As of September 2019, 61,691 public charities and 11,529 private and public foundations were registered in New York, and one could expect that such numbers have increased in the wake of the COVID-19 pandemic and widespread protests against systemic racism.

Most charities are community-based and focus on local needs. The pandemic has put immense strain on the resources of many charitable nonprofits at a time when their services are most desperately needed.

Faced with the prospect of shutting or drastically reducing operations, nonprofits — particularly those that provide overlapping or complimentary services — may consider combining as a means to survive this turbulent moment.

This article first identifies some of the key issues facing nonprofits due to the COVID-19 pandemic and the resulting economic downturn. Second, we outline how a merger or consolidation could benefit nonprofits in the current climate, and we provide a high-level overview of the steps involved in executing a merger or consolidation of New York nonprofits.

Photo of Lauren Boglivi Lauren Boglivi

Lauren Boglivi is the co-head of Proskauer’s global Mergers & Acquisitions and Private Equity Group. Through her extensive transactional experience, Lauren is a leading lawyer at the forefront of some of the most industry-defining M&A matters, in particular in media and entertainment and…

Lauren Boglivi is the co-head of Proskauer’s global Mergers & Acquisitions and Private Equity Group. Through her extensive transactional experience, Lauren is a leading lawyer at the forefront of some of the most industry-defining M&A matters, in particular in media and entertainment and the growing US gaming industry. In working with influential and high-profile media giants, Lauren has worked extensively on transactions that structure and shape the way media content is viewed and accessed around the world.

Lauren’s recent deal activity includes:

  • Represented Public Interest Registry (PIR), which was established by the Internet Society in 2002 to manage and operate the .ORG domain, in its pending $1.135 billion sale to Ethos Capital.
  • Led the Proskauer team that advised Empire City Casino, one of the largest gaming facilities in the U.S. and one of only two facilities licensed to operate video lottery terminals in the New York City metropolitan area, in its $850 million sale to MGM Resorts International.
  • Represented media giant Discovery in a variety of matters that have made headlines around the world, including its acquisition of Golf Digest, one of the world’s leading golf media brands, from Condé Nast, and its $2 billion strategic alliance with the PGA Tour. This alliance created a first-of-its-kind international OTT platform and gives Discovery global multi-platform live media rights outside of the U.S. for all PGA Tour events.
  • Advised Discovery in the $120 million sale of approximately 90% of the ownership of its Discovery Education business to Francisco Partners, a private equity firm.

Over the past year, Lauren has been recognized as a “Sports & Entertainment Trailblazer” by the National Law Journal and was named an Elite Dealmaker by Variety and a Top Lawyer by Cablefax.

Photo of Amanda H. Nussbaum Amanda H. Nussbaum

Amanda H. Nussbaum is a partner in the Tax Department and also is a member of the Private Investment Funds Group. Her practice concentrates on planning for and the structuring of domestic and international private investment funds, including venture capital, buyout, real estate…

Amanda H. Nussbaum is a partner in the Tax Department and also is a member of the Private Investment Funds Group. Her practice concentrates on planning for and the structuring of domestic and international private investment funds, including venture capital, buyout, real estate and hedge funds, as well as advising those funds on investment activities and operational issues. She also represents many types of investors, including tax-exempt and non-U.S. investors, with their investments in private investment funds.Business partners through our clients’ biggest challenges, Amanda is a part of the Firm’s cross-disciplinary, cross-jurisdictional Coronavirus Response Team helping to shape the guidance and next steps for clients impacted by the pandemic.

Amanda has significant experience structuring taxable and tax-free mergers and acquisitions, real estate transactions and stock and debt offerings. She also counsels both sports teams and sports leagues with a broad range of tax issues.

Photo of Grant R. Darwin Grant R. Darwin

Grant Darwin is an associate in the Corporate Department and a member of the Private Equity and Mergers & Acquisitions Group.  Grant counsels clients in connection with a variety of domestic and cross-border buyouts, mergers, acquisitions, divestitures, joint ventures, and recapitalizations, as well…

Grant Darwin is an associate in the Corporate Department and a member of the Private Equity and Mergers & Acquisitions Group.  Grant counsels clients in connection with a variety of domestic and cross-border buyouts, mergers, acquisitions, divestitures, joint ventures, and recapitalizations, as well as growth and venture-stage investments and general corporate governance matters.  Grant’s experience involves transactions in an array of industries, including manufacturing, gaming, retail and consumer products, technology and healthcare.

In addition to his corporate practice, Grant engages in a variety of pro bono efforts, including matters related to cash bail and prison reform, use of excessive force against minors and advising not-for-profit organizations on formation, corporate governance and related matters.  Grant has also spearheaded voter registration drives and joined in election protection initiatives.

Prior to Proskauer, Grant was an associate with Kirkland & Ellis LLP, where he was awarded the 2016 Kirkland & Ellis Pro Bono Leadership Award.

Photo of Seok Whee (Jason) Nam Seok Whee (Jason) Nam

Seok Whee (Jason) Nam is an associate in the Corporate Department. He graduated cum laude with B.A. from New York University and earned his J.D. from University of Pennsylvania Law School. While in law school, Jason received Certificate in Management from Wharton School…

Seok Whee (Jason) Nam is an associate in the Corporate Department. He graduated cum laude with B.A. from New York University and earned his J.D. from University of Pennsylvania Law School. While in law school, Jason received Certificate in Management from Wharton School and was the Recruiting Director of Student Discipline Advocacy Service.  Prior to law school, Jason served in the Korean Army and was the Head Instructor of a college preparatory institution.