Another high-profile merger highlights New York nonprofits’ efforts to expand

A merger between Bailey House and Housing Works is the latest in a string of nonprofit mergers in recent months.
A merger between Bailey House and Housing Works is the latest in a string of nonprofit mergers in recent months.
Illustration by Zach Williams
A merger between Bailey House and Housing Works is the latest in a string of nonprofit mergers in recent months.

Another high-profile merger highlights New York nonprofits’ efforts to expand

It’s been a busy summer.
July 16, 2018

Two New York nonprofits are combining forces to confront the HIV/AIDS epidemic in a broader way by combining the advocacy, businesses and services of Housing Works with the supportive housing and health programs of Bailey House.

The new partnership will also create a new housing development enterprise under the Bailey House brand, according to a July 12 press release. While the 35-year-old organization will become a wholly-owned subsidiary of Housing Works, Bailey House will be able to expand its efforts in low-income housing under the deal, which is scheduled to close on Nov. 15, Crain’s New York reported.

Beyond the dollars and cents of the merger are more lofty considerations, according to the press release. The idea that housing and healthcare are fundamentally related was central to Bailey House’s identity as the first organization in the country to address homelessness among people living with HIV/AIDS, according to Daniel Tietz, CEO of Bailey House – values that are also reflected in the name of Housing Works.

“This partnership provides us the opportunity to jointly develop new, ground-up supportive and affordable housing under the Bailey House brand,” Tietz said in the press release. “Together, we will help more low-income New Yorkers achieve the best possible health by expanding housing, healthcare, and behavioral health services.”

Housing Works had about $23.2 million in revenue and 500 employees in fiscal year 2017, compared to Bailey House’s $17.8 million in revenue and 150 employees, according to Crain’s.

The two organizations have shared a commitment to working to end HIV/AIDS in New York by 2020. To that end, clients of both organizations will experience expanded services offerings including access to primary medical care, according to the press release. Bailey House’s behavioral health program for example, which includes both New York State Office of Mental Health- and Office of Alcoholism and Substance Abuse-licensed behavioral health clinics in East Harlem, will become a part of the 28-year-old Housing Work’s health center.

“With new housing resources and improved access to primary care and mental health services, the combined entity will broaden its non-judgmental, wrap-around care model to more communities in need,” Housing Works COO Matthew Bernardo said in the press release.

The deal is the latest high-profile collaboration in recent weeks among New York City nonprofits. On July 10, Boys and Girls Harbor and Supportive Children’s Advocacy Network announced they were taking steps towards a merger, with Lew Zuchman serving as executive director of both organizations as of July 1, according to a press release. Also on July 10, NYN Media reported a deal between Urban Resource Institute and Center Against Domestic Violence aimed to create the largest provider of domestic violence shelter services nationwide’

Reaching the most people possible with the most services was a named motivation in some mergers. But others were more about safeguarding a legacy and making sure that the retirement of a leader does not affect programming. Such was the case in the merger of Partnership for Children’s Rights and Mobilization for Justice.

They announced the move in a June 11 press release that stated that Warren Sinsheimer, founder of Partnership for Children’s Rights, was behind the idea of combining the two organizations. He wanted to see more services for more people come about before his retirement, NYN Media reported June 15.

“At age 91, I thought it was time to retire, but I wanted to find (the organization) a home that would not only carry on our work, but also expand it,” he said in the press release. “With a long history of defending the rights of people with disabilities, (Mobilization for Justice) was the clear choice.”

Zach Williams
Zach Williams
is a staff reporter at New York Nonprofit Media, a sister publication of City & State. He covers nonprofit organizations in New York.
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