In this episode of The First Day from The Fund Raising School, Bill Stanczykiewicz, Ed.D., welcomes back Phil Purcell, Director of Planned Giving for the Central Territory of The Salvation Army, a veteran faculty member at The Fund Raising School, and nationally recognized expert on planned giving, nonprofit law, and charitable organizations. Phil joins the conversation fresh from leadership roles with the American Bar Association’s charitable giving and organizations work, where he helps advance legal understanding across the nonprofit sector. Together, Bill and Phil tackle a topic that gets plenty of conference-room chatter but not always enough action: nonprofit collaboration, partnerships, and mergers. As Bill notes, everyone loves to say, “Those organizations should work together,” but actually making it happen can feel like trying to assemble IKEA furniture during a thunderstorm.

The conversation begins with why nonprofits pursue partnerships or mergers in the first place. Phil explains that financial pressure is often one driver, especially when an organization has strong programs but a fragile bottom line. Grassroots organizations may also seek fiscal sponsorships or other partnerships because they have mission energy but not yet the fundraising base to sustain themselves. Other collaborations emerge from strategic opportunity, such as organizations with different strengths coming together to address a complex community challenge, or 501(c)(3) and 501(c)(4) organizations coordinating around advocacy and public policy. Bill adds that donors can be powerful catalysts, sometimes asking why two organizations serving similar missions, neighborhoods, or populations are operating separately when a combined effort might produce greater impact.

Bill and Phil then move into the human side of mergers, where the spreadsheets meet the feelings, and sometimes the feelings bring snacks and a lawyer. Phil emphasizes that while boards ultimately decide whether a merger or partnership moves forward, the idea may come from staff, board members, volunteers, thought leaders, or major donors. Still, staff may understandably feel anxious about redundancy, job security, and organizational change. Phil stresses that mission alignment and culture must be addressed before the legal documents arrive on the scene wearing sensible shoes. Work styles, leadership expectations, office norms, governance habits, and organizational identity all matter. Outside consultants can help by conducting interviews, assessing cultural fit, facilitating strategic conversations, and helping leaders determine whether the whole really can become greater than the sum of its parts.

The episode closes with Phil outlining the legal and structural issues nonprofits must consider once collaboration becomes serious. He advises organizations to start by understanding exactly who they are legally: their true legal name, articles of incorporation, bylaws, tax-exempt status, state and federal standing, and any unusual provisions that may have been forgotten in the filing cabinet of history. From there, a merger may require a plan of merger, articles of merger, decisions about which entity survives, and attention to state law differences. Phil also explains alternatives to full mergers, including fiscal sponsorships and supporting organization structures, each with its own responsibilities, agreements, and governance questions. Above all, he reminds listeners not to overlook donor intent, restricted gifts, leadership structure, and stakeholder trust. The takeaway is clear: nonprofit collaboration is complicated, emotional, legal, financial, and cultural; but when it strengthens mission, it can be well worth the work.