where can I learn about non-profit restructuring?
October 23, 2023 6:07 PM Subscribe
I'm going to try to keep this vague/nonidentifying, but hopefully clear enough to put me on the right track to find what I'm looking for. For the past year, I have been involved as a volunteer with a non-profit arts agency in my city that is facing the prospect of either folding or restructuring. It breaks my heart that this important cultural piece of beauty and magic might end and I'd like to know that if it does, I will have done whatever I can to preserve it.
I don't know anything about what restructuring looks like in the non-profit sector though and I don't even know where to begin learning/reading about the subject. I understand that there might not be a playbook for guidance on how this will or could possibly unfold, but on the off chance that one exists, can someone point me to it?
I think I'd like to find information relevant to any non-profit group operating in today's climate of dwindling funds (corporate sponsorship, government grants and individual donations have all taken a hit over the past few years). Prior to covid, we had a healthy reserve fund, but the money is almost all gone and it's to the point where continuing to operate using our current model would be financially irresponsible. To be clear, the financial difficulty stems from lack of donations from individuals attending our event and reduced grant funding. There hasn't been any mismanagement of funds or wild and unnecessary spending, no overpaid employees. Most of the people involved are volunteers.
Are there case studies about other arts groups that I could read about or even general books or articles on 'here's how non-profits work and here's what to do when the resources aren't there'? I had planned on devoting a significant amount of my time this year to this agency and started taking a couple of courses on grant writing from a nearby university in anticipation of helping with fundraising this year on top of my coordinator role that I held last year. I'll continue with those courses because they are interesting and the information might be useful someday, but I'm not sure the information will be of much use this year.
I feel like the information that I'm looking for is the kind that is best gained through years of experience of working with non-profits, but the non-profits I've volunteered with previously have operated on government-based funding models and I've never been involved in fundraising outside of school events for my kids, so I appreciate anything the hive mind can suggest. This is a beloved arts event that began as a grassroots initiative and has managed to preserve a strong unique identity.
I am aware of a few possible paths forward: 1) find another group to take over our work, presumably one with access to more money and volunteers to run things; 2) change our event to a ticketed one (makes us less accessible) or find a major corporate sponsor (highly unlikely); 3) explore different ways to host our main event (sorry for being vague with this one, but we're looking at everything at this point). I personally favoured this option but it seems to be the least viable at this point according to the board.
I don't know anything about what restructuring looks like in the non-profit sector though and I don't even know where to begin learning/reading about the subject. I understand that there might not be a playbook for guidance on how this will or could possibly unfold, but on the off chance that one exists, can someone point me to it?
I think I'd like to find information relevant to any non-profit group operating in today's climate of dwindling funds (corporate sponsorship, government grants and individual donations have all taken a hit over the past few years). Prior to covid, we had a healthy reserve fund, but the money is almost all gone and it's to the point where continuing to operate using our current model would be financially irresponsible. To be clear, the financial difficulty stems from lack of donations from individuals attending our event and reduced grant funding. There hasn't been any mismanagement of funds or wild and unnecessary spending, no overpaid employees. Most of the people involved are volunteers.
Are there case studies about other arts groups that I could read about or even general books or articles on 'here's how non-profits work and here's what to do when the resources aren't there'? I had planned on devoting a significant amount of my time this year to this agency and started taking a couple of courses on grant writing from a nearby university in anticipation of helping with fundraising this year on top of my coordinator role that I held last year. I'll continue with those courses because they are interesting and the information might be useful someday, but I'm not sure the information will be of much use this year.
I feel like the information that I'm looking for is the kind that is best gained through years of experience of working with non-profits, but the non-profits I've volunteered with previously have operated on government-based funding models and I've never been involved in fundraising outside of school events for my kids, so I appreciate anything the hive mind can suggest. This is a beloved arts event that began as a grassroots initiative and has managed to preserve a strong unique identity.
I am aware of a few possible paths forward: 1) find another group to take over our work, presumably one with access to more money and volunteers to run things; 2) change our event to a ticketed one (makes us less accessible) or find a major corporate sponsor (highly unlikely); 3) explore different ways to host our main event (sorry for being vague with this one, but we're looking at everything at this point). I personally favoured this option but it seems to be the least viable at this point according to the board.
