Two questions that I am asked most often these days are: 

•  What his going to happen to foundation giving?
•  Do you see many organizations going out of business due to the current and future economic troubles?

While the answers to both questions are related, I think a better question at this time is simply this:

• What are some options for dealing with the current economic situation?

In the late 1990s LaPiana Associates worked with several large California foundations to look at the issue of mergers and collaboration. And given current conditions facing nonprofits, it might be a good time to review that information. The LaPiana website on Strategic Restructuring is a good place to learn more.

LaPiana highlighted several guidelines when it presented its work some eight years ago at a gathering in Seattle. The critical themes that are important now are these.

First, there is a whole range of options from collaboration to out and out merger.

Second, it's never too early to talk about ideas around these themes. One finding that stood out in LaPiana's original research was that these efforts succeed when two strong organizations come together. If you want until one or more of the partners are in serious financial or organizational trouble, the chances of failure increase dramatically.

Third, be imaginative. With a wide range of options it makes sense to discuss a variety of ways to structure a cooperative agreement or venture. Maybe it's as simple as collaborating with an organization that can provide your clients with a service they need, but that your organization does not offer. Rather than ramping up the ability to deliver a quality service, contracting with another skilled community provider might be the least expensive and quickest option to respond to client needs.

Even if a merger seems to be in the works, there are a variety of ways to go about that work. For example, consolidating administrative functions may allow an organization to maintain its program integrity while at the same time taking advantage of lower administrative costs. Bookkeeping, personnel, and other core services can be shared by either consolidating an administrative entity or through a management contract.

Fourth, if an organization feels that it can no longer survive as an independent entity, there are still options that can allow a program to maintain a public profile. The economic forces that drive organizations to consider strategic restructuring often have more to do with meeting "overhead" costs rather than the cost of direct service. A strong program that can support its direct service cost through revenues from contributions, grants, and fees might find a partner with enough administrative capacity to add the programs without having to add a lot of administrative costs.

Finally, if your organization is beginning to think about such issues, involve stakeholders. Your clients, volunteers, and funders all have perspectives that need to be considered. And more often than not, the lack of information is a bigger problem than providing too much information.