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Comment on William M. Rohe and Rachel G. Bratt's “Failures, downsizings, and mergers among community development corporations”: Merger does not mean failure

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  • David Piana

Abstract

In response to the article by Rohe and Bratt in which mergers among community development corporations (CDCs) were viewed as one type of response to organizational “failures,” this comment makes the case that many nonprofit mergers arise from a variety of motivations other than organizational crisis. Mergers are increasingly strategic partnerships in which two or more nonprofits seek mutual advantages, such as a larger market share, better access to capital, and other longer‐term goals. Mergers are most successful when relatively strong organizations analyze their circumstances and determine that they can best advance their missions through working together. A merger has limited utility in saving an organization in crisis. Rather, it is a tool for advancing the missions of different organizations by combining their strengths. The relationship is best entered into freely, after a great deal of consideration, and with reasonable expectations for both the work ahead and the potential payoff.

Suggested Citation

  • David Piana, 2003. "Comment on William M. Rohe and Rachel G. Bratt's “Failures, downsizings, and mergers among community development corporations”: Merger does not mean failure," Housing Policy Debate, Taylor & Francis Journals, vol. 14(1-2), pages 57-68.
    • Handle: RePEc:taf:houspd:v:14:y:2003:i:1-2:p:57-68
    DOI: 10.1080/10511482.2003.9521468
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