2018 Fall issue of Horizons

From a tax perspective, there are additional considerations to be carefully evaluated for proper tax treatment such as whether the combination is structured as a legal merger of entities, a purchase of assets by the surviving organization or a donation of assets to the surviving organization. Launch & Integration The launch is often the culmination of months of effort and the first opportunity the combined organization has to celebrate the business combination with the community and donors. Whether an organization chooses to launch quietly or in grand fashion, this particular stage of the M&A process is filled with promise and a push toward making a greater impact. Integration, on the other hand, is hard work. It takes a commitment to resolve the people, processes and technology issues that will arise. It is filled with highs and lows and requires open communication amongst the constituents.

In some ways, this last stage of the process is the hardest, but organizations willing to tackle the issues in a clear and direct manner can integrate efficiently and effectively. Other Opportunities If a merger or an acquisition is not right for your organization, there are other ways to combine resources, including joint ventures, shared services agreements and the integration of certain business processes (usually “back office” operations). NFPs would benefit from considering restructuring and other resource sharing opportunities more often than they do. Not only is it one way to ensure that the programs and mission of the organization continue when faced with economic challenges, but is also a means to increase efficiency and leave a greater impact on the community.

NOT-FOR-PROFIT SERVICES GROUP

As a recognized leader in the not-for-profit sector, RubinBrown has the resources essential to serve arts and cultural organizations, foundations, private schools, religious organizations, social service agencies and trade and membership associations. For more information, visit www.RubinBrown.com/NFP .

Judy Murphy, CPA, CGMA Chair & Partner Not-For-Profit Services Group 314.290.3496 judy.murphy@rubinbrown.com

Mary Kay Lofgren, CPA Partner Not-For-Profit Services Group 314.290.3475 mary.kay.lofgren@rubinbrown.com

Amy Altholz, CPA, CGMA Partner-In-Charge Not-For-Profit Services Group 314.290.3369 amy.altholz@rubinbrown.com

Kim Ryan, CPA, JD, LL.M Partner Not-For-Profit Services Group 303.952.1208 kim.ryan@rubinbrown.com

Sharon Latimer, CPA Partner Not-For-Profit Services Group 816.859.7907 sharon.latimer@rubinbrown.com

Christina Solomon, CPA, CFE, CFF, CGMA Partner Not-For-Profit Services Group 314.290.3497 christina.solomon@rubinbrown.com

32 Not-For-Profits Can Create Value though Strategic Restructuring