With over 166,000[i] charities in the UK and new registrations running at around 400 a month, I can’t be the only person to wonder if there shouldn’t be more collaboration and partnership. A new Good Governance[ii] draft code recommends that “trustees consider partnership working, merger or dissolution if others are seen to be fulfilling similar purposes more effectively” (s.1.4.2). Whilst there were many more partnerships and countless collaborations, in the year to 30th April 2016[iii] only 54 mergers took place. Especially when resources are tight working with others is something to consider as a way of enhancing service provision. Moreover, I find it deeply saddening when charities go to the wall because they were unable or unwilling to work with others or didn’t start the process until it was too late.
Making significant changes to a charity are as not easy as an outsider might think. In addition to more obvious strategic, operational, financial and legal considerations, charities are often loaded with an emotional legacy that makes such change difficult to entertain. They may have been established in response to personal tragedy or a corporate sense of mission, which no one would want to decry – making the world a better place is the generic charity mission statement. Then there are concerns about job security, about unmet need, about ‘letting people down’… But sometimes the organisation itself takes on a life of its own and can begin to dictate the future.
The challenge is not to allow an (otherwise positive) sense of attachment to cloud what should always be the primary focus – the beneficiaries. The cause should be considered way ahead of the needs of the delivery vehicle.
I’ve had the privilege of working on some mergers, helping to form partnerships, and negotiating takeovers – they are rarely simple. Some time ago I was charged with dissolving the charity that I had spent 8 hard years establishing – that was emotionally tough!
In this emotionally charged atmosphere, sometimes with the additional pressures of funding difficulties, the following are some considerations that I’ve found to be important:
- Trust – when any of us is considering working with others trust is vital. We are taking a risk with the future and need to know that is in safe hands. Having enough ‘courtship’ time to build this trust is often a good start.
- Time - whilst it is good to keep the process moving, undue haste or unnecessary deadlines can mean insufficient time is given to getting to know each other, working through the detail, reflecting, and building trust. When organisations are ‘pushed’ into making a decision because they ‘have’ to, difficulties may soon follow.
- Language can often play a big role. As people try to find common ground, there is a potential pitfall of assuming that we all understand words the same way. Moreover, it can be disastrous if one or other party discovers, some way along the journey, that they have a different understanding, and that hard-built trust rapidly dissolves.
- Starting talking when you’re strong. The best partnerships are built when all parties are strong. This doesn’t mean there has to be equality, but in my experience the best arrangements are forged when either party can walk away if they need to.
- Honesty and transparency - diplomacy and tact should be to the fore but this shouldn’t be an excuse for hiding the truth. If it’s a takeover, don’t call it a partnership – sooner or later the truth will out and any sniff of deception can see the whole process collapse. An early and mutual exploration of motivations and options is a good place to start.
- Having objective support and constructive challenge can be of real help - often someone completely external to the organisation/s and who has no vested interest can help separate the emotion from the pragmatic - facilitating conversations, providing reassurance, clarifying, carrying out some of the leg work, advising, progress chasing.
Working with others is not for everyone and not always straightforward. But enhanced and more efficient service provision that profits the beneficiaries can often make it an important consideration and something that should be weighed up on a regular basis.
If you, or someone you know, would like to discuss help with developing a partnership or a collaboration, or even a dissolution, please get in touch.
[i] UK Government Official Statistics: 166,311 at 30 September 2016
[ii] http://www.governancecode.org/ Out for consultation until 3 Feb 2017,
[iii] “The Good Merger Index” – Eastside Primetimers