On 5th June, New Philanthropy Capital (NPC) published a report on charity mergers, adding fuel to the fire of what was already one of the voluntary sector’s hottest topics. There are 171,000 charities registered in England and Wales. Are there too many trying to do the same thing, or are beneficiaries gaining from the competition, choice and specialist knowledge that a proliferation of small charities provide?
NPC conclude that there are too many charities in some areas creating a waste of resources. They argue that mergers can mean more and better-focussed funds for service users. Their suggested solution is to promise to regularly consider the possibility of merger or collaboration. "Without this," the report says, "trustees may be failing in their duty to the vulnerable people that their charities exist to serve."
Adam Sampson was Chief Executive of Shelter until April this year. He joined Shelter shortly after the collapse of merger talks with Crisis. There is now a widespread recognition that charities can be better than the state at meeting the needs of the vulnerable because of their strong connection to the community. Sampson believes this closeness can be threatened by growth and consolidation, concerned that “…as charities grow, the distance between the beneficiary and the management grows with it.”
The re-branding of the £150m turnover "super-charity"’ that is the outcome of the merger between Age Concern and Help the Aged is underway. No doubt the several Pilotlight partner charities who are considering partnerships or mergers will be watching with interest. Meanwhile, the Pilotlight team will be thinking of ways to help our charities to make the best decision for their beneficiaries — and if that is merger, to help them make it a success. If you have ideas on where we can get funding to develop this project, or would like to be involved, please contact Senior Project Manager Craig Carey at [email protected].