First, read these three best practices for successful merger or acquisition of non-profit organizations. The agreement, sometimes referred to as “membership” of non-profit organizations, can be obtained through changes to the statutes and statutes of “subsidiary” non-profit. These documents would be amended to reflect the fact that the “mother organization” is entitled either as a single member (with the exclusive right to vote) of the “subsidiary” or as a single member of the “subsidiary” or as a single member of the “subsidiary” or with the right to appoint the subsidiary`s board of directors. Although beyond the scope of this article, it is emphasized that not-for-profit organizations can participate in other types of agreements that reduce the mix of their resources. For example, two not-for-profit organizations may enter into joint funding, joint programming, combined services or other types of joint ventures. These types of agreements allow the not-for-profit organizations concerned to maintain their autonomy while achieving certain efficiencies. It is also possible that non-profit organizations may enter into joint venture agreements with for-profit companies. These rules raise tax issues that may affect the structure of each joint venture. Where the merged company owns real estate, the surviving company should consider issues such as the costs and requirements of the transfer of ownership, whether the credit conditions require the bank`s agreement, whether there are a wagering tax on the property, whether the merger will result in a transfer tax and whether an environmental assessment should be carried out.
Some public not-for-profit organizations also allow the consolidation of non-profit organizations, which is very similar to a merger of a non-profit organization with another non-profit organization.