You are here

Social Service Mergers: Hope Services & Skills Center

Social Service Mergers: Hope Services & Skills Center

By
Victoria Chang, Walter Powell
2008|Case No.SI104

The case study discusses San Jose, California-based nonprofit HOPE Services’ merger with Santa Cruz-based Skills Center. Thanks to the merger with Skills Center, two additional acquisitions, and the development of new business ventures—HOPE had increased in size to a staff of more than 600 and an annual budget of $38 million. Supporting revenue was derived from 56 percent government contracts, 29 percent program service revenue earned from commercial projects, 12 percent philanthropic support, and 3 percent indirect support from miscellaneous sources. All parties believed that the merger, completed four years previously, had been an overall success. But in common with most for-profit and nonprofit mergers, especially in social services, the change was not without its costs and challenges.

This material is available for download by current Stanford GSB students, faculty and staff as well as Stanford University Alumni. For inquires, contact the Case Writing Office.