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Where are all the charity mergers?

Despite many predictions that the Covid-19 pandemic may cause a surge in the number of charities deciding to merge, data seems to suggest otherwise.

Following a report which found the number of charity mergers declined during the Covid-19 pandemic, Harriet Whitehead looks at why this may be and what the cost-of-living crisis means for future collaborations.

Duncan Shrubsole, director of policy, communications and research at Lloyds Bank Foundation for England and Wales (LBFEW) says the reason we haven’t seen lots of charities completely shutting or merging “is because if you’re a charity trustee, you take steps before it goes bust”.

Tracey O’Keefe, account director partnerships and mergers at Eastside People, notes some of the data in the report reveals that financial stress levels were not as anticipated during the year. “With government furlough schemes and funders stepping up to support our sector during the pandemic, perhaps financial stress as a key driver for merger was dampened down,” she says.

Read the full Civil Society article.

Your job is always to take steps, so you end up making people redundant, stopping some services – so charities always do less before they shut down.

Duncan Shrubsole, director of policy, communications & research at Lloyds Bank Foundation

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