SlideShare a Scribd company logo
1 of 21
Download to read offline
Introduction to
Nonprofit Strategic
Restructuring
Presenter:
Mary Anderson, Senior Managing
Consultant, M+S Consulting
The three main points
of today’s webinar
1. An explanation of nonprofit strategic re-
structuring and when can it be a beneficial
strategy
2. The specific examples of restructuring models
and pros and cons of each
3. How to engage the board in the idea of exploring
a restructuring strategy
What are the environmental
drivers for mergers and
partnerships today?
How many can you name?
Key Drivers For Restructuring
1. Economic forces like the recession
2. Pressure to raise unrestricted funding for back office
expenses
3. Government moving to more managed-care contracting
4. The shift to measuring results in nonprofit organizations
5. More competition from nonprofits and for-profits
6. The impending leadership gap in management
7. The political push for smaller government
8. Complexity of social issues that clients bring to the table
9. The Affordable Care Act
5
What do we mean by
Collaboration?
Range Of Nonprofit Collaboration Models
Degree Of Corporate Integration
Which Can Be Required to Complete the Collaboration
STRATEGIC RE-STRUCTURING SPECTRUM
• Membership
association
• Advocacy coalition
referral agreement
• Partnership
• Program or
Business Shared
Service Alliance
• Joint Venture
• Parent/Subsidiary
• Merger• r
0% 50% 100%
• Management
Service
Organization
• Alliance
• Co-Operative
Network
The Definition of
Restructuring
A strategy that consolidates corporate
or program structure in a variety of
ways, all or in part, together with one
or more nonprofit organizations, in
order to advance mission.
Benefits Nonprofits Seek
from Re-Structuring
• Expand geographic reach or improve market position
• Spread administrative expenses to become more efficient
• Create a continuum of services for clients
• Increase service offerings
• Improve their public profile or create greater political influence
• Enlarge the staff and achieve greater specialization of back office
and program services
• Collaborate and share knowledge and training for staff and clients
• Engage in more strategic fundraising, collaborate on campaigns,
and share fundraising resources
• Share the risk and reward of entrepreneurial activities
• Strengthen staff, board, and volunteer leadership
Structure
Breeds
Behavior
Purpose
Defines
Structure
AND
8
Types of Structures
• Joint Ventures
• Management Service Organizations
• Alliances
• Parent/Subsidiary
• Mergers
9
Joint Venture Partnership
Governed by a 501(c)(3) Board of Directors
Central Square
Theatre
501 (c)3 nonprofit corporation
Underground
Railway
Theater
The Nora
Theatre
Company
Board of Directors
Plus
Board Chairs
Tennessee Aquarium
Joint Venture Partnership
Administrative Consolidation with a Lead Partner
Creative
Discovery
Museum
Hunter Museum
of American Art
Contract
Independent
Institutions with
their own Boards
L E A D PA RT N E R
Management Service Organizations
501(c)(3) Nonprofit Corporation
Finance
General Accounting
Budgeting support
Management of payables
and receivables
Audit support
990 and other
government filings
MACC Commonwealth
501(c)3 with 10 Autonomous Members
Human
Resources
Compensation, benefits,
Time tracking,
Leave administration,
Staffing support,
Records management,
Performance review systems
Information
Technology
Infrastructure
management, Helpdesk,
Client data system,
Wide-area networking and
Internet access
Voice-over-IP (telephony)
| 13
Shared Service Alliance
Happy
Acres
Day
Care
NETWORK
HUB
Shared Staff
Mary’s
Family
Child
Care
Home
Tender
Tots
Pre School
Lu’s
After-School
Program
Green Hills
Child Care
Center
Newberry
Nursery
School
Parent Corporation
Liberty Lutheran Services, Southeast PA
$26MM administrative consolidation/merger,
with separate corporate structure
Nonprofit
1
Nonprofit
2
Nonprofit
3
Nonprofit
4
Nonprofit
5
Board Board Board Board Board
Umbrella 501(c)3
New Board
Representative from each member organization
Executive Team
lead by CEO
VP
VP
VP
VP
VP
Nonprofit Merger
Difficulties of Restructuring
Models
• Unclear chain of command
• Require Ongoing time to process decisions
• Inequitable distribution of duties
• Lack of clarity around roles
• Require Middle managers to do double
duty
• Staff turnover
18
Strengths of Restructuring
Models
• May be easily disassembled
• Can allow for autonomy
• Improve market position
• Offer legal protection
• Share cost and risk
• Create economies of scale
• Create continuum of services
• Improve quality of back office services
Engaging the Board
• How to engage the board in the idea of exploring
a restructuring strategy?
 Create a Strategic Planning Committee
 Review your strengths, weaknesses, opportunities, and
threats
 Review all possible strategies to address your
weaknesses and threats, including strategic re-
structuring strategies
 Determine which strategies best leverage your strengths
and opportunities
Questions and Answers
Mary E. Anderson
mary@missionplusstrategy.com
Coming Up:
• Selecting a Partner and
Negotiating a Letter of Intent
• The Roles of Staff and Board
Members in this Process
Part II: September 25th, Noon, CST
Part II: October 9th, Noon, CST

