In part one of this conversation, our panel of experts discussed legal, regulatory, and financial concerns during transitions in the nonprofit sector. Today, on part two, the discussion shifts towards organizational culture and communication.

Michealle Gady, Founder, President & CEO of Atrómitos, LLC, has more than 20 years of experience helping health and human service providers, government agencies, advocates, and philanthropies create lasting community change.
Jacob Ferrari is a partner at The Apex Law Group, PLLC, and works with nonprofits at every growth stage including formation, application for tax exemption, board governance, and corporate exit plans.
Michaela Kay is a CPA who serves as the practice leader for BDO's Seattle office, focusing on single audits, program specific audits, and financial statements audits for those in the life sciences, social services and housing industries.
Julie Morris currently serves as Interim Executive Director at Wellspring Family Services in Seattle. As a professional interim leader, she specializes in helping organizations navigate periods of change and transition.

Key Takeaways

• Without for-profit shareholders, the traditional metrics for valuation don’t necessarily apply in the nonprofit sector. How should a nonprofit, and its assets, be valued during a merger or acquisition?
• When it comes to finding complementary organizations, what does the “dating process” look like for nonprofits, and what can be expected during and after the “honeymoon” phase? Where do organizations stumble once the ink is dry?
• What is the best way to navigate staff concerns during a transition? When should the conversation expand beyond board members to include staff—especially leadership—without kicking the rumor mill into high gear?

Whether your organization is considering a merger, acquisition, or asset transfer, keep in mind that these decisions involve legal, financial, and operational complexity that most organizations don't navigate every day. Leaders striving for a smooth transition need to know when to bring in outside expertise, act from a position of strength rather than crisis, and recognize the human element of organizational change.

If this episode resonated with you, please share it with your board, leadership team, or a colleague who might be wrestling with these questions.

Atrómitos Knowledge Hub Promo

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This podcast is a production of Atrómitos, a woman-owned boutique consulting firm creating a better way for our health and human services provider clients to achieve their goals by strengthening internal operations, enhancing financial stability and evaluating public policies.

Want to know more about the firm behind the podcast?

• Atrómitos, LLC Website: https://atromitosconsulting.com
• Follow us on LinkedIn: https://www.linkedin.com/company/atromitos-llc/
• Subscribe on YouTube: https://www.youtube.com/@atromitosllc
• Get Emails: https://atromitosconsulting.com/atromitos-way/#subscriber

In addition to our podcast, we've developed additional resources to improve your understanding of both long-standing and emerging issues important to leaders in the health and human service provider, government and philanthropic sectors.

Our articles, policy briefs and infographics provide you with information you can use to reach your organization’s goals.

• Atrómitos Way Podcast Website: www.atromitosconsulting.com/atromitos-way
• Follow us on LinkedIn: www.linkedin.com/showcase/the-atrómitos-way
• Articles: https://atromitosconsulting.com/atromitos-way/progress/
• White Papers: https://atromitosconsulting.com/atromitos-way/unlocking/

With many nonprofits facing existential threats due to revenue loss, federal funding freezes, and policy shifts, organizations are forced to operate on reserves while waiting for clarity that may never come. Now more than ever, it is crucial that nonprofits reframe their views on mergers and acquisitions—as well as the many alternatives.

On today’s episode, Atrómitos president, founder, and CEO Michealle Gady is joined once more by Michaela Kay of BDO and Jacob Ferrari of Apex Law Group. Julie Morris, interim executive director of Wellspring Family Services, rounds out our panel of experts to discuss the complexities of nonprofit mergers and structural changes in the current challenging landscape.

Want a refresher on Michealle, Jacob, and Michaela and their conversation detailing the report on the sustainability of human services contracting in Washington state? Listen (and read) here.

Julie Morris is the Interim Executive Director at Wellspring Family Services in Seattle, WA. As a professional interim leader, she specializes in helping organizations navigate periods of change and transition. Julie has practical experience leading a nonprofit through a program and asset transfer and is deeply committed to solutions that prioritize community impact and long-term sustainability over organizational ego.

Key Takeaways

• What are our experts seeing right now in terms of organizational stability and financial health in the nonprofit sector, and when should a nonprofit leader start considering structural changes rather than weathering the storm?
• What's the difference between a merger, an acquisition, and an asset transfer in the nonprofit context? When do the alternatives—such as fiscal sponsorship, management services agreements, collaborative partnerships—make the most sense?
• What does financial due diligence look like for nonprofit transactions? How do restricted funds and grant obligations complicate these transactions?

