The Smart Communications Podcast: Episode 184 - Should Your Organization Consider a Merger?
Release Date: April 16, 2025
Hosts and Contributors
- Host: Farah, Trumpeter, Co-Director, and Worker Owner at Big Duck
- Guest: Ami Dhar, Founder and Executive Director of Idealist.org
1. Introduction to the Episode
In Episode 184 of The Smart Communications Podcast, hosted by Farah from Big Duck, the discussion centers around the pivotal question: Should your organization consider a merger? Farah is joined by Ami Dhar, the founder and executive director of Idealist.org, to delve into the intricacies of nonprofit mergers, particularly focusing on the recent merger between Idealist and Volunteer Match.
2. Background of Guest and Organizational Overview
Ami Dhar’s Journey:
- Origins: Born in Jerusalem, raised in Peru and Mexico.
- Professional Milestone: Founded Idealist.org in 1996 with an initial investment of $3,500.
- Growth: Idealist has evolved into one of the most prominent nonprofit resources online, featuring information from over 150,000 organizations globally.
Idealist.org:
- Initially created as a platform for nonprofits to list job opportunities, volunteer roles, and internships.
- Over the years, Idealist has expanded its services, catering to a broad spectrum of nonprofit needs.
Quote [01:36]:
Farah: “I am delighted to talk about this topic... Ami?... Let me tell you about Ami, just in case his name doesn't ring a bell.”
3. The Merger Between Idealist and Volunteer Match
Rationale Behind the Merger:
- Shared Mission: Both Idealist and Volunteer Match serve the nonprofit sector by connecting organizations with job seekers, volunteers, and interns.
- Redundancy Elimination: Ami emphasized the inefficiency of operating as two separate entities with similar architectures and user bases.
Quote [02:29]:
Ami Dhar: “I always felt from my end that we should be one. Like, it made no sense to me that we're sort of two separate organizations essentially doing something very similar…”
Merger Timeline:
- Initial Contact: Conversations rekindled after leadership changes at Volunteer Match.
- Negotiation Period: Spanned approximately six to seven months, involving legal negotiations and due diligence.
- Closure: Officially signed on December 31st and closed on January 31st.
4. Catalysts for the Merger
Leadership Changes:
- Volunteer Match experienced significant leadership turnover, with the departure of CEO Greg Baldwin in May.
- Ami leveraged his relationship with board members, notably Meg Garlinghouse from LinkedIn, to initiate merger discussions.
Quote [04:53]:
Ami Dhar: “When the CEO left, I reached out to a board member that I knew for a long time... and that's the place we started.”
Economic Incentives:
- Unlike the for-profit sector, nonprofits lack financial incentives for mergers, making them relatively rare.
- Ami compared the acquisition dynamics in for-profits to the nonprofit sector to highlight the differing motivations.
Quote [05:50]:
Ami Dhar: “In the for-profit world... In nonprofit world, you put in the same amount of work or more, but you don't own it, and so you can't be compensated for it.”
5. Benefits of the Merger
Operational Efficiency:
- Cost Savings: Reduction in overhead costs by consolidating roles like accounting, IT, and administrative functions.
- Streamlined Services: Combining platforms to offer a unified user experience for job seekers, volunteers, and organizations.
Quote [08:04]:
Ami Dhar: “You can do more with less… there's no need for two accountants, you don't need two IT people…”
Enhanced Reach and Impact:
- National Presence: The merger strengthens the national footprint, balancing regional strengths between the East and West Coasts.
- Increased Traffic and SEO: Combining user bases effectively doubles the platform’s traffic and search engine optimization benefits.
Quote [11:00]:
Ami Dhar: “Both sides can benefit from the doubling of traffic. It should have like a doubling of traffic, a doubling of SEO.”
6. Challenges and Process of Merging
Technical Integration:
- Platform Consolidation: Merging two separate websites (idealist.org and volunteermatch.org) into a single, cohesive platform.
- Data Migration: Addressing duplicate entries and integrating disparate systems, such as differing choices in web services (e.g., Amazon Web Services vs. Heroku).
Quote [10:42]:
Ami Dhar: “We're merging the data, we're migrating everything into one place. There's the duping to be done…”
Cultural Integration:
- Remote Work Advantage: The rise of remote work has mitigated potential cultural clashes that might have arisen from merging different office environments.
