How should charity trustees think about merger?

In the last of our 2026 events for trustees supported by The Clothworkers’ Company, Elly de Decker joined Alex Hayes, NPC’s Director of Philanthropy, to discuss the realities of charity mergers, drawing on their hands-on experience as CEO and trustee of recently merged organisations. Here we share some of their key learnings. 

Mergers are a key strategic option, not a last resort

Elly described how mergers are often only considered when an organisation reaches a crisis or “burning platform”. At that point, what is described as a merger may be closer to a bailout, with limited time and few choices available. 

This overlooks the positive value a merger can offer. As well as potential cost efficiencies and more resilient infrastructure, combining organisations can create opportunities to increase income, extend reach and achieve greater impact.  

Indeed, while mergers will not be right for every organisation, they are part of a continuum of collaboration which can provide real benefits in terms of sustainability and impact. Considering a merger earlier gives leaders and trustees more time to assess its potential benefits, understand the risks and make a deliberate choice, rather than acting under pressure. 

Despite this, mergers remain relatively rare. The most recent Good Merger Index recorded 84 mergers over a year, out of England and Wales’ circa 170,000 registered charities. This suggests trustees may not be making enough use of mergers as a strategic tool. 

Be clear about what you want from a merger and what you bring

We heard how a successful partner search starts with reflection and clarity. What does your organisation want to achieve through a merger? What are your red lines? And what value do you bring to a potential partner? 

External support can be valuable. Elly described the emotional weight of merging, and how an independent adviser can help trustees and senior leaders step back, establish their priorities, and develop a realistic list of potential partners.  

In an example shared at the event, possible partners for merger were approached with a pitch document and invited to submit expressions of interest. This helped identify a preferred candidate: an organisation that could clearly explain how the merger would strengthen its own work. The key decision-making question was whether bringing the organisations together would allow them to achieve more. 

It will take time

A merger is unlikely to be straightforward. It is time-consuming, involves compromise and may be one of the most significant decisions trustees ever make. 

Both organisations need time to understand each other in detail. Due diligence must go into sufficient depth for trustees to understand what they are taking on and to avoid unexpected issues later. Terms or ways of working can differ significantly between organisations, so assumptions need to be tested through open and detailed conversations.  

Intensive engagement from the board during this process is likely to be needed. In another merger example shared during the event, a smaller group of delegated trustees led discussions around the merger, meeting regularly, while ensuring the full board remained informed and retained ownership of the final decision.  

Meanwhile, business as usual cannot be neglected. Each organisation’s position needs to remain on track, to avoid surprises down the line. This means keeping a focus on fundraising or income generation, as well as staff retention. Clear communication is therefore essential to bring colleagues along. 

We need to reframe how we think about mergers

Our speakers discussed how too often in the sector merger is seen as evidence of failure. Instead, we should see them as one possible route to protecting assets, strengthening organisations and safeguarding impact. 

Mergers bring risks and compromises, but they can also be a positive choice. In a difficult funding environment, more trustees should explore them before a crisis hits.