By NEO Law Group
Collaboration with external partners is often mentioned as a top priority to enable nonprofits to more effectively and efficiently advance their missions. Collaborations may take on many different forms: from informal understandings between organizations regarding the sharing of information to formalized affiliation agreements creating regional chapters, and from joint ventures between nonprofit and for-profit organizations to mergers between two or more nonprofits. Performing appropriate due diligence before entering into a collaborative relationship, providing for proper terms and conditions in a written agreement (to ensure compliance and risk management), and understanding the nature of the transaction and any potential alternatives are all critical to managing and governing in the best interests of an organization.
I had a nice opportunity today to talk with the folks at La Piana Consulting, a national firm dedicated to strengthening nonprofits and foundations, about nonprofit mergers from a legal perspective. La Piana Consulting was founded by David La Piana, a leading expert on strategic restructuring – including mergers,...
I attended the 2009 WCTEO in Los Angeles last Thursday and Friday. It’s always a great conference for professionals in the nonprofit and tax-exempt sector: impressive and knowledgeable speakers, interesting topics, and a chance to meet with peers and people you greatly admire. My only and very...
Sharing Administrative Services, Part IV: Joining Forces in the Back Office – Lodestar Foundation Resources The Lodestar Foundation’s mission is to maximize the growth and impact of philanthropy by encouraging philanthropy, public service and volunteerism; and by supporting long-term collaborations among nonprofits working in the same area in order...
Sharing Administrative Services, Part III: Joining Forces in the Back Office – Management Service Organizations Management Service Organization: MACC CommonWealth MACC CommonWealth is an MSO that was created in January 2007 by five social services groups to provide finance, human resources, and technology. With a 20 employee staff comprised of the...
Sharing Administrative Services, Part II: Joining Forces in the Back Office – Administrative Collaboration and Consolidation On June 3, 2009, The Chronicle of Philanthropy presented the webinar, “Joining Forces in the Back Office: How Collaboration Can Help Your Organization,” moderated by Nicole Wallace, Senior Writer at The Chronicle of...
While the idea of a merger can seem like a promising avenue for increased efficiency, increased fundraising, and the like, merging is a multi-step process with important legal implications. As Jerald A. Jacobs explains in his article, "All About Mergers of Nonprofit Organizations," every organization should consider the mechanics...
Some nonprofit organizations facing financial troubles or wishing to enhance the effects of their efforts may find their solution in a merger. According to the New York Times (November 11, 2007), the merging of the Hands on Network and Points of Light Foundation resulted in a combined budget of...
What is a joint venture? Broadly defined, a joint venture is a relationship which arises from an express or implied agreement between two or more parties to undertake some common objective for their mutual benefit. More narrowly defined, a joint venture is a separate legal entity formed by two...
The Associated Press reported on May 4, 2006 that the Community Foundation Silicon Valley and the Peninsula Community Foundation have announced that they are considering a merger to create a combined endowment of $1.36 billion. The merger would result in the nation’s third largest community foundation, behind only the...