When will we start to see buyouts in the nonprofit sector?

There are a number of tools that exist in the for-profit sector that lead to greater efficiencies.  Some are about raising capital – for example, the more successful a for-profit business gets, the easier it gets to raise capital.  The opposite can be true in the nonprofit sector – where early donors can feel left behind as an organization starts to grow.

Another missing tool is buyouts.  When you buy a for-profit company, you buy their staff, assets, and revenue stream.  On the nonprofit side, when funders are dedicated to a particular organization or its leader, the revenue stream may disappear as a result of the acquisition.

I’m not sure this is the only reason we don’t see buyouts in the nonprofit sector, but it might be part of the reason.