Mergers occur when one or more organizations dissolve and become part of another organization's structure or when two or more organizations dissolve and establish a new structure that includes some or all of the resources and programs of the original organizations. Respondents involved in integrations were more likely than those involved in alliances to be focused on human services, to have large budgets, to have active boards, and to be located in urban communities. Respondents involved in alliances were more likely than those involved in integrations to be focused on arts and culture, to have small budgets, to have fairly inactive boards of directors, and to be located in rural communities. Integrations usually involved fewer respondent organizations than alliances did. Very young and old respondent organizations were less likely to be involved in any type of strategic restructuring.
Competition seems to be a key factor in strategic restructuring.
It appears that certain industries or service areas are growing crowded with nonprofits and, in some cases, for-profits and governmental organizations. Organizations are attempting to temper competition by cooperating or merging. Respondents entered into a strategic restructuring more often to improve the quality or range of what they do and the efficiency with which they do it than because of any immediate threats of closure or pressure from funders. In other words, they appear to be approaching strategic restructuring as a result of forecasting and planning. Respondents generally reported very positive strategic restructuring experiences without significant problems.