Best answer: Without knowing more about your organization,
Restructuring Nonprofit Organizations: Mergers, Acquisitions, Consolidations, Partnerships and Separations overview (American Alliance of Museums)
Nonprofit Mergers at NEO Law's nonprofit law blog: Part I: Basic Legal Considerations, Part 2: Step-by-Step; Motivations, Tips, Integrated Governance Models (2020/2021)
2021's Nonprofit Mergers and Acquisitions: Not Just an Escape Plan
Merger and Acquisition Considerations for Nonprofits (2022 accounting & business advisory firm blog post)
A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding not-for-profit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier. (2021 accounting & business advisory firm blog post) (IRS procedure document)
Mergers, Joint Ventures & Partnerships, types of nonprofit collaboration
Mergers and Acquisitions Between Nonprofit Organizations (Nebraska primer)
Specific organizations:
The Lancaster Museum of Art and the Demuth Museum consolidation (Pennsylvania), in 2014
The [2010] merger of Oakland East Bay Symphony, Oakland Youth Orchestra, and the Oakland Symphony Chorus "shows how a merger to increase efficiencies led to a focus on community impact." (2014 report)
2016's "Report from the Metropolitan Chicago Nonprofit Merger Research Project": "analyzes 25 nonprofit mergers that took place in the Chicago metro area between 2004 and 2014 and highlights the diverse path these organizations took to arrive at positive outcomes" and an article about this report
Organizations stayed intact, joined forces: The history of the Coalition of Small Arts NYC (CoSA NYC), formed in 2020. "Individually, the organizations in CoSA NYC are devoted to collaborative relationships with artists and publics, and recognize that the value of smallness means placing the needs of communities ahead of institutional needs. [...] In its first phase, CoSA NYC raised a total of $1,600,000 that was shared equally among thirty-two organizations."
posted by Iris Gambol at 1:03 PM on October 24, 2023 [1 favorite]
Restructuring Nonprofit Organizations: Mergers, Acquisitions, Consolidations, Partnerships and Separations overview (American Alliance of Museums)
Nonprofit Mergers at NEO Law's nonprofit law blog: Part I: Basic Legal Considerations, Part 2: Step-by-Step; Motivations, Tips, Integrated Governance Models (2020/2021)
2021's Nonprofit Mergers and Acquisitions: Not Just an Escape Plan
Merger and Acquisition Considerations for Nonprofits (2022 accounting & business advisory firm blog post)
A few years ago, IRS Revenue Procedure 2018-15 changed the rules regarding not-for-profit restructuring. If you’ve participated in a restructuring in the past, you’ll be relieved to know that in many cases it’s now easier. (2021 accounting & business advisory firm blog post) (IRS procedure document)
Mergers, Joint Ventures & Partnerships, types of nonprofit collaboration
Mergers and Acquisitions Between Nonprofit Organizations (Nebraska primer)
Specific organizations:
The Lancaster Museum of Art and the Demuth Museum consolidation (Pennsylvania), in 2014
The [2010] merger of Oakland East Bay Symphony, Oakland Youth Orchestra, and the Oakland Symphony Chorus "shows how a merger to increase efficiencies led to a focus on community impact." (2014 report)
2016's "Report from the Metropolitan Chicago Nonprofit Merger Research Project": "analyzes 25 nonprofit mergers that took place in the Chicago metro area between 2004 and 2014 and highlights the diverse path these organizations took to arrive at positive outcomes" and an article about this report
Organizations stayed intact, joined forces: The history of the Coalition of Small Arts NYC (CoSA NYC), formed in 2020. "Individually, the organizations in CoSA NYC are devoted to collaborative relationships with artists and publics, and recognize that the value of smallness means placing the needs of communities ahead of institutional needs. [...] In its first phase, CoSA NYC raised a total of $1,600,000 that was shared equally among thirty-two organizations."
posted by Iris Gambol at 1:03 PM on October 24, 2023 [1 favorite]
Best answer: Check out;
https://boardsource.org/research-critical-issues/nonprofit-sector-research/
They have been around a long time and have a large amount of valuable free material available on their website.
posted by leafwoman at 5:18 PM on October 24, 2023
https://boardsource.org/research-critical-issues/nonprofit-sector-research/
They have been around a long time and have a large amount of valuable free material available on their website.
posted by leafwoman at 5:18 PM on October 24, 2023
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posted by Toddles at 7:04 PM on October 23, 2023 [1 favorite]