More Related Content

What's hot

C5 e8 community partnerships
C5 e8 community partnershipsC5 e8 community partnerships
C5 e8 community partnershipsocasiconference
 
Understanding Reform through Political Economy (EN)
Understanding Reform through Political Economy (EN)Understanding Reform through Political Economy (EN)
Understanding Reform through Political Economy (EN)Paul Mithun
 
5 major opportunities awaiting manufacturers and their CFOs
5 major opportunities awaiting manufacturers and their CFOs5 major opportunities awaiting manufacturers and their CFOs
5 major opportunities awaiting manufacturers and their CFOsGrant Thornton LLP
 
How to do Stakeholder Analysis
How to do Stakeholder AnalysisHow to do Stakeholder Analysis
How to do Stakeholder AnalysisAberdeen CES
 
The Corporation And Its Stakeholders
The Corporation And Its StakeholdersThe Corporation And Its Stakeholders
The Corporation And Its StakeholdersHector Rodriguez
 
Building resilient, high impact charities
Building resilient, high impact charitiesBuilding resilient, high impact charities
Building resilient, high impact charitiesNicolas Ponset
 
Rsa Corporation Mergers And Acquisitions
Rsa Corporation   Mergers And AcquisitionsRsa Corporation   Mergers And Acquisitions
Rsa Corporation Mergers And Acquisitionsctempleton
 
Stakeholder Analysis Pauline Hall
Stakeholder Analysis Pauline HallStakeholder Analysis Pauline Hall
Stakeholder Analysis Pauline Hallklenihan
 
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...Dr Victtor Izidor
 
Unit v strategic issues in nonprofit management
Unit v strategic issues in nonprofit managementUnit v strategic issues in nonprofit management
Unit v strategic issues in nonprofit managementDeborah Sharon
 
Wellness –A Healthy Engagement: Organizational and Personal Fitness
Wellness –A Healthy Engagement: Organizational and Personal Fitness Wellness –A Healthy Engagement: Organizational and Personal Fitness
Wellness –A Healthy Engagement: Organizational and Personal Fitness Deb Nystrom
 

What's hot (20)

C5 e8 community partnerships
C5 e8 community partnershipsC5 e8 community partnerships
C5 e8 community partnerships
 
Understanding Reform through Political Economy (EN)
Understanding Reform through Political Economy (EN)Understanding Reform through Political Economy (EN)
Understanding Reform through Political Economy (EN)
 
Community Partnerships
Community PartnershipsCommunity Partnerships
Community Partnerships
 
5 major opportunities awaiting manufacturers and their CFOs
5 major opportunities awaiting manufacturers and their CFOs5 major opportunities awaiting manufacturers and their CFOs
5 major opportunities awaiting manufacturers and their CFOs
 
Stake holder
Stake holderStake holder
Stake holder
 
Stage 2.1 Stakeholder Mapping
Stage 2.1 Stakeholder MappingStage 2.1 Stakeholder Mapping
Stage 2.1 Stakeholder Mapping
 
B4: Governance and leadership in the digital era: Using technology to improve...
B4: Governance and leadership in the digital era: Using technology to improve...B4: Governance and leadership in the digital era: Using technology to improve...
B4: Governance and leadership in the digital era: Using technology to improve...
 
