Why is this merger being conducted?
Whitney Young Child Development Center (WY) and Florence Crittenton Services (FCS) began exploring a merger over a year ago because the organizations have complementary services, serve the same target population of low-income families in San Francisco, and were starting the search for a permanent executive director. A merger of these two long-time and financially stable San Francisco nonprofits creates a single robust organization with an array of services for low-income-families including child care, job preparedness and parent support.
What problems will be solved because of merger?
Shrinking and unstable government funding has prompted service cutbacks and layoffs in nonprofits across California. The populations most affected by the shrinking budgets are low-income parents and their children. Combining the budgets of WY and FCS through a merger reduces overhead and administrative costs, allowing more dollars to be spent on direct services to these vulnerable populations.
What opportunities will be possible because of the merger?
- Better able to engage and fulfill our mission mandates involving children and families
- Combining program offerings results in richer, complementary menu of services
- A larger, more visible operation that will gain a different kind of respect from funders
- A more efficient operation due to reduced overhead
- A union of two strong organizations that could attract a high caliber, desirable ED
- Combining board cultures amounts to a stronger and dynamic board
- Higher level of strategic planning and thinking because of larger organization
- Larger organization means: less reactivity, more voice in community, more visibility, cost savings, better benefits, higher community impact, stronger voice when contracting with government and public dollars
- More diverse menu of services because of more stable infrastructure
- More concrete career ladder for staff, with broader skills base for all
- More focused job descriptions bring more accountability
- More comprehensive approaches bring higher impact
- More resources to invest in needed infrastructure
Why these two organizations?
WY and FCS have similar missions and philosophies, and they serve the same population of low-income San Francisco families in the Bayview and Haight districts. FCS also serves the Visitacion Valley community. They also have complimentary services. FCS provides child care to infants and toddlers while WY provides child care to pre-schoolers and after-school care for K-6 grade. In addition, FCS offers parent support programs and job preparedness, training, and referrals. A merger offers these families more comprehensive services in the communities where they live.
Are all positions secure? Will benefits change?
The FCS and WY boards project no layoffs to occur for either entity as a result of the merger. While there will be some modifications to specific positions where overlap exists, both boards are projecting that they will continue to need and utilize the services of all current employees.
Both organizations’ overall employment benefits packages are very similar and comparable. Specific to medical benefits, FCS and WY have always and will continue to make every effort to provide the best medical coverage possible within budgetary constraints. While the merged entity, with a larger employee pool, would seek the best medical coverage for its employees, due to normal business cycles and budget constraints, it is possible for the merged entity to modify plans as part of normal on-going operations.
What will the new organizational chart look like?
The new organization when fully integrated will have one Executive Director who is being hired by the joint boards. There will likely be some consolidation of departments and changes in reporting structure, but these will be determined after a full review of departments and functions, and discussions on what structure will most effectively move the organization towards its mission and vision.
Who will be the Executive Director and how will that person be chosen?
Beginning in February, the Boards of FCS and WY will form a search committee and begin the process of finding a full-time executive director. We will be using CompassPoint Nonprofit Services to guide the search process. We worked with them when hiring our two Interim EDs so they are familiar with our organization.
Will the workplace culture change?
Anytime two organizations merge, there is generally a change in workplace culture that occurs over time. In the case of WY and FCS, this change would likely occur anyway since both organizations are without a permanent ED. This individual always brings about some workplace culture changes, so these would have occurred with or without the merger.
It is important to note that both organizations have similar missions of serving low-income families in San Francisco. The commonality of the mission was an important pre-condition to both boards as they contemplated the merger.
What is the timing and plan for integration?
A plan for full integration is being developed now and will begin implementation this month. Full integration will happen slowly over the next several months.
When does the merger go into effect?
The merger is subject to regulatory approval which should occur by May 2011. Between the announcement of the merger and the effective date, there should be no difference in the services provided because each program maintains separate and distinct services. These will continue to be offered by the combined organizations. As the integration of the organizations proceeds, families should see further integration of programs and a greater array of services offered to them.
What will happen to the name of each organization?
For the short-term, both organizations will keep their names and they will appear together on necessary internal and external documents developed during integration. Both have a strong reputation and a long history in the community and we want to honor and respect the names. As part of the integration plan, a branding consultant will be brought in to work with all of us to determine a unique new name and logo for the merged organization.
How will child care be affected? Will the One Stop still operate? Will it change?
The two organizations will continue to operate an infant/toddler care at the Hayes Valley site and through a family child-care network, a pre-school center at the Masonic site, and a pre-school/after-school center at the Bayview site. One opportunity provided by the merger is that families may enroll their infants in the organization and those children can stay enrolled through the sixth grade after-school program. This allows us to provide a continuum of learning for children from infancy through sixth grade in a healthy and safe environment. It also provides parents of these children to have on-going assistance in developing parenting skills at each stage of their children’s early years.
The One Stop will continue to operate at the Visitacion Valley area with the possibility of expanding its services through potential integration into WY centers.
Will you be doing something differently that will require contract changes this fiscal year? Next year?
We do not anticipate contract changes this fiscal year ending June 30, 2011. We are talking to the two funders who support both organizations (CDE and DCYF) to determine how to structure the contracts for next fiscal year. We do not expect there to be a reduction in the number of children served by both organizations.
What will be the impact on our community?
Low-income families in the Bayview and Haight-Ashbury communities will have the opportunity to access subsidized care for their children from early infancy through pre-school in one organization. Both FCS and WY are committed to providing the highest quality child care and share the central belief that raising children in a stimulating and creative environment with positive role models will result in a more stable teenagers and adults. Ultimately, this leads to stronger communities.
How did JP Morgan Chase help make this happen?
JP Morgan Chase provided the lead funding that allowed FCS and WY to hire an experienced consultant to facilitate the merger discussions. The Department of Children, Youth and Families in San Francisco also made a significant contribution to assist with the merger process.
Press Contact:
Mim Carlson, FCS Interim Executive Director
415-567-2357 ext. 104
mcarlson@fcs-sf.org
Cory Pohley, WYCDC Interim Executive Director
415-821-3590
cpohley@whitneyyoungcdc.org
