to eliminate racism and empower women by promoting peace, justice, freedom, and dignity for all. Street Works will benefit from YWCA’s operational support, while the YWCA will be able to reach a new target population.
SteppingStone Theatre for Youth and Park Square Theater (August 2020)
Two very different theaters in St. Paul, Minnesota both experienced financial troubles. In response to the pandemic, they decided to share the same building. One primarily offers matinees. The other presents evening shows, which reduces competition for the performance space. They will also share an executive director while remaining separate nonprofits.
Santa Barbara Boys and Girls Club and United Boys and Girls Club of Santa Barbara County (July 2020)
Boys and Girls Clubs have been merging across the U.S., but a pandemic doesn’t make this process any easier. In this case, both organizations had the same goal: provide more programs and services to more children in Santa Barbara County, while also saving money. This merger was was announced in July 2020, though the process had started in 2019.
Sometimes mergers don’t happen
This would have been a complex, critical partnership among four hospitals facing financial challenges.
A significant portion of merger costs would have been covered by the state of Illinois. Given economic uncertainties due to Covid-19, the state assembly was unable to pass the necessary funding package. As a result, the hospitals called off the merger; a huge setback for their majority-Black community with limited access to high-quality healthcare.
What’s next for you?
As we end 2020, organizations are shifting from emergency response to planning for 2021 and beyond. They’re seeing new possibilities by taking lessons learned through the pandemic and pairing them with traditional planning processes.
Where should you start? Begin a conversation with your board and key stakeholders regarding long-term vision and values. Take the time for facilitated dreaming and exploration. Consider solutions beyond current services and strategies. Perhaps your bigger, bolder mission can be met more effectively through partnership with other organizations.
Along the way, gather input from a range of people who could be impacted. This will increase buy-in when you’re ready to put your plan in action.
When you develop a mindset of possibility and inclusivity, you can find success during this crisis.
Nice article Julie! I didn’t know about the merger in Salem- and how the hospitals in Illinois couldn’t merge. I hope more nonprofits merge during this time. We really need it!
Thanks Mazarine! Yeah, it was tough to see that fall through. I too believe mergers and partnerships hold so much potential. It’s never easy but can yield such amazing results.