Nonprofits & NGOs: Recombination as Rebirth
Posted by Stanford Social Innovation Review (SSIR) on July 29, 2025
In this time of crisis, nonprofits may be forced into mergers, acquisitions, and sunsets. A few principles will help leaders make the most of a difficult moment.
Desperate times call for proactive measures. Nonprofits are navigating an immensely challenging economic and political context. Many find themselves thinking about the once-unthinkable: mergers, acquisitions, and sunsets.
Consider the global development sector. It faces immense uncertainty given the dissolution of USAID, reduction in bilateral funding, and broader political headwinds. One recent survey suggested that 60 percent of development organizations could close within six months. Matchmaking efforts are underway that create databases of organizations ready to consider recombination.
While there is particular urgency among global development organizations, the conversations around restructuring are spreading across the sector. This presents an opportunity for the field. Recombination offers a chance for creativity. Closure can be compost for what comes next.
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