Opinion: Charities Should Consider Mergers

Nonprofit groups should consider merging and taking other steps to avoid duplication of effort, write two prominent business leaders in an opinion article in The Boston Globe.

Kevin Phelan, executive vice president of the real-estate company Meredith and Grew, and Chad Gifford, chairman emeritus of Bank of America, say such consolidation is necessary as more companies have moved out of the region. They say the number of charities has grown just as the number of corporate donors has shrunk.

The two businessmen suggest that a local college volunteer study the situation and provide analyses of services, boards, financing, and potential merger opportunities. They suggest that the results of such a study be used by a commission of nonprofit, business, and political leaders in Boston to figure out solutions.

“This can be a painful process but there is no avoiding it,” Mr. Phelan and Mr. Gifford write. “This is surely better than a slow drift and a steady exhaustion of resources followed by a similarly steady disappearance of legitimate agencies and the important services they provide.”

Read The Chronicle’s special report about the growth of the nonprofit world.

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