The Hartford Business Journal recently ran an article titled “Financial Cloud Pushing Nonprofits to Merge.” In the article, reporter Gregory Seay explored the pressure on Connecticut nonprofits to merge as a possible solution to financial stress as donations and government funding decline in the face of rising needs. Experts caution that merging operations won’t necessarily cut overall costs, and may even increase costs in the short run.
From the conflict management perspective, it’s clear that the potential for damage to donor bases, employee morale, volunteer enthusiasm, and effective delivery of services is great when two organizations merge.
Clear and open communication can prevent some conflicts altogether and reduce the impact of those that do develop.