- Continuity for Users: Retaining Volunteer Match’s senior staff to ensure continuity and maintain user trust.
Quote [21:22]:
Ami Dhar: “The fact that so many people are working remotely now makes it easier… Everyone's at home anyway.”
Legal and Financial Considerations:
- Compliance: Handling audits, 990 filings, insurance issues, and other regulatory requirements.
- Organizational Ego: Overcoming reluctance to merge due to attachment to existing organizational identities.
7. Branding and Communication Strategy
Naming the Merged Entity:
- Decision to Retain Idealist Brand: The merger preserves the Idealist brand, leveraging its strong market presence and recognition.
- Maintaining Volunteer Match Presence: Both URLs (idealist.org and volunteermatch.org) remain active, redirecting to the unified platform to preserve SEO equity and user familiarity.
Quote [16:36]:
Ami Dhar: “If someone's looking for volunteer opportunities and finds Volunteer Match, they should land on a thing that says Volunteer Match.”
Visual Identity:
- Logos Integration: The Volunteer Match logo will coexist with Idealist's branding on the platform to maintain a sense of familiarity for existing users.
Gradual Rollout:
- Community Communication: Immediate email notifications to the Volunteer Match community, coupled with visible headers on the volunteermatch.org site announcing the merger.
- Staff Integration: Retaining key Volunteer Match staff to facilitate a smooth transition and uphold community trust.
Quote [15:43]:
Ami Dhar: “We immediately emailed the whole Volunteer Match community… We're going to keep the logo, you know, even on Idealist.”
8. Future Plans and Vision
Platform Enhancements:
- Unified Profiles: Organizations will manage a single profile encompassing job listings, volunteer opportunities, and internships.
- Integrated Search Functionality: Users can seamlessly search across all opportunities, enhancing user experience and engagement.
Quote [10:21]:
Ami Dhar: “Out of that profile, you'll be able to list your jobs, opportunities, internships, whatever it is that you want under one place with one integrated search.”
Programmatic Initiatives:
- Idealist Days: Launching monthly themed days to encourage community engagement and action.
- Global Consistency: Selecting dates that are globally consistent (e.g., 1/1, 2/2) to facilitate worldwide participation.
- Community Activities: Encouraging acts like baking a cookie for a neighbor or organizing local nonprofit events.
Quote [12:48]:
Ami Dhar: “We're going to launch these monthly days of celebrating sort of action, collaboration and stuff like that.”
9. Advice for Nonprofits Considering Mergers
Thorough Planning and Vision:
- Imagining the Merger: Nonprofits must deeply visualize the integration and ensure alignment in mission and operations.
- Learning from Experience: Engaging with leaders who have prior merger experience can streamline the process.
Quote [21:22]:
Ami Dhar: “The main thing is to truly imagine it. Truly imagine it. Coming together is going to work some things.”
Attention to Detail:
- Logistical Precision: Handling every detail meticulously, from accounting to compliance, is crucial for success.
- Remote Integration Benefits: Leveraging remote work structures to ease cultural and operational integration.
Quote [21:22]:
Ami Dhar: “Every detail ends up mattering, I think. And so talking to the people who have done this before, the logistics are important.”
Openness and Communication:
- Community Engagement: Maintaining transparent communication with stakeholders to build trust during the merger process.
- Retaining Key Personnel: Ensuring continuity by retaining experienced staff from both organizations.
Quote [22:47]:
Ami Dhar: “Most mergers fail and they fail for very good reasons. And so you have to be careful of each of those reasons, not presuming you know things you don't know.”
10. Conclusion and Final Thoughts
The merger between Idealist and Volunteer Match underscores the potential benefits of strategic alliances within the nonprofit sector. By consolidating resources, streamlining operations, and enhancing user experiences, nonprofits can amplify their impact and better serve their communities. However, Ami Dhar emphasizes the importance of meticulous planning, cultural integration, and transparent communication to navigate the complexities of such mergers successfully.
Final Quote [22:47]:
Ami Dhar: “Most mergers fail and they fail for very good reasons. And so you have to be careful of each of those reasons, not presuming you know things you don't know.”
Connect with Idealist and Ami Dhar:
- Website: idealist.org
- Contact: idealist.org@idealist.org
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Developed by Big Duck, an agency dedicated to empowering nonprofits with smart communications strategies to advance their missions.