Mergers, Partnerships Create New Opportunities for Nonprofit Fitness Facilities

The consolidation talk currently making news in the health club industry is not reserved for the for-profit club market. Nonprofit fitness and recreation facilities also are looking at merger possibilities as well as partnerships with other organizations and businesses.

Tough economic conditions have left many nonprofits struggling to remain solvent during the last few years. This inevitably led to the closing of some facilities, but others have found that merging with another local nonprofit has allowed them to continue operating.

For the Lee County (FL) YMCA, a May merger with neighboring South County YMCA offered a way to reduce overhead and find financial stability while continuing its services to the community. Under the new partnership, Lee County will continue to operate its two facilities in Fort Myers and Naples, and with the help of another local nonprofit organization, the Lee County Y plans to increase its reach by opening another facility this August in Cape Coral. The new branch will be located in a former Shriners Club building that the Cape Coral Kiwanis Club is buying with the intention of having the YMCA operate the new center’s programming.