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Grant Making and Asset Use, Mergers and Acquisitions

Nonprofit Spinoff Reunites with Foundation Parent: The State of Capacity Building

Sheela Nimishakavi and Ruth McCambridge
July 21, 2016
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Wood-merger
Wolkensee / Waldemar Merger

July 21, 2016; Richmond Times Dispatch

An announced merger between The Community Foundation Serving Richmond and Central Virginia (TCF)—assets $425 million in 2014—and the Partnership for Nonprofit Excellence (PNE)—assets $1.3 million in 2014—seems like less of a merger and more like a family reunion, a formal restructuring meant to provide a base for a different direction.

PNE, you see, was started by the foundation; the two are co-located and share back office services, so in terms of how it faces the public, the “merger” or re-assimilation will not mean much to the public or to nonprofits in the area. What will mean something to them, however, is the foundation’s intention for PNE, which is to use it to strengthen local nonprofits.

Sherrie Armstrong, president and CEO of The Community Foundation, is declaring it as an inflection moment, in that the restructuring will allow them to “reimagine nonprofit capacity building in the context of our changing landscape.”

Programs focused on nonprofit leadership development, customized technical assistance and online tools and information will be scaled to complement other available resources and market demand.

Loosely translated, that means, “We are still committed to capacity building, but times have changed and we need a new approach to the work.”

Armstrong says the decision to merge came after a yearlong study by consultants and board members from each organization. “One part was to do a deep dive on what’s happened in 10 years. ‘What’s out there?’ Ten years ago when it started, there weren’t a lot of resources in the market to do capacity building work.”

Kudos to TCF and PNE for recognizing that it’s a new day and for undergoing a critical self-assessment to determine the best next steps with the community in mind. Nonprofit capacity building should be changing significantly right now for many reasons, and big sweeps may often be necessary.—Sheela Nimishakavi and Ruth McCambridge

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About Sheela Nimishakavi
Sheela Nimishakavi

Sheela Nimishakavi is a nonprofit finance and operations professional with a passion for creating socially just and inclusive communities. She has held senior management positions at several community based organizations addressing access to healthcare and services for persons with disabilities, currently serving as the Director of Operations of the Brain Injury Association of Virginia.After working in the nonprofit field for over a decade and seeing many organizations struggle with the administrative requirements of running a nonprofit, Sheela founded ThirdSuite, a consulting firm that offers nonprofit administrative services and trainings to help organizations increase their capacity and further their mission.Sheela received an MA/MPH in Health Policy and Management from Boston University School of Public Health, and a BS in Neurobiology, Physiology and Behavior from the University of California, Davis. She currently serves on the boards of the Central Virginia Grant Professionals Association and Empowering People for Inclusive Communities.

About Ruth McCambridge
Ruth McCambridge

Ruth is the founder and Editor Emerita of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.

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