Giving Compass' Take:
- George Tsiatis discusses using mergers and acquisitions to empower strategic nonprofit growth, enhancing impact and expanding organizational networks.
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In 2023, Resolution Project and Enactus began exploring the prospect of merging our organizations. The goal was to scale our impact without rebuilding existing infrastructure: Resolution Project had developed a proven fellowship model supporting young social entrepreneurs, while Enactus had built a powerful international network and comprehensive education programs.
We knew the path wouldn’t be simple, and it hasn’t been. But while others have argued that the nonprofit sector should consider mergers and acquisitions (M&A) as “not just an escape plan,” our experience empowering strategic nonprofit growth through merging demonstrates that perhaps we should go even farther than that. Mergers and acquisitions should be normalized as a strategic tool for mission-driven organizations.
Our Experience Empowering Strategic Nonprofit Growth
Our experience with merging exemplifies how nonprofit M&A can dramatically accelerate impact through network expansion. By strategically integrating our organizations, we gained access to an international network that Enactus had built over 50 years of painstaking work, achieving in just a few years what would have required a decade or more (and millions of dollars) to develop independently. We expanded our country network from three countries to 35 across six continents, creating unprecedented opportunities for young social entrepreneurs to connect globally.
Our merger demonstrated significant resource optimization while amplifying impact. We reduced our combined annual budget from $11-13 million to $6-7 million but strategically reinvested these savings to enhance program quality and reach. Resolution Project had previously supported 700 young social entrepreneurs, but our integration with Enactus expanded our joint impact to reach over 40,000 young social entrepreneurs annually across nearly 100 countries. This expanded reach is facilitated through Enactus’ 35 independent country offices, which receive guidance, network connectivity, and shared services at the global level.
Unlike private sector mergers where financial returns serve as the primary metric, our social sector M&A required deep mission alignment as its foundation. This alignment enabled us to preserve and amplify the best elements of both organizations’ approaches. Resolution’s intensive fellowship model, which provides seed funding and mentorship, now integrates with Enactus’s established educational programming and international competition framework. This integration will be showcased at our 2025 USA Expo in Kansas City, where Resolution’s social venture challenge model will be incorporated into Enactus’s competition structure, creating a more comprehensive support system for young social entrepreneurs.
Read the full article about empowering strategic nonprofit growth by George Tsiatis at Stanford Social Innovation Review.