There are number of factors influencing the steady rise in mergers among Not for Profits. A key factor is the change in regulation and funder expectation, including:
• the move to compliance phase by the ACNC;
• the roll-out of the NDIS, with its client/participant focus; and
• the increasing preference of government departments to fund larger, more effective, and more efficient operations
Although Not for Profits need to carefully consider the financial factors associated with a merger, they should also consider whether the merger will ultimately benefit their stakeholders, which requires a different lense to be applied to pre-merger considerations.