The Globe and Mail published an article titled "Canadian cancer charities merge amid crowded donation field" which discusses the recent merger between Colorectal Cancer Association of Canada and Colon Cancer Canada. Although this has been compared to the recent merger of the Canadian Cancer Society and the Canadian Breast Cancer Foundation, the scale of this merger is much smaller.
The Globe and Mail notes:
The amalgamation of the Colorectal Cancer Association of Canada and Colon Cancer Canada is being driven by a desire to pool resources, eliminate duplication and bolster support for patients, rather than by financial constraints, said Barry Stein, president and chief executive of the merged group, now called Colorectal Cancer Canada. The move will also help eliminate donor confusion and competition for dollars in this cancer field." ...
The most recently available financial statements show that donations had declined for the two charities, affecting their overall revenue. In 2015, Colon Cancer Canada's revenue was nearly $1.1-million, dropping from $1.5-million the year before. The Colorectal Cancer Association of Canada, meanwhile, brought in $1-million in revenue in 2015, compared with nearly $1.3-million in 2014.
Non-profit mergers can be succesful if carefully planned with appropriate assistance. Here is a directory of resources relating to non-profit mergers and also "CPA Canada’s 20 Questions Directors of Not-for-Profit Organizations Should Ask about Mergers". When the non-profits are registered charities the number of regulatory issues escalates. It is important to involve a lawyer knowledgeable in these regulatory issues to increase the likelihood of an efficient process and a succesful outcome.
Do you require legal advice with respect to Canadian or Ontario non-profits or charities?
Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.