The Movement”: How two charities merged to scale their impact and push arthritis care forward
For many years Arthritis NSW and Arthritis Queensland faced the same, growing challenge (a “joint challenge”, if you will excuse the pun!): How to effectively serve the large and diverse group of people with arthritis.
Both organisations had been operating for over 50 years but traditional service models were helping only a fraction of those living with arthritis, whilst fundraising and operational models were becoming increasingly challenging.
Both boards – separately – recognised a new approach was required in order to deliver on the mutual vision of ‘Freedom from Arthritis’. At the same time, the Covid-accelerated rise in online service delivery hinted at opportunities to scale up impact. The time was right to look at service models and operational approaches.
Preliminary Collaboration
The two Boards and CEOs agreed to test the waters of collaboration by sharing resources and best practices for a year. They launched shared program offerings, hired the first shared staff position – a Fundraising and Marketing Manager who was able to align brands and campaigns – and shared other resources such as systems and professional development. The benefits began to be felt in both culture and engagement of the teams, as well as financial savings and increased client numbers.
At the same time, the two Boards of Directors found opportunities to meet online. It became clear the two groups shared similar motivations, cultures, ambitions and skill sets.
So, when the Arthritis Queensland CEO moved to another role in mid 2022, they agreed to share a CEO (me!) to further extend the collaboration.
This measured approach helped build mutual trust, a sense of shared purpose, and tangible proof that streamlined structures could yield better outcomes.
As the benefits of collaboration, and rapport amongst the teams grew, the M word (merger!) was first raised, initially tentatively, but then with genuine curiosity and increasing interest.
Forming a Merger Team
Recognising the need to move at an appropriate pace, whilst still providing transparency and reference back to the full boards as required, a Merger Working Group was assembled in late 2023 and met monthly with Terms of Reference and shared documentation:
This included 2 Chairs, 2 Directors from each organisation, me (the shared CEO), a legal advisor (when needed) and a consultant to facilitate the process.
The Shared Purpose
As one of the first steps, a high-level vision and strategy document was agreed with a Shared Purpose to inform everything that followed. Every organisation’s will look different, but here was ours:
To create a future where our Clients – every person in Queensland and New South Wales impacted by arthritis – receives the support, resources, and care they need to live life to the fullest, free of pain. We also support research to increase our knowledge of arthritis and find better ways to prevent, treat and ultimately cure the condition.
During the same time, a delivery plan, and a business case covering financial model and client numbers and impact were also prepared. The latter served as THE WHY – the North Star – for the project.
Membership and Corporate Structure
The lawyers recommended a “Double Change of Member” model, with a new holding company becoming the single Member of both state entities. This required constitutional change for both entities, and engagement with Arthritis NSW’s ‘public’ membership model required additional consultation and attention.
Stakeholder Consultation
From the outset, securing buy-in from donors, volunteers, and staff required planned engagement. Staff were kept abreast of merger discussions, whilst they, along with clients and donors, saw the tangible impacts of collaboration – increased service offering, combined campaigns, shared learnings and resources etc. The public language remained around the collaboration through 2023.
By mid 2024, as the collaboration was firmly established and benefits evident, the potential for a full merger was first discussed with select stakeholders in hypothetical terms, and opinions, questions and answers shared.
Building the Brand Identity
A fresh brand was essential to reflect this forward momentum. One of the key roles for donors, members and volunteers was helping shape a brand that connected with the Shared Purpose, and looked to the future.
Opinions were sought widely and many options were considered. The Arthritis Movement name, a bold, vibrant palette and flowing logo got universally positive feedback and was locked away until the right time.
Key Decisions
Through 2024 the Merger Working Group – with reference back to the full Boards – continued to meet monthly, prepare documentation and work through key decisions such as:
- Chair of the merged entity
- Board and committee composition
- Brand identity
- Management of assets
- Approaches to policies, risk, key suppliers and other corporate considerations.
By the time formal notice of meetings and plans were shared with Members in late 2024, most stakeholders knew where the winds were blowing. There were few surprises and near-universal approval as shown by the votes at the General Meetings. This gradual, inclusive approach proved invaluable in minimising friction and ensuring broad support.
Arthritis NSW held its Extraordinary General Meeting on 1st November 2024 and the resolutions to proceed with the merger passed unanimously. The Arthritis Queensland equivalents had passed the week before. Now it was a question of implementation. We notified all stakeholders the next day and launched the new brand in January 2025.