How to do Stakeholder Analysis
How to do Stakeholder AnalysisHow to do Stakeholder Analysis
How to do Stakeholder Analysis
 
The Corporation And Its Stakeholders
The Corporation And Its StakeholdersThe Corporation And Its Stakeholders
The Corporation And Its Stakeholders
 
The 30% Club journey and implications for charity boards
The 30% Club journey and implications for charity boardsThe 30% Club journey and implications for charity boards
The 30% Club journey and implications for charity boards
 
Building resilient, high impact charities
Building resilient, high impact charitiesBuilding resilient, high impact charities
Building resilient, high impact charities
 
Rsa Corporation Mergers And Acquisitions
Rsa Corporation   Mergers And AcquisitionsRsa Corporation   Mergers And Acquisitions
Rsa Corporation Mergers And Acquisitions
 
Stakeholder Analysis Pauline Hall
Stakeholder Analysis Pauline HallStakeholder Analysis Pauline Hall
Stakeholder Analysis Pauline Hall
 
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...
A Case of Stakeholder Management by Oil and Gas MNCs in Nigeria: An Illustrat...
 
Unit 509 lo 1 master
Unit 509 lo 1 masterUnit 509 lo 1 master
Unit 509 lo 1 master
 
Building Association Chapters
Building Association ChaptersBuilding Association Chapters
Building Association Chapters
 
Unit v
Unit vUnit v
Unit v
 
Unit v strategic issues in nonprofit management
Unit v strategic issues in nonprofit managementUnit v strategic issues in nonprofit management
Unit v strategic issues in nonprofit management
 
Wellness –A Healthy Engagement: Organizational and Personal Fitness
Wellness –A Healthy Engagement: Organizational and Personal Fitness Wellness –A Healthy Engagement: Organizational and Personal Fitness
Wellness –A Healthy Engagement: Organizational and Personal Fitness
 
Stakeholder mapping
Stakeholder mappingStakeholder mapping
Stakeholder mapping
 

Similar to Introduction to Nonprofit Strategic Restructuring

Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...
Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...
Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...Marina Dawson
 
Alternative financing models to strengthen third sector resilience in Africa
Alternative financing models to strengthen third sector resilience in AfricaAlternative financing models to strengthen third sector resilience in Africa
Alternative financing models to strengthen third sector resilience in AfricaNGNAOUSSI ELONGUE Cedric Christian
 
Using Strategic Alliances To Open Doors June172010
Using  Strategic  Alliances To  Open  Doors June172010Using  Strategic  Alliances To  Open  Doors June172010
Using Strategic Alliances To Open Doors June172010LauricellaandAssociates
 
Best Practices to Enhance Collaboration Across Boundaries
Best Practices to Enhance Collaboration Across BoundariesBest Practices to Enhance Collaboration Across Boundaries
Best Practices to Enhance Collaboration Across BoundariesHRDQ-U
 
How to Excite Your Executives About Online Community!
How to Excite Your Executives About Online Community!How to Excite Your Executives About Online Community!
How to Excite Your Executives About Online Community!Leader Networks
 
Five Good Ideas: Working with Volunteers
Five Good Ideas: Working with VolunteersFive Good Ideas: Working with Volunteers
Five Good Ideas: Working with VolunteersMaytree
 
Capacity Building: What it is and Why it Works!
Capacity Building: What it is  and Why it Works!Capacity Building: What it is  and Why it Works!
Capacity Building: What it is and Why it Works!Aaron Holland-Plum
 
Collaborative Governance Webinar
Collaborative Governance WebinarCollaborative Governance Webinar
Collaborative Governance WebinarMichael Schiel
 
Introduction to CHC conference
Introduction to CHC conferenceIntroduction to CHC conference
Introduction to CHC conferenceDavid Wilcox
 
Change Exchange
Change ExchangeChange Exchange
Change ExchangeCare City
 
Pd Community Partnerships C6
Pd Community Partnerships C6Pd Community Partnerships C6
Pd Community Partnerships C6ocasiconference
 
Breaking Down Silos: When HR and Finance Collaborate
Breaking Down Silos: When HR and Finance CollaborateBreaking Down Silos: When HR and Finance Collaborate
Breaking Down Silos: When HR and Finance CollaborateB2B CFO Mark Johnson
 
