ABSTRACT
We expect to see an increase in merger activity in the charity sector. Financial reasons for merger in the voluntary sector are usually to meet a decline in funding as was seen by the Terrence Higgins/Lighthouse merger; or merging to become more efficient in delivering services, raising funds and improving their administration. The Charity Commission has played a minor but important role in assisting groups of smaller charities to merge where they were out of date or just too small to be effective. The research report by the University of Liverpool Charity Law Unit on ‘Legal Issues in Charity Mergers’ (Morris 2001) provides a comprehensive framework and series of recommendations to the very complex issues involved in charity mergers. A complication also recognized by the Commission (Stoker 2001) who we expect to see playing a facilitation role, but will also take a higher profile in encouraging co-operation between charities.
