Meagan Truong, left, and Frannie Reilly, right, of McNees Wallace & Nurick. Courtesy photos
Merging business entities—whether by a traditional merger or when one entity purchases the stock or assets of the other—is always a complicated legal transaction, but when one or more nonprofits are involved, the process is even more difficult.
Nonprofits and charitable entities require greater oversight of their affairs due to their status, which is granted by government agencies. There is an important, growing trend among nonprofit organizations to merge in order to conserve resources such as board members, grant funding and donors. Conservation of these resources will help to sustain the programs and services provided by nonprofit organizations for future generations. Below are additional considerations when merging nonprofit organizations.
