There have been numerous mergers of two or more associations or nonprofits. Some transitions are smooth and seamless to members and stakeholders, while others can get a bit messy. Choosing the right partner to help with this type of project is key to the success.

The Challenge

Two organizations with similar missions, along with stakeholders who belonged to both, wanted to form an alliance to create a stronger industry. One was a 501(c)(6) association and one was a 501(c)(3) foundation, and with these differences, there was no easy way to merge.

Knowing that, the Association of Pool and Spa Professionals and the National Swimming Pool Foundation engaged a well-established association management company (AMC) to facilitate a unification of the two organizations. Their plan: create an umbrella organization to parent both organizations, while still maintaining both the c3 and c6 status.

Why an AMC?

During the search process, the committee accepted proposals from consulting companies, law firms, search firms, and the like. The search committee felt that an AMC was the best option for this type of project because of its experience and history.

AMCs typically have the background and historical knowledge of a merger of this kind and can offer guidance on the day-to-day operations, as well as help staff work through the transition, which would be key to this merger’s success. An AMC’s experience with component management also made this type of firm more capable to guide the committee on which responsibilities should lie with which part of the organization.

The Tactics

The two organizations worked together to come up with the Pool and Hot Tub Alliance (PHTA). They engaged legal counsel to prepare an agreement that outlined the following responsibilities under each status:

After the announcement of the unification was made to the industry, the newly formed PHTA continued working on developing new governing documents, amending bylaws and articles of incorporation, creating a joint set of policies, and creating the new board. It was agreed that each organization would bring five board members to PHTA, and each member will serve one, two-, and three-year terms so both organizations would have representation for at least the next three years. 

The Results

Since the unification was finalized, PHTA has developed a new logo and brand and aligned the financial plans for all three organizations with the shifting of many programs. Part of this planning included a full program evaluation and portfolio review. All existing programs and services were evaluated, including who those benefits appealed to and whether they were profitable. That evaluation helped determine which of those programs needed to be phased out.

The staff of the two previous organizations were also integrated. Since half are based in Colorado and the other half in Virginia, the AMC’s HR team assisted the interim CEO in a compensation and benefits analysis to ensure there was parity across the new organization. In addition, with the AMC taking care of the operations behind the scenes, volunteers could focus on the mission, cause, and issues at hand, which worked well for this project.

The entire pool and hot tub industry had been pushing for this unification for many years, so this is a great accomplishment and will help drive the industry forward.