A joint effort: How two arthritis charities merged to increase their impact

Both organisations had been operating for over 50 years but traditional service models were helping only a fraction of those living with arthritis, while fundraising and operational models were becoming increasingly challenging.

Both boards – separately – recognised that a new approach was required in order to realise the shared vision of ‘Freedom from arthritis’.

At the same time, the big increase in the number and type of services delivered online, as a result of the covid-19 pandemic, hinted at opportunities to scale up impact. The time was right to look at service models and operational approaches.

Preliminary collaboration

The two boards and CEOs agreed to test the waters of collaboration by sharing resources and best practices for a year. They launched a shared program, hired the first shared staff position – a fundraising and marketing manager who was able to align brands and campaigns – and shared other resources such as systems and professional development. The benefits began to be felt in the culture and engagement of the teams as well as in financial savings and increased client numbers.

At the same time, the two boards of directors found opportunities to meet online. It became clear the two groups shared similar motivations, cultures, ambitions and skills.

When the CEO of Arthritis Queensland moved to another role in mid-2022, the two boards agreed to share a CEO (me!) to further extend the collaboration.

This measured approach helped build mutual trust, a sense of shared purpose, and tangible proof that streamlined structures could yield better outcomes.

As the benefits of collaboration and rapport among the teams grew, the M word (merge!) was first raised, initially tentatively, but then with genuine curiosity and increasing interest.

Forming a merger team

Recognising the need to move at an appropriate pace, while providing transparency and referring back to the full boards as required, the organisations assembled a merger working group in late 2023. The group was provided with terms of Reference and shared documentation and met monthly. It consisted of:

• two chairs
• two additional directors from each organisation (at least one of who would attend working meetings)
• the shared CEO.

Later we added a legal advisor, and consultant to facilitate the process. We also engaged branding, human resources and other supports as required.

The shared purpose

As one of the first steps, we agreed on a high-level vision and strategy document with a shared purpose to inform everything that followed: “To create a future where our clients – every person in Queensland and New South Wales impacted by arthritis – receive the support, resources, and care they need to live life to the fullest, free of pain. We also support research to increase our knowledge of arthritis and find better ways to prevent, treat and ultimately cure the condition.”

We prepared a delivery plan, and a business case covering the financial model and client numbers and impact, in late 2023 to early 2024, and while these were internal documents, the latter served as the why – the North Star – for the project.

Membership and corporate structure

The lawyers suggested using a "double change of member" approach, where a new holding company would become the only member (or owner) of both state organisations. To make this happen, both organisations had to change their constitutions. Because Arthritis NSW has a public membership model, extra consultation and careful planning were needed.

Stakeholder consultation

From the outset, getting buy-in from donors, volunteers and staff required planned engagement. Staff were kept abreast of merger discussions, while they, along with clients and donors, saw the tangible impacts of collaboration – increased services, combined campaigns, shared learning and resources etc.

By mid 2024, as the collaboration was firmly established and benefits evident, the potential for a full merger was first discussed with select stakeholders in hypothetical terms, and opinions, questions and answers were shared.

New branding

A fresh brand was essential to reflect the changes. One of the key roles for donors, members and volunteers was helping shape a brand that connected with the shared purpose, and looked to the future. Opinions were sought widely and many options were considered. The Arthritis Movement name, a bold, vibrant palette and a flowing logo got universally positive feedback and were locked away until the right time.

Key decisions

Through 2024 the merger working group – with reference back to the full boards – continued to meet monthly, prepare documentation and work through decisions on issues such as

• chair of the merged entity
• board and committee composition
• brand identity
• management of assets
• approaches to policies, risk, key suppliers and other corporate considerations.

By the time formal notice of meetings and plans was shared with members in late 2024, most stakeholders knew which way the winds were blowing. Voting at general meetings showed there were few surprises and approval was near universal. The gradual, inclusive approach had proved invaluable in minimising friction and ensuring broad support.

