Strategic alliances and restructuring refer to a broad continuum of long-term, organizational collaborations designed to leverage the strengths and capacities of two or more organizations. There are many types of strategic alliances and restructuring, including:
An alliance in which organizations come together to launch and manage one or more programs to further the goals of the participating organizations.
When two or more organizations come together to launch or manage a revenue-generating activity that benefits all partners (e.g., a combined capital campaign or social entrepreneurial venture).
An alliance that entails the sharing, exchanging, or contracting of administrative functions to increase the operational efficiency of one or more of the partner organizations.
A structure that enables an organization to exist as a project or program under another organization’s umbrella, as opposed to existing as an independently incorporated entity.
The transfer of a program or other asset (includes any program-specific funding, assets or equipment) to another nonprofit organization who will then continue the work of the program.
Full integration of all programmatic and administrative functions for one or more organizations into one, single organization.
An integration of some or all administrative functions and programmatic services of participating organizations, with the goal of increased administrative and programmatic efficiency and/or efficacy. Although the visibility and identity of the original organizations often remain intact in a parent-subsidiary relationship, some organizations involved in such restructurings consolidate to the point where they look and function much like a merged organization. Not everyone with this intent refers uses this language; some organizations prefer to use the term “affiliated entities.”
Joint venture corporations consolidate some portion of the functions of two or more organizations within a jointly controlled corporation. The partner organizations share governance of the new organization.