Merging Forward: The “Why” and “How” of Association Mergers
501c6 associations often serve the same members at a local, regional, and national level. This can lead to competition among the associations, as they vie for members, resources, and relevance. This competition can be harmful and confusing to both the members and the associations themselves. As a result, our association consultants are seeing many local, state, regional, and national associations consider merging as a way to address workforce issues, member confusion, and expanding value to members.
There are several reasons why 501c6 associations serving the same members at a local, regional, or national level should merge:
Reduce competition: Merging can help to reduce competition among associations, which can lead to a number of benefits, including:
Lower costs: Associations can save money by combining administrative and operational functions.
More efficient use of member resources: Associations can use their resources more efficiently when they are not competing with each other.
Stronger advocacy: Associations can have a stronger voice in advocating for their members when they are united.
Improve services: Merging can also help associations to improve the services they provide to their members. For example, merged associations can offer a wider range of services, as well as more specialized services that would not be feasible for a single association to offer. With larger resources, they can also address costs associated with scaling and operational and service delivery improvements.
Increase membership: Merged associations can also attract more members, as they can offer a more comprehensive and valuable set of services.
There are a number of steps that 501c6 associations should follow in the merger process:
Explore the feasibility of a merger: The first step is to explore the feasibility of a merger. This includes assessing the potential benefits and drawbacks of a merger, as well as the challenges that may be involved while developing relationships between both parties.
Develop a merger plan: Once it has been determined that a merger is feasible, the associations should develop a merger plan. This plan should outline the strategic rationale of the merger, the timeline for the merger, and the steps that will be taken to implement the merger.
Obtain approval from members: The merger plan must be approved by the members of both associations. This may involve a vote of the members, or it may involve a process of consultation and feedback from the members.
Implement the merger: Once the merger has been approved by the members, the associations can begin to implement the merger to achieve the goals and strategic rationale for embarking on the journey.
Merging can be a beneficial step for 501c6 associations that serve the same or similar members at a local, state, regional, or national level. Merging can help to reduce competition, improve services, and increase membership. If you are considering merging your 501c6 association with another association, there are a number of resources available to help you through the process.