With increased demands for their services and declining resources and financial pressures, nonprofits often find collaboration is one way to address these enormous challenges. However, sometimes a merger provides even greater value.
In 2014, ESC assisted Partners for Youth and YO:Durham, two Durham organizations, with their desire to explore the feasibility of merger. Both organizations were originally created to address the growing “opportunity gap” resulting from the chronic disconnection of Durham youth from economic and educational opportunities.
The resulting merger between Partners for Youth and YO:Durham created the new organization: Partners for Youth Opportunity. The merger has enabled the organization to more effectively reach Durham youth, develop partnerships with businesses, schools and other community stakeholders and recruit volunteers. The organization works directly with Durham’s at-risk youth to provide mentoring, employment and internships and educational support.
As Executive Director Julie Wells explained, “Both of our organizations were struggling with long-term financial stability and with the desire to serve more students than we had capacity. We recognized that we served similar groups of youth and shared the same values. If we could combine, we would have the resources to better carry out our mission.”
The Merger Assessment and Planning Process
The two organizations contracted with ESC to help assess the opportunity and guide the groups through the merger planning process.
“We recognized that we needed help,” explained Wells. “We sent out a RFP to a number of groups but selected ESC because of its clear merger planning process, previous experience and affordability.” Both organizations appointed members of their board to a special task force to assess the situation and develop a merger plan. The process took about three months.
The Consultants Were Key
“We were really pleased with our consultants,” Wells said. “They kept us on track, made sure everyone was included in the conversation and, most importantly, helped us think long term, not just short term. I highly recommend ESC to any organization thinking about a merger. There are so many challenges that you really need someone to help guide you through the process.”
The experience was so positive that the organization contracted ESC for several additional projects! ESC conducted a board development project and developed a marketing/communications plan in 2014.
In addition, ESC is providing executive coaching services to Wells that will continue into 2015. Wells was very enthusiastic about all of the consulting projects and said, “The ESC consultants have been amazing to work with. We are very grateful for their contributions.”