Keynote cynthia bailie
Keynote cynthia bailieKeynote cynthia bailie
Keynote cynthia bailieGPNP
 
Accelerating the Matrix: What's a Leader to Do?
Accelerating the Matrix: What's a Leader to Do?Accelerating the Matrix: What's a Leader to Do?
Accelerating the Matrix: What's a Leader to Do?Insight Experience
 
Policyadvocacyregionalprojectkathmandu
PolicyadvocacyregionalprojectkathmanduPolicyadvocacyregionalprojectkathmandu
PolicyadvocacyregionalprojectkathmanduHammad Siddiqui
 

Similar to Introduction to Nonprofit Strategic Restructuring (20)

Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...
Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...
Friendship, Courtship, Partnership: Why Canadian nonprofits need to think abo...
 
Alternative financing models to strengthen third sector resilience in Africa
Alternative financing models to strengthen third sector resilience in AfricaAlternative financing models to strengthen third sector resilience in Africa
Alternative financing models to strengthen third sector resilience in Africa
 
Using Strategic Alliances To Open Doors June172010
Using  Strategic  Alliances To  Open  Doors June172010Using  Strategic  Alliances To  Open  Doors June172010
Using Strategic Alliances To Open Doors June172010
 
Best Practices to Enhance Collaboration Across Boundaries
Best Practices to Enhance Collaboration Across BoundariesBest Practices to Enhance Collaboration Across Boundaries
Best Practices to Enhance Collaboration Across Boundaries
 
Co production overview for Carers Week in Herts
Co production overview for Carers Week in HertsCo production overview for Carers Week in Herts
Co production overview for Carers Week in Herts
 
2017-03-28 Inside CSR for Nonprofits
2017-03-28 Inside CSR for Nonprofits2017-03-28 Inside CSR for Nonprofits
2017-03-28 Inside CSR for Nonprofits
 
How to Excite Your Executives About Online Community!
How to Excite Your Executives About Online Community!How to Excite Your Executives About Online Community!
How to Excite Your Executives About Online Community!
 
Five Good Ideas: Working with Volunteers
Five Good Ideas: Working with VolunteersFive Good Ideas: Working with Volunteers
Five Good Ideas: Working with Volunteers
 
Capacity Building: What it is and Why it Works!
Capacity Building: What it is  and Why it Works!Capacity Building: What it is  and Why it Works!
Capacity Building: What it is and Why it Works!
 
Collaborative Governance Webinar
Collaborative Governance WebinarCollaborative Governance Webinar
Collaborative Governance Webinar
 
Introduction to CHC conference
Introduction to CHC conferenceIntroduction to CHC conference
Introduction to CHC conference
 
Change Exchange
Change ExchangeChange Exchange
Change Exchange
 
Pd Community Partnerships C6
Pd Community Partnerships C6Pd Community Partnerships C6
Pd Community Partnerships C6
 
Breaking Down Silos: When HR and Finance Collaborate
Breaking Down Silos: When HR and Finance CollaborateBreaking Down Silos: When HR and Finance Collaborate
Breaking Down Silos: When HR and Finance Collaborate
 
The Effective Director
The Effective Director  The Effective Director
The Effective Director
 
Keynote cynthia bailie
Keynote cynthia bailieKeynote cynthia bailie
Keynote cynthia bailie
 
Accelerating the Matrix: What's a Leader to Do?
Accelerating the Matrix: What's a Leader to Do?Accelerating the Matrix: What's a Leader to Do?
Accelerating the Matrix: What's a Leader to Do?
 
Defining Strategic Meeting Management
Defining Strategic Meeting ManagementDefining Strategic Meeting Management
Defining Strategic Meeting Management
 
Policyadvocacyregionalprojectkathmandu
PolicyadvocacyregionalprojectkathmanduPolicyadvocacyregionalprojectkathmandu
Policyadvocacyregionalprojectkathmandu
 
Capacity Framework
Capacity FrameworkCapacity Framework
Capacity Framework
 

Recently uploaded

PPT Item # 2 -- Announcements Powerpoint
PPT Item # 2 -- Announcements PowerpointPPT Item # 2 -- Announcements Powerpoint
PPT Item # 2 -- Announcements Powerpointahcitycouncil
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfcoalitionindiasanita
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationStephen Abram
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Christina Parmionova
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.Christina Parmionova
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxNAP Global Network
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...JSchaus & Associates
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docxJIT KUMAR GUPTA
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonAryaCapale
 
