When two nonprofit corporations merge, the combined entity (legally, the surviving corporation) may adopt a very different governance model than that of either corporation. Particularly where neither corporation is in crisis, the board of the combined entity may include an agreed upon percentage of directors from each corporation. But leaders of each corporation may feel […]
nonprofit merger
Nonprofit Mergers: Tips & Traps
As we have discussed in previous posts on the motivations and the risks associated with nonprofit mergers, nonprofit leaders should enter into any merger discussions with sufficient knowledge and understanding to make sound decisions. In this post, we identify 8 tips and 8 traps of nonprofit mergers. 8 Tips Check the organization’s own readiness, including […]
Nonprofit Mergers – Part I: Basic Legal Considerations
Nonprofit corporations may decide to merge for many reasons, including to better advance a common purpose or to expand the range of services offered to common beneficiaries. Generally, in a simple 2-party merger between A (the surviving corporation) and B (the merging corporation also referred to in the law as the disappearing corporation), A automatically […]