Organisational Registrations
The corporate process required methodical work with the ACNC / ATO / ASIC either side of Christmas. Updating constitutions, governance structures, and memberships were all crucial to maintain legal standing and trust. Though administrative, these processes are vital for transparency and accountability and required careful guidance by legal advisors and Company Secretaries.
The Arthritis Movement (TAM) was registered and granted charitable status with ACNC. A Merger Deed and other TAM documents were signed on 9th February 2025 to finalise the merger. Group reporting status, fundraising licenses and a raft of other procedural and operational steps followed.
Operational Merger Steps
I would love to say that the signing of documents on 9th February 2025 was THE end. But it was only AN end. Now attention turned to the newly merged Board storming, norming and performing, a more thorough strategy being drawn up, and a myriad of operational steps including:
- Contract harmonization and employee transfer
- Asset consolidation
- Audits
- Supplier consolidation
- Systems integration (so many systems!!)
Today we are still finalizing some of these, and celebrating each new milestone. It’s a lot of work, and there are considerable costs incurred, but step by step we are moving towards one efficient and harmonized organisation and I know 95% of these tasks will be complete by the end of May 2025.
Outcomes
Since merging, supporter and client endorsement has been strong. With reduced administrative overlap, more funding can now be directed to services and research. Most importantly, the increased client numbers and impact seen through the collaboration has been locked in and extended.
Staff engagement has been monitored and remained high throughout the process. Rather than lose staff, we were able to transition staff from admin to service delivery providing continuity, increased service capacity and reassuring local supporters. Early responses suggest that stakeholders appreciate the smoother, more unified approach.
There is a wonderfully positive energy throughout the organisation and the lofty goal in the Shared Purpose feels achievable.
Leadership reflections, challenges, mistakes and lessons learned
Guiding this merger required drive, strategic foresight and open dialogue and it was great to work with complementary skill sets in the Merger Working Group. As CEO it was a rollercoaster ride and I appreciated having external sounding boards including my colleagues at Leaders For Impact and others who had merger experience. It was a process I enjoyed and grew through and its thrilling to see the energy in the merged entity.
The biggest challenges – which I feel we dealt with well – included:
- Managing the various personalities
- Keeping the two organisations synchronized
- Communication and engagement with, and alignment of, the two Boards who had their own systems, methods of working and cadence of meeting
- Maintaining Business As Usual whilst investing time and energy into the merger.
Mistakes made (“Learnings”!) included:
- Underestimating the ‘inter-state rivalry’ (State of Origin should have given me a clue!)
- Assuming everyone was on the same page on some projects rather than bringing all key considerations into the light of the Merger Working Group forum early
- Not engaging some stakeholders early enough in the consultation process
- Not having some of the tougher conversations (roles, suppliers, brand) earlier
- Underestimating the time involved in processing applications through the ACNC/ATO – it seems those timelines have recently increased
Thankfully none of these derailed the process and the opportunity for the merged organisation to help many, many more people with arthritis remains our North Star.
The lessons learned include:
- Start with a Shared Purpose.
- Capitalise on any opportunities that arise to move things forward. Eg. a change in personnel.
- The importance of gathering the ‘right’ team – including an experienced guide
- Over-prepare and over-communicate.
- Embrace the unexpected lessons that arise and enjoy the journey!
Conclusion and Takeaways for Other Leaders
A merger can seem daunting, but it can also spark renewal and greater impact. By defining a Shared Purpose, engaging all stakeholders, designing a plan and creating a cohesive identity, we’ve formed a platform to support more people and drive innovation. Our story as The Arthritis Movement continues to evolve, but we hope it encourages other organisations to consider bold collaborations that amplify strengths and deliver meaningful change.
Alex Green
CEO, The Arthritis Movement
2/5/2025
For other organisations considering a merger.
Having guided The Arthritis Movement through this process, along with leading two previous For-Purpose successful mergers, Alex has established Loom Consulting to bring this experience to others grappling with the idea and opportunity of a potential merger.
Loom Consulting helps For-Purpose organisations to maximise impact through bespoke Merger Advice and Workshops. We help optimise your time, energy and money and find a better way to achieve your vision and do more good. www.loomconsulting.com.au