The duties of a charity trustee, as set out in CC3 the essential trustee involve acting in the best interests of the charity, but more importantly of the charity’s beneficiaries. Once that may have been a focus on continuing the charity at all costs but rising demand for services, financial pressures and expectations for greater impact are prompting trustees to consider partnership and consolidation as part of long-term sustainability strategies.
Some recent examples:
Maggie’s and the Ruth Strauss Foundation
In May 2026, Maggie’s and the Ruth Strauss Foundation (RSF) announced that they would merge, combining resources, expertise and staff into a single organisation. Maggie’s has a turnover of around £30m and RSF £2m.
Both charities already worked closely and shared similar aims—supporting people affected by cancer and their families. By merging:
- RSF staff will transition into Maggie’s, ensuring continuity of services such as family support and training programmes
- The combined organisation aims to extend reach and support more people across the UK, including through both physical centres and online services
- Long-term sustainability and service coverage is enhanced by leveraging Maggie’s national infrastructure and RSF depth
- Distinctive features core to RSF such as Red for Ruth will continue.
FareShare and the Felix Project
FareShare and Felix announced plans to merge in September 2025. Working to help get food to families FareShare has a national network and Felix a London focus.
The charity will go forward with the Felix Brand (tweaks promised) and the FareShare charity number. The last published accounts reported approximately £20m of income for Fareshare and £15m for the Felix project.
FareShare’s accounts promise a bigger, bolder charity with one clear mission: to rescue more good food and get it to the people and places that need it the most, strengthening communities through food.
By merging, the charity takes advantage of:
- FareShare’s trusted long-standing expertise in food sourcing and logistics, with national reach
- The Felix Project’s ability to be a dynamic challenger, building depth in the London community alongside rapid growth
- The ability to streamline operations to reduce duplication.
RefuAid and Breaking Barriers
In February 2025 Breaking Barriers announced a transformation programme integration with RefuAid to strengthen employment support for refugees in the UK.
RefuAid is a collective fund operating under the auspices of Prism The Gift Fund, who run an interest-free lending programme dedicated to helping refugees in the UK complete their training and licencing so they can work in their field in the UK.
By joining forces: Breaking Barriers will:
- Expand their reach nationally
- Add structured language tuition and re-accreditation guidance to their current specialist advice services.
RefuAid can:
- Focus on expanding its financial support services, offering interest-free loans to refugees to cover the cost of licensing, training, exams, housing, education and family reunification.
Underlying all of these examples is the desire for greater reach, strength and national impact at time when charitable mission is both more critical and under threat. Mergers and partnership does not have to come from a position of fragility and need, but can be a proactive way to develop, improve and join up services.
They show clearly that there is not just one way to operate in the ‘best interest’s of a charity’.
Decisions may be driven by beneficiary need for example, the desire to scale frontline services, the financial context of one or both partners looking for a robust response to external economic pressures, as well as being a potential opportunity to simplify governance or streamline administration.
How to merge
The Charity Commission updated its guidance ‘How to merge charities’ in December 2025. Several practical lessons emerge from the guidance:
1. Align purpose first
The Charity Commission reports that mergers should only proceed where charities have compatible objects and missions, this is highlighted in the strategic and beneficiary risk below.
2. Consider all the evidence
Boards must put beneficiaries first and how they achieve their charitable objectives, decisions should not just be about organisational survival but improve (or protect) the delivery of services.
The decision rests with trustees, who must assess benefits vs costs, risks and alternatives.
3. Strengthen financial oversight and manage risk
Strategic and beneficiary risk is a fundamental consideration for trustees. A merger may fail to deliver improved outcomes for beneficiaries or could even disrupt existing services if not carefully managed. Trustees must ensure that the merger enhances, or at least preserves, the charity’s ability to meet its objects. Misalignment in strategy or vision between the merging organisations can dilute impact and undermine the purpose of the
combined entity.
Legal and regulatory risk is another critical area. Trustees must confirm that their charity has the legal power to merge and understand whether Charity Commission consent or other approvals are required. Complex issues can arise around restricted funds, permanent endowment and property transfers, all of which must continue to be applied in accordance with legal requirements. Failure to follow correct governance processes can invalidate decisions or delay the merger.
Financial and liability risk often presents hidden challenges. Trustees need to conduct thorough due diligence to identify any liabilities being transferred, including debt, contractual obligations or contingent liabilities. Pension liabilities in particular can be significant and sometimes crystallise on merger. In addition, merger costs—such as professional fees, restructuring and integration—can exceed expectations if not carefully planned.
People and employment risk should not be underestimated. Mergers may trigger TUPE obligations, leading to changes in employment terms, redundancies or restructuring. There is also a real risk of losing key staff or leadership during the transition. Differences in organisational culture can create friction, affecting morale and ultimately the effectiveness of the merged charity.
Governance and control risk arises where there is uncertainty over leadership and decision-making. Trustees must agree in advance how the new board will be structured, how decisions will be made and how power will be balanced between the merging organisations. Without clarity, there is a risk of conflict, inefficiency or weakened accountability in the new entity.
Operational and delivery risk relates to the practical challenge of combining systems and services. Integrating finance systems, IT platforms, contracts and service delivery models can disrupt day-to-day operations if not carefully managed. Trustees need to ensure there is a clear implementation plan that maintains service continuity throughout the process.
Reputational and stakeholder risk can also be significant. Beneficiaries, funders, staff and partners may react negatively if the merger is poorly communicated or creates uncertainty. Confusion over branding, services or organisational direction can damage confidence and support. Effective stakeholder engagement and communication are therefore essential throughout the merger process.
Finally, execution and timing risk is a common issue in practice. Mergers often take longer and require more resource than anticipated, particularly where legal or regulatory complexities arise. Delays can increase costs, reduce momentum and create uncertainty for staff and stakeholders. Trustees need to ensure the merger is supported by a realistic timetable, clear governance and sufficient capacity to deliver.
To merge or not?
The guidance has a very clear checklist to work through and support trustees in identifying whether merger is the correct approach. However, collaborative working may provide another solution while retaining the charity’s separate legal identity. There is Charity Commission guidance in this area: Collaborative working (CC34) but the key principals remain the same, trustees should understand who they are working with, ensure their purposes align, manage operational and financial risks, and act in the best interests of their beneficiaries.
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key changes rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