This episode is part one of a two part deep-dive, so be sure to tune in next month to hear the rest of this conversation. If you’re an executive director listening to this episode and thinking, “This might be us,” you won’t want to miss it.

Atrómitos Knowledge Hub Promo

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This podcast is a production of Atrómitos, a woman-owned boutique consulting firm creating a better way for our health and human services provider clients to achieve their goals by strengthening internal operations, enhancing financial stability and evaluating public policies.

Want to know more about the firm behind the podcast?

• Atrómitos, LLC Website: https://atromitosconsulting.com
• Follow us on LinkedIn: https://www.linkedin.com/company/atromitos-llc/
• Subscribe on YouTube: https://www.youtube.com/@atromitosllc
• Get Emails: https://atromitosconsulting.com/atromitos-way/#subscriber

In addition to our podcast, we've developed additional resources to improve your understanding of both long-standing and emerging issues important to leaders in the health and human service provider, government and philanthropic sectors.

Our articles, policy briefs and infographics provide you with information you can use to reach your organization’s goals.

• Atrómitos Way Podcast Website: www.atromitosconsulting.com/atromitos-way
• Follow us on LinkedIn: www.linkedin.com/showcase/the-atrómitos-way
• Articles: https://atromitosconsulting.com/atromitos-way/progress/
• White Papers: https://atromitosconsulting.com/atromitos-way/unlocking/

In 2024, the Department of Commerce contracted with Atrómitos to answer a critical question: are the contracting structures in Washington state sustainable for human service providers? The findings of that nine-month study are sobering, and today’s episode of the Atrómitos Way is a deep dive into not just the contents of the report, but the wider implications for communities and a potential path forward for human service providers of Washington state.

Michealle Gady, Founder, President & CEO of Atrómitos, LLC, is a policy strategist with over 20 years of experience driving systemic change in health equity, social justice, and community empowerment.

Michaela Kay is a CPA who serves as the practice leader for the BDO Seattle office, focusing on single audits, program specific audits, and financial statements audits for those in the life sciences, social services and housing industries. Her two years working for World Vision as a lead senior accountant provide her with the ability to understand and relate to her clients on a practical level.

Jacob Ferrari is a partner at The Apex Law Group, PLLC. His primary practice works with nonprofits at every growth stage including formation, application for tax exemption, board governance, and corporate exit plans. He regularly speaks and serves on committees effecting the nonprofit community and works to better the nonprofit regulatory environment. Jacob’s goal is to care for his clients as much as his clients care for the community around them.

Key Takeaways

Financial crisis: Cost-based reimbursement, inadequate indirect cost rates, and delayed payments create a "starvation cycle" that prevents providers from investing in staff, infrastructure, or building financial reserves.

Structural barriers: Complex applications, inconsistent requirements across agencies, limited negotiation opportunities, and extensive compliance burdens disproportionately impact smaller, community-based organizations.

Human impact: These systemic issues result in high staff turnover, barriers for "by-and-for" organizations serving marginalized communities, and the risk that qualified providers cannot afford to contract with the state despite clear community need.

The full report is available on the Washington State Department of Commerce w

Atrómitos Knowledge Hub Promo

--

This podcast is a production of Atrómitos, a woman-owned boutique consulting firm creating a better way for our health and human services provider clients to achieve their goals by strengthening internal operations, enhancing financial stability and evaluating public policies.

Want to know more about the firm behind the podcast?

• Atrómitos, LLC Website: https://atromitosconsulting.com
• Follow us on LinkedIn: https://www.linkedin.com/company/atromitos-llc/
• Subscribe on YouTube: https://www.youtube.com/@atromitosllc
• Get Emails: https://atromitosconsulting.com/atromitos-way/#subscriber

In addition to our podcast, we've developed additional resources to improve your understanding of both long-standing and emerging issues important to leaders in the health and human service provider, government and philanthropic sectors.

Our articles, policy briefs and infographics provide you with information you can use to reach your organization’s goals.

• Atrómitos Way Podcast Website: www.atromitosconsulting.com/atromitos-way
• Follow us on LinkedIn: www.linkedin.com/showcase/the-atrómitos-way
• Articles: https://atromitosconsulting.com/atromitos-way/progress/
• White Papers: https://atromitosconsulting.com/atromitos-way/unlocking/