Well, it’s happening again. We’re wallowing in rough economic waters, and so a lot of folks are writing and talking about the need to promote the mergers of not-for-profit organizations. Much of this learned commentary seems to be coming from the foundation world.....................I’m not going to enter that debate in this blog, but it’s got me speculating about a possibly related and possibly heretical topic: the merger of grant-making foundations. Why shouldn’t the same arguments in support of cost-cutting and efficiency that are employed to promote the merger of health facilities or human service organizations apply to foundations as well? Think of all the dollars now spent on foundation office rent, salaries, travel and publications being converted into grants. Might not the consolidation of foundation assets enable these institutions to gain a better return on investment and perhaps to make larger grants with more impact?....................I know, I know. Nobody wants to give up power and independence and turf. But that’s what foundations say when they discuss the reluctance of not-for-profit grant-seekers to merge their operations....................Assuming that my concept has any merit, I wonder what it will take to overcome the reluctance of philanthropoids even to consider its inherent benefits. Is there a large foundation out there that will have the gall to make a tender offer to a smaller one? Or would that move be interpreted as a hostile takeover? (Sounds a lot like Wall Street language, doesn’t it?) Is there a group of smaller foundations whose trustees might realize that they’re all supporting essentially the same programs and could better serve the public good if they consolidated their efforts? Is there a regional or national association of grantmakers willing to reserve some time at its next conference to promote some serious discussion about this topic?.................... Tough economic times should provide the occasions to re-think what we do and why we do it. Sure, some not-for-profit organizations probably should heed the call to merge, but the foundations who are offering that challenge might also think about taking it to heart themselves.