The number of charity mergers is at its highest recorded rate, driven by small charities seeking “safe harbour” within larger or similar organisations amid funding concerns and strategic decisions around growth.

Consultancy Eastside People’s latest Good Merger Index found there were 94 mergers involving 183 charities between May 2024 and April 2025.

This is the highest number since the consultancy began its Index 12 years ago and is a 49% rise on the previous year. The latest figure is almost double the merger activity seen in 2022/23 in the aftermath of the Covid-19 pandemic.

A factor has been small charities taking strategic decisions to merge with often stronger, larger organisations, or those offering similar support, as they look to pursue growth, digital transformation, improve efficiency and wider impact.

This is particularly the case among small charities in the health, social care, disability and family support sectors, Eastside People found.

An example of this over the year looked at has been the merger of Mental Health Innovations (MHI) and The Mix to create a single digital mental health offer for young people.

MHI chief executive Victoria Hornby said: “We realised we were competing for the same funding, even though we were trying to solve the same problems.

“It made sense to join forces - not just to be more efficient, but to be more impactful.”

The spike in charity mergers involving small organisations has also been driven by funding concerns.

More than half of charities being acquired or merged where in deficit the previous year “confirming that financial necessity is increasingly driving organisations to seek a stable partner”, said Eastside People.

Childminders charity PACEY’s merger with larger children’s support charity CORAM is among examples of this taking place.

“The direction of travel in early years funding was very clear after the pandemic,” said Pacey’s former chief executive Helen Donohoe.

“We needed to act, but we needed to act in a way that protected our members and our integrity. This wasn’t about finding any partner - it was about finding the right one.”

Another factor in the increase in mergers has been consolidation among independent schools. These accounted for 13 of the 20 largest mergers amid VAT changes, cost pressures and declining fee income.

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