Charity Mergers Process: How To Merge Your Charity Effectively
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This flow chart covers the complexities of merging charities and what it entails. For information on how to merge a charity contact IBB Law's specialist charity solicitors: http://www.ibblaw.co.uk/services/charities
Transcript of Charity Mergers Process: How To Merge Your Charity Effectively
Charity mergers: at a glance
08456 381381ibblaw.co.uk
© IBB Solicitors, 2013This flowchart sets out a general summary of the process of a charity merger.
INITIAL DISCUSSIONS• Feasibility Study
• Confidentiality Agreement • Information Sharing
BOARD DECISIONConsider legal duties in context of merger and reviewing all relevant
information to decide whether merger is in the best interests
DESIGNING THE LEGAL STRUCTURE
• Choosing the most apropriate merger Vehicle
• Board Structure• Governance Issues
CONSULTING STAKEHOLDERS• Members• Funders
• Service Users• Employees
MERGER AGREEMENT• Negotiate terms of the merger
IN-PRINCIPLE DECISION• Head of Terms
• Establishing a Steering Group• Agreeing a Budget
CHARITABLE PURPOSESReviewing compatibility of
the Objects
PREPARING THE BUSINESS PLAN AND CASE FOR MERGER
OBTAIN ANY NECESSARY CONSENTS
• Regulation• Charity Commission
• OSCR• CQC, HCA, FSA etc
• Members• Funders
GOVERNANCE: • Manage appointments and
resignations• Make changes to governing
documents as required
HR ISSUESTUPE, redundancies and
reorganisation
PENSIONSDefined benefit schemes
PROPERTYContinuing obligations, break
clauses, dilapidations liabilities
IDENTIFY REGULATORY ISSUES
Charity Commission, OSCR, CQC, HMRC, HCA
GRANT FUNDINGClawback provisions, Change of
control
CONTRACTS• Assessing the liabilities
• Assignment/novation
MERGER DATEAgreement takes effect
Contact Contractors
Contact Stakeholders
Contact Service Users
Contact Insurers
DUE DILIGENCE• Financial
• Legal• Operational