2024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 172024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 17JSchaus & Associates
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Christina Parmionova
 
War in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAWar in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAival6
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.ahcitycouncil
 
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...Congressional Budget Office
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsSERUDS INDIA
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16JSchaus & Associates
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Christina Parmionova
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.SERUDS INDIA
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...Christina Parmionova
 
World Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportWorld Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportEnergy for One World
 

Recently uploaded (20)

PPT Item # 2 -- Announcements Powerpoint
PPT Item # 2 -- Announcements PowerpointPPT Item # 2 -- Announcements Powerpoint
PPT Item # 2 -- Announcements Powerpoint
 
india sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdfindia sanitation coalition Swachata Abhiyan ​.pdf
india sanitation coalition Swachata Abhiyan ​.pdf
 
Hub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspirationHub Design Inspiration Graphics for inspiration
Hub Design Inspiration Graphics for inspiration
 
Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024Leveraging Water for Peace - World Water Day 2024
Leveraging Water for Peace - World Water Day 2024
 
For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.For World Water Day 2024, we promote the vital link between water and peace.
For World Water Day 2024, we promote the vital link between water and peace.
 
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptxDB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
DB9_BTR_Webinar_Slidedeck_20230320 (1).pptx
 
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
SPONSORED CONTENT - MyGovWatch - RFP Cliches Debunked: What Government Buyers...
 
Managing Planning and Development of Citie- 26-2-24.docx
Managing Planning and  Development of  Citie-  26-2-24.docxManaging Planning and  Development of  Citie-  26-2-24.docx
Managing Planning and Development of Citie- 26-2-24.docx
 
National Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO QuezonNational Women's Month Celebration for PENRO Quezon
National Women's Month Celebration for PENRO Quezon
 
2024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 172024: The FAR, Federal Acquisition Regulations - Part 17
2024: The FAR, Federal Acquisition Regulations - Part 17
 
Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024Water and peace go hand-in hand. World Water Day 2024
Water and peace go hand-in hand. World Water Day 2024
 
War in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USAWar in Ukraine and problematics of the Ukrainian refugees in USA
War in Ukraine and problematics of the Ukrainian refugees in USA
 
PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.PPT Item # 5-6 218 Canyon Drive replat prop.
PPT Item # 5-6 218 Canyon Drive replat prop.
 
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...
The Federal Perspective on Coverage of Medications to Treat Obesity: Consider...
 
What Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the GrandparentsWhat Teenagers Have to Say about the Grandparents
What Teenagers Have to Say about the Grandparents
 
2024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 162024: The FAR, Federal Acquisition Regulations - Part 16
2024: The FAR, Federal Acquisition Regulations - Part 16
 
Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.Yes!? We can end TB - World Tuberculosis Day 2024.
Yes!? We can end TB - World Tuberculosis Day 2024.
 
Parents can give charity ideas for kids.
Parents can give charity ideas for kids.Parents can give charity ideas for kids.
Parents can give charity ideas for kids.
 
Water for Prosperity and peace - United Nations World Water Development Repo...
Water for Prosperity and peace -  United Nations World Water Development Repo...Water for Prosperity and peace -  United Nations World Water Development Repo...
Water for Prosperity and peace - United Nations World Water Development Repo...
 
World Happiness Report 2024- Full Report
World Happiness Report 2024- Full ReportWorld Happiness Report 2024- Full Report
World Happiness Report 2024- Full Report
 

