Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector - in The Philanthropist

May 06, 2009 | By: .(JavaScript must be enabled to view this email address) Mark Blumberg
Topics: Canadian Charity Law, Mergers

Here is my recent article Mergers and Amalgamations within the Canadian Non-Profit and Charity Sector

Here is the abstract of the article:

Mergers and Amalgamations in the Canadian Nonprofit and Charitable Sector
Mark Blumberg

Difficult times and an increasingly competitive charitable sector are forcing some nonprofits and charities to consider organizational changes and collaborations. For some a merger, the most integrated form of cooperation, is the most appropriate option. Unfortunately, many non-profit mergers are handled poorly and the costs of the merger are far greater than expected; the benefits far less than expected; and the dislocation and protracted distraction from the organizations’ mission far exceed any value created by the merger. This article discusses in a straightforward and practical manner some of the many issues that arise when Canadian nonprofit organizations and charities wish to merge. It also examines: the many reasons to consider merger; problems and pitfalls of merger; red flags and tips for managing a merger; likely opponents of merger; issues and steps in completing a successful merger; the mechanics of merger for Ontario and federal non-share capital corporations; as well as the views of the Charities Directorate and the Ontario Public Guardian and Trustee on mergers.

Résumé : Les temps durs et un secteur caritatif de plus en plus compétitif obligent certains organismes sans but lucratif et de bienfaisance à envisager des changements et des collaborations organisationnels. Pour certains, la fusion – qui est la plus intégrée des formes de coopération – est l’option la plus appropriée. Malheureusement, plusieurs fusions dans le secteur non lucratif sont mal gérées et leurs coûts sont souvent au-delà des attentes, les bénéfices ne sont pas à la hauteur des espoirs, et les bouleversements et distractions par rapport à la mission de l’organisme dépassent de loin toute valeur engendrée par la fusion. Cet article discute de manière directe et pratique certaines des questions soulevées quand les organismes sans but lucratif et de bienfaisance songent à fusionner. Il examine : les nombreuses raisons de fusionner; les problèmes relatifs aux fusions; des indices et avertissements pour gérer une fusion; les opposants probables aux fusions; les étapes à suivre pour réussir une fusion; le processus de fusion dans le cas de sociétés sans capital-actions ontariennes et fédérales; et les points de vue sur les fusions de la Direction des organismes de bienfaisance et du Bureau du Tuteur et curateur public en Ontario.


Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario.  He can be contacted at or at 416-361-1982. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit http://www.canadiancharitylaw.ca or http://www.globalphilanthropy.ca

This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.

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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.

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416.361.1982
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