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More information regarding the merger and how it may affect employees, supporters and volunteers

What expenditures will be reduced as a result of the merger?

What are the opportunities that this merger makes possible?

As a volunteer for one of the organizations, how will this affect my work?

Will the merger create new volunteer opportunities?

As an employee of PPL or LNB, will I still have the same job?

We expect current employees to retain their same position assuming that current funding remains stable.

How will the agencies blend organizational cultures?

Since merger discussions began, there have been opportunities for staff from both organizations to interact and gain familiarity with each other. Susan Baldwin of PPL and Delroy Calhoun of LNB have developed a long-range plan for staff orientation and program integration with the goal of creating a positive, shared culture.

Why aren't PPL and LNB coming up with a new name and brand?

One of an organization's greatest assets is stakeholder and public recognition of its name. Studies show that it is more difficult to start and support a new name, than it is to build on an existing positive brand. After careful consideration, the joint LNB-PPL Task Force determined that the “equity” in PPL's name was strong enough to support both organizations as one. The PPL tagline, “Helping People Help Themselves,” accurately describes the work of PPL and LNB and so the decision was made to retain the PPL name and tagline.

Is a merger consistent with the strategic direction set by PPL?

Yes, it is a good strategic fit as both organizations are committed to strengthening our impact by integrating programs and projects, while also filling service gaps that we know are important to help low-income individuals and families become more self-sufficient. Our commitment to build effective partnerships with other organizations will continue, but we see value in becoming an even broader multi-service agency focused on unifying with a like-minded agency with a core mission of helping people help themselves.

How do the sources of revenue for the organizations compare?

LNB PPL Merged – 2006 Earned income $1,168,735 (58%) $9,596,486 (65%) $10,765,221 (65%) Grants/contributions $ 816,462 (41%) $4,725,928 (32%) $5,542,390 (33%) Interest/investments $ 19,450 (1%) $363,482 (3%) $ 382,932 (2%)

What expenditures will be reduced as a result of the merger?

The salary of one Executive Director. Accounting and fundraising/communication activities will also be integrated. LNB contracts for some services that PPL provides through centralized support staff (technical support, some maintenance and repair activities). Current LNB contracts would be honored, but some of these activities may be shifted to PPL staff as appropriate over time.

Is there an estimate of one-time merger costs and sources to help defray those costs?

We anticipate the merger will cost approximately $200,000. Several funders have indicated that they would provide support for merger-related costs.

Is there any program overlap?

LNB offers a strong Adult Basic Education (ABE) focus at the Loring Nicollet Center, which can enhance the ABE services at PPL's Learning Center. This is an area of high need for many of the people served by both agencies. In other ways, the services differ. PPL's direct employment training programs (PPL Industries and PPL SHOP) and employer-focused classroom training are different from the assessment and placement service offered by LNB. Program staff has begun to explore how this comprehensive set of services can be managed in a way to create a continuum of services for adults facing a range of employment-related barriers.

How will the merger affect United Way funding?

United Way is one of PPL and LNB's largest shared funders. In meetings during merger discussions, United Way provided encouragement for the process and support for the merger. Similar to all funders, it indicated that the merger would not trigger funding reductions, but that funded programs would have to continue to meet giving guidelines and maintain quality standards over time.

What contingency plans are in place to respond to funding changes?

Based on feedback we heard from funders during merger discussions, we do not anticipate any major changes. In the case of a changed funding landscape, however, we do have cash reserves from LNB, which will be able to be drawn at the discretion of PPL management.

How does this help advance your organizations' missions?

This advances the mission as both organizations are committed to strengthening impact by integrating efforts, while also filling service gaps that we know are important to help low-income individuals and families become more self-sufficient. We see value in becoming an even broader multi-service agency focused on a core mission of helping people help themselves.

What are the opportunities that this merger makes possible?

For more than 50 years, LNB has offered high quality educational and employment services in partnership with the community, including early childhood education, elementary age tutoring, alternative high schools, adult basic education classes, as well as employment counseling for youth and adults. These programs will complement PPL's 35 years of work in developing affordable housing, providing family support services and offering employment training and living wage job placements. The merger will broaden service for current participants, and in the future, provide greater access to enhanced programming. . We are confident that the PPL-LNB merger helps address some of the community's most pressing problems.

As a volunteer for one of the organizations, how will this affect my work?

We expect volunteer jobs and responsibilities to remain the same at both organizations.

Will the merger create new volunteer opportunities?

As nonprofits are always in need of dedicated volunteers, with the increased programming and sites, we expect that there will be opportunities for “cross-over” volunteer assignments.

 

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