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Mergers between charities are being talked about more often, but the conversation still tends to centre on financial distress. That perspective can be limiting. When approached at the right time and for the right reasons, mergers aren’t a sign of failure, they’re a strategic route to greater impact and sustainability.

Although there’s growing openness to collaboration, duplication remains surprisingly common across the sector. When two organisations are working towards similar aims or competing for the same funding, it’s worth asking whether more could be achieved by working together. The earlier those conversations happen, the better the chances of building a meaningful and equitable partnership.

Too often, merger discussions begin only when an organisation is already under pressure. At that stage, the options are narrower, and the process becomes more complex. In our experience, it’s not the technical issues, like property or pension arrangements, that tend to derail mergers, but concerns about identity, independence and legacy. These are valid considerations. Trustees are rightly proud of their charities and deeply invested in their success, but sometimes that pride can make it harder to recognise when a different approach might serve your mission better.

A few years ago, I supported two neighbouring charities as they explored the idea of merging. They already shared back-office functions, their missions aligned closely, and the benefits were clear. Despite this, the merger didn’t go ahead. In the end, a small number of trustees felt more comfortable continuing independently, even though the long-term case for coming together was strong.

This isn’t unusual. When merger talks happen too late, the result can be a rescue rather than a true partnership. Charities may have already used up reserves and exhausted staff capacity just to keep going, which limits the potential of any future collaboration.

Mergers won’t always be the right answer, but they should be one of the options you consider during strategic planning, not just a fallback when things go wrong. Starting those conversations early, with openness and clarity of purpose, gives charities the best chance of making informed, balanced decisions about their future.

Considering a merger? Here are some key early steps:

1. Explore the process and timing: Think about the right sequencing: from initial conversations and early assessments to formal due diligence and final sign-off.
2. Critique the business case: What are the intended benefits? Greater reach, cost savings, stronger systems? How realistic are they?
3. Undertake financial due diligence: Look closely at each charity’s assets, liabilities (such as pensions or property), and funding restrictions.
4. Consider future structures and tax implications: What governance model will best support the merged organisation? Are there VAT or tax considerations to work through?
5. Engage specialist advisers early: Merge smoothly by bringing together financial, legal and compliance advice in a coordinated way.

If these questions resonate, it could be a good time to explore your options. At Sayer Vincent, we’ve supported many charities through successful mergers, helping them assess risks, understand their position, and plan confidently for the future. If you’d like to talk through what that could look like for your organisation, we’d be happy to have a conversation.