Charities advised to consider mergers
Charities
9th June 2009
Charities should consider merging their operations in order to cut costs and improve services, it has been suggested.
According to donors and funders advisor New Philanthropy Capital (NPC), mergers are rare - particularly among larger charities - and most seem to take place in response to crises.
The organisation noted that a recent poll by the Charity Commission indicated that three per cent of charities had considered a merger, despite the recession.
However, NPC stressed that mergers "can make charities more effective", although they carry risks and can "destroy value" if they are not conducted well, which may interest liability insurance customers.
According to the charity, more information is needed on the sector to encourage collaboration and aid decisions about mergers.
"The question is not what works best for the charity, it is what works best for the community in need," NPC added.
Recent research by the Prince's Trust and the Centre for Charitable Giving and Philanthropy at Cass Business School suggested that thousands of disadvantaged young people are being affected as youth charities suffer the effects of the recession.
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