Introduction to Nonprofit Strategic Restructuring

  • 1. Introduction to Nonprofit Strategic Restructuring Presenter: Mary Anderson, Senior Managing Consultant, M+S Consulting
  • 2. The three main points of today’s webinar 1. An explanation of nonprofit strategic re- structuring and when can it be a beneficial strategy 2. The specific examples of restructuring models and pros and cons of each 3. How to engage the board in the idea of exploring a restructuring strategy
  • 3. What are the environmental drivers for mergers and partnerships today? How many can you name?
  • 4. Key Drivers For Restructuring 1. Economic forces like the recession 2. Pressure to raise unrestricted funding for back office expenses 3. Government moving to more managed-care contracting 4. The shift to measuring results in nonprofit organizations 5. More competition from nonprofits and for-profits 6. The impending leadership gap in management 7. The political push for smaller government 8. Complexity of social issues that clients bring to the table 9. The Affordable Care Act
  • 5. 5 What do we mean by Collaboration? Range Of Nonprofit Collaboration Models Degree Of Corporate Integration Which Can Be Required to Complete the Collaboration STRATEGIC RE-STRUCTURING SPECTRUM • Membership association • Advocacy coalition referral agreement • Partnership • Program or Business Shared Service Alliance • Joint Venture • Parent/Subsidiary • Merger• r 0% 50% 100% • Management Service Organization • Alliance • Co-Operative Network
  • 6. The Definition of Restructuring A strategy that consolidates corporate or program structure in a variety of ways, all or in part, together with one or more nonprofit organizations, in order to advance mission.
  • 7. Benefits Nonprofits Seek from Re-Structuring • Expand geographic reach or improve market position • Spread administrative expenses to become more efficient • Create a continuum of services for clients • Increase service offerings • Improve their public profile or create greater political influence • Enlarge the staff and achieve greater specialization of back office and program services • Collaborate and share knowledge and training for staff and clients • Engage in more strategic fundraising, collaborate on campaigns, and share fundraising resources • Share the risk and reward of entrepreneurial activities • Strengthen staff, board, and volunteer leadership
  • 9. Types of Structures • Joint Ventures • Management Service Organizations • Alliances • Parent/Subsidiary • Mergers 9
  • 10. Joint Venture Partnership Governed by a 501(c)(3) Board of Directors Central Square Theatre 501 (c)3 nonprofit corporation Underground Railway Theater The Nora Theatre Company Board of Directors Plus Board Chairs
  • 11. Tennessee Aquarium Joint Venture Partnership Administrative Consolidation with a Lead Partner Creative Discovery Museum Hunter Museum of American Art Contract Independent Institutions with their own Boards L E A D PA RT N E R
  • 12. Management Service Organizations 501(c)(3) Nonprofit Corporation Finance General Accounting Budgeting support Management of payables and receivables Audit support 990 and other government filings MACC Commonwealth 501(c)3 with 10 Autonomous Members Human Resources Compensation, benefits, Time tracking, Leave administration, Staffing support, Records management, Performance review systems Information Technology Infrastructure management, Helpdesk, Client data system, Wide-area networking and Internet access Voice-over-IP (telephony)
  • 13. | 13 Shared Service Alliance Happy Acres Day Care NETWORK HUB Shared Staff Mary’s Family Child Care Home Tender Tots Pre School Lu’s After-School Program Green Hills Child Care Center Newberry Nursery School
  • 15. Liberty Lutheran Services, Southeast PA $26MM administrative consolidation/merger, with separate corporate structure Nonprofit 1 Nonprofit 2 Nonprofit 3 Nonprofit 4 Nonprofit 5 Board Board Board Board Board Umbrella 501(c)3 New Board Representative from each member organization Executive Team lead by CEO VP VP VP VP VP
  • 17. Difficulties of Restructuring Models • Unclear chain of command • Require Ongoing time to process decisions • Inequitable distribution of duties • Lack of clarity around roles • Require Middle managers to do double duty • Staff turnover
  • 18. 18 Strengths of Restructuring Models • May be easily disassembled • Can allow for autonomy • Improve market position • Offer legal protection • Share cost and risk • Create economies of scale • Create continuum of services • Improve quality of back office services
  • 19. Engaging the Board • How to engage the board in the idea of exploring a restructuring strategy?  Create a Strategic Planning Committee  Review your strengths, weaknesses, opportunities, and threats  Review all possible strategies to address your weaknesses and threats, including strategic re- structuring strategies  Determine which strategies best leverage your strengths and opportunities
  • 20. Questions and Answers Mary E. Anderson mary@missionplusstrategy.com
  • 21. Coming Up: • Selecting a Partner and Negotiating a Letter of Intent • The Roles of Staff and Board Members in this Process Part II: September 25th, Noon, CST Part II: October 9th, Noon, CST