Arthritis NSW held an Extraordinary General Meeting on November 1, 2024, and the resolutions to proceed with the merger passed unanimously. The Arthritis Queensland equivalents had passed the week before. Now it was a question of implementation. We notified all stakeholders the next day and launched the new brand in January 2025.

Organisational registrations

The corporate process required methodical work with the ACNC, the ATO and ASIC each side of Christmas. Updating constitutions, governance structures and memberships were all crucial to maintaining legal standing and trust. Though administrative, these processes are vital for transparency and accountability and required careful guidance by legal advisors and company secretaries. The Arthritis Movement (TAM) was registered and granted charitable status with the ACNC. A merger deed and other transition and merger documents were signed on February 9, 2025, to finalise the merger. Group reporting status, fundraising licences and a raft of other procedural and operational steps followed.

Operational merger steps

I would love to be able to say that the signing of documents on February 9 this year marked the end of the merger. But it was only an end. Now attention has turned to the newly merged board norming, storming and performing, the drawing up of a more thorough strategy, and myriad operational steps, including:

• contract harmonisation and employee transfer
• asset consolidation
• audits
• supplier consolidation
• systems integration (so many systems!).

Today we are still finalising some of these, and celebrating each new milestone. It’s a lot of work, and we’re incurring considerable costs, but step by step we are moving towards one efficient and harmonised organisation.

Outcomes

Since the merger, supporter and client endorsement has been strong. With reduced administrative overlap, more funding can now directed to services and research. Most importantly, the increased client numbers and impact seen through the collaboration have been locked in and extended.

Staff engagement has been monitored and remained high throughout the process. Rather than lose staff, we were able to transition staff from admin to service delivery, providing continuity, increased service capacity, and reassurance to local supporters. Early responses suggest that stakeholders appreciate the smoother, more unified approach.

There is a wonderfully positive energy throughout the organisation and the lofty goal in the shared purpose feels achievable.

Leadership reflections, challenges, mistakes and lessons learned

Guiding this merger required drive, strategic foresight and open dialogue, and it was great to work with complementary skill sets in the merger working group. For me as CEO it was a rollercoaster ride and I appreciated having external sounding boards including my colleagues at Leaders For Impact and others who had merger experience. It was a process I enjoyed and grew through, and it’s thrilling to see the energy in the merged entity.

The biggest challenges – which I feel we dealt with well – included:

• managing the various personalities
• keeping the two organisations synchronised
• aligning, communicating with and engaging with the two boards, who each had their own systems, methods of working, and meeting cadence
• maintaining business as usual while investing time and energy in the merger.

Mistakes made included:

• underestimating the interstate rivalry (State of Origin should have given me a clue!)
• assuming everyone was on the same page on some projects rather than bringing all key considerations into the light of merger working group forum early
• not engaging some stakeholders early enough in the consultation process
• not having some of the tougher conversations (on roles, suppliers, brand) earlier
• underestimating the time required for processing applications through the ACNC and the ATO – it seems those timelines have recently increased.

Thankfully none of these mistakes derailed the process, and the opportunity for the merged organisation to help many, many more people who have arthritis remains our North Star.

Other valuable lessons learned included:

• Start with a shared purpose
• Capitalise on opportunities to move things forward that happen to arise, e.g. a change in personnel
• Gather the right team, including an experienced guide – this is important
• Over-prepare and over-communicate
• Embrace the unexpected lessons that arise and enjoy the journey!

Takeaways for other leaders

A merger can seem daunting, but it can also spark renewal and greater impact. By defining a shared purpose, engaging all stakeholders, designing a plan and creating a cohesive identity, the Arthritis Movement has formed a platform from which to support more people and drive innovation. Our story as the Arthritis Movement continues to evolve, but we hope it encourages other organisations to consider bold collaborations that amplify strengths and result in meaningful change.

More information

The Arthritis Movement

ICDA’s merger resources | Mergers primer for the NFP sector