A merger between two organisations can provide a number of benefits by reducing overall risk, potentially taking advantages of synergies in operations, and offering a more robust and therefore attractive organisation to potential funders. It also fundamentally can enhance the organisations’ ability to support their beneficiaries. There are alternatives to becoming one organisation however, any of which may be preferable depending on your specific set of circumstances, including:
- Informal arrangements such as joint committees, information sharing, advice and support networks
- Sharing of resources under a formal agreement such as sharing premises, assets or staff, outsourcing arrangements, jointly arranged events and joint bids for funding
- Setting up a separate legal entity to undertake a joint project, for example a joint venture company set up to own and manage a shared asset
- Federations where similar charities join together to co-operate closely whilst remaining legally independent