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Commentary

27 Merger of charities

CHARITIES AND CHARITABLE GIVING vol 6(2)
CHARITIES AND CHARITABLE GIVING vol 6(2) | Commentary

27 Merger of charities

CHARITIES AND CHARITABLE GIVING vol 6(2) | Commentary

27 Merger of charities

It is not uncommon for a charity, however constituted, to decide in the course of administration to merge with another charity with similar objects. This can lead to greater efficiency through the synergy that a merger brings, and to less confusion for potential donors. On the other hand, the process can give rise to serious problems if not properly planned and executed1.

Where the merger is effected by scheme, the merger is usually referred to as ‘amalgamation’ and the single charity resulting from the merger retains the identity of the original charities: the change is purely administrative, not substantive2. Where the merger is between two or more charitable incorporated organisations (CIOs) it is referred to as either ‘amalgamation’ or ‘transfer of

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