Charity Governance

Charity mergers: finding the right match

Of interest to those involved in charity governance.

Introduction

The Charity Governance Code recommends that trustees ‘consider the benefits and risks of partnership working, merger or dissolution if other organisations are fulfilling similar charitable purposes more effectively and/or the charity’s viability is uncertain’.

Purpose of this guidance

This guidance note provides an overview of those factors that should be considered by trustees and senior managers when thinking about a merger. This guidance covers the legislative issues around charities regulated by the Charity Commission in England and Wales.

This publication highlights some of the aspects of a potential merger partner that should be examined and which could help provide basic information to ascertain the compatibility of the two or more organisations at a fundamental level. It does not constitute legal advice. Professional input from legal and financial experts is advisable to ensure the proposed actions do not fall foul of the legal and regulatory framework within which the organisation operates.

This document includes:

  • Who to merge with
  • Governing document
  • Financial accounts       
  • Assets and liabilities
  • Organisational culture        
  • Reasoning                                         

  • Making an approach             

  • Further reading    

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