While a lot of us have talked about the potential, value, and – in some cases – need for more mergers and acquisitions in the non-profit space, recent events have made it clear: now is the time.

Immediately after recent US aid cuts, our team circulated a survey to civil society and international development organizations – and the resulting data, from more than 700 organizations, suggests that nearly 60% of organizations may close within the next 6 months. Given the recent stop work orders, contract and grant cancellations, and cascading effects of international civil society support shifts, a large number of non-profit, international development, and civil society organizations are confronting the need to re-organize. 

Reorganizing is easier to say than do, though, and mergers and acquisitions in the nonprofit world are not nearly as common as they should be – but they can amplify impact and efficiencies. Strategic partnerships and mergers typically take 1-2 years to implement, but the hundreds of organizations facing newly shortened runways will have  to act a lot faster if they are going to prevent the loss of significant amounts of knowledge, expertise and assets. 

That’s why the teams at Accountability Lab, Development Gateway: An IREX Venture and Digital Public, partnered up: develop both a new toolkit, a partnership matching service, and professional support infrastructure aimed at assisting the organizations facing this challenge. While there’s no “one” name or type of transition that captures the reorganizing work ahead – from partnerships to mergers to legacy planning, our toolkit aims to de-mystify the processes and work that organizations will need to do to prepare for next steps. We are especially, and specifically, focused on helping mission-driven organizations navigate transitions in ways that preserve valuable teams, projects, technology, and knowledge. 

While resources are important, we are dedicated to a more active approach – and so we’ve also launched a partner-matching service for groups hoping to bring on new initiatives and those who are hoping to help find their work find new homes. Already, we’ve had a number of promising discussions on how to get started, and heard the importance of centering trust, alignment, and proactive engagement. Designing a partnership or organizational transition is about identifying, articulating, and committing to practical, operational efforts to invest in a shared vision. The exercise has also shown how focusing on value proposition helps partners find alignments. Often, an inventory is a good starting point.

• Mapping what makes you unique

Consider the elements that differentiate your work or approaches. These may not be “things,” and instead be ways of doing things, captured in a toolset or service architecture, but they may be important to preserve and valuable to other organizations. Listing your team’s core skills and comparative advantages is also critical, along with ongoing lines of revenue. It’s helpful to think about the assumptions and dependencies required to keep the lines operating.

• Analyzing the landscape 

Many organizations may have a shared definition of problems they are trying to solve but differ considerably in terms of their context and approach. Think about who is prioritising the impact or vision you hope to have and who is solving similar structural challenges in your field. Also, who has infrastructure and investments in your sector? Contexts adjacent to your work are likely to be aligned with it. 

• Merger, partnership, or wind-down?

Consider several types of alignment based on mission, strategic approach, operations, technology, finances, culture, and politics. Each serves as a critical checkpoint to ensure that any merger or partnership enhances both organizations and sustains their shared goals. Thoroughly assessing alignment allows you to prioritize what’s important and avoid partnerships that might not align with your long-term vision. 

• Finalizing solid partnership agreements

Once you identify the right partner, negotiations need to be handled carefully—ensuring all parties understand their roles, set clear expectations, and use frameworks that keep the process on track. Manage the tension between “fast,” “sustainable,” and “perfect.” The effort that makes the difference is being willing to engage in the messiness, build feedback loops and external legitimacy with stakeholder groups, and focus on sustaining the things that you prioritized in the beginning. 

Download our Strategic Partnership Toolkit above

Overall, setting clear expectations and identifying deal-breakers early in the process will help safeguard each organization’s mission and values. Related considerations, such as digital development safety nets that consolidate and integrate infrastructures and preserve institutional knowledge and assets, must also be carefully outlined. This work ties into valuable, overarching objectives in terms of protecting and maintaining the global civil society ecosystem. Strategic partnerships and mergers of this kind offer a viable path for many organizations to sustain their impact amid unprecedented challenges.

*Is your organization considering a strategic partnership or merger of some sort? Accountability Lab, Development Gateway: An IREX Venture, and Digital Public would like to offer support for confidential conversations, documentation of needs, and identification of potential matches between organizations to fast-track collaborations.

Please complete the survey here or reach out to: Khadijah Chang [email protected] to discuss next steps. 

Accountability Lab