Nonprofit Merger Case Study: United Way of Greater Kansas City and Wyandotte County
On July 1st, 2020, the United Way organizations in Kansas City and Wyandotte County (both in Missouri) formally combined operations in order to conserve resources and more comprehensively serve their respective communities and those in between. This nonprofit merger comes over a decade after the merger of four regional United Way organizations that came to be known as the United Way of Greater Kansas City. The success of that consolidating merger prompted the move to merge the United Way of Wyandotte County into its partner organization in Kansas City. The United Way of Wyandotte County will retain its current operations in the community but fall under the greater administrative structure of the Kansas City operation.
This nonprofit merger comes on the heels of four other United Way mergers in the region. With the addition of Wyandotte County United Way, the United Way of Greater Kansas City serves approximately 2 million residents in six counties of Missouri. While their administrative structures and redundant roles were streamlined, the physical organizations themselves remained in place to continue serving their communities seamlessly throughout and after the nonprofit merger process. Similar to the strategic merging process of Big Brothers Big Sisters of Metropolitan Chicago, the United Way of Greater Kansas City expanded into a regional role creating greater sector efficiency resulting in fewer dollars being funneled away from services and into administrative costs. Bringing together two of the largest nonprofits in the Greater Kansas City area, the merger was mindful of the community it serves throughout the process and after its competition with great success.
Because of the preexisting shared mission and common culture of these organizations, this nonprofit merger retained a high likelihood of success in terms of compatibility and shared values. This shifted much of the focus toward merging assets and channels of communication. The combination of the two groups served to maximize the resources available in the region. In 2017, The United Way of Wyandotte County received $3.1 million in grants and contributions, and the organization held $1.8 million in assets. At the same time, the United Way of Greater Kansas City received $26 million in grants and contributions and possessed $13.5 million in assets. These numbers reveal the incredible financial assets and fundraising network of the United Way of Greater Kansas City and the great boost they received through this nonprofit merger. The resulting merged organization expects to raise roughly $30 million the first full year after the merger. These circumstances follow a common path of many nonprofit mergers, bringing together regional resources to better serve their communities.
In a similar pattern as seen in the region served by Big Brothers Big Sisters of Metropolitan Chicago, the United Way of Greater Kansas City expanded its range of service resulting in a more efficient organization financially and administratively. Harkening back to the Nonprofit Merger Blog shared in September, this merger involves eliminating the redundant structures that adversely affect the efficiency and impact of nonprofits all over the country. Streamlined structures result in money saved, and that is money that can be redirected back to the services that nonprofits administer. This strategy improves efficiency and makes the most of donor resources.
Through strategic planning, nonprofits can use their resources more effectively and serve their communities in better ways. NMBL’s nonprofit consultants have 30+ years of experience as nonprofit executives and bring their expert insights and innovation to bear in their nonprofit consulting. Contact info@nmblstrategies.com today to learn more about what NMBL Strategies can do for you.