Description: We often hear of corporate mergers in reading the financial press. But it’s not every day that we hear of the merger of two large charitable organizations. That did happen this past week, however, when the Canadian Cancer Society and the Canadian Breast Cancer Foundation joined forces. With declining revenues, the merger will help the new combined entity direct funds to research by reducing administrative costs.
Date: February 1, 2017; updated February 2, 2017
1) What do you think about this merger strategy?
2) Many students may have studied consolidations of profit oriented enterprises. But what would be some differences to consider in preparing the consolidated financial statements of not-for-profit organizations?
3) Do you think the merger of these two major charities may signal the start of a trend?