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In contrast, a merged or consolidated group has the solemnity of a corporate transformation which cannot be easily unraveled. Other Types of Strategic Alliances Merger, consolidation, acquisitions, and the creation of a federation involve a substantial level of commitment – but associations need not go so far in order to engage in alliances with one another.
Nonprofit corporations may enter into other strategic alliances that are temporary or permanent, and allow both entities to “test the waters” before binding themselves to a more involved or permanent arrangement.
Most affiliation agreements include provisions that address the following: term and termination of the relationship; use of the association's intellectual property; the provision of management services; treatment of confidential information; coordinated activities; and tax and/or financial issues, among other provisions.
Where an affiliated association fails to adhere to the terms of its affiliation agreement with the national association, the affiliate could lose privileges (, loss of ability to use the association's intellectual property), become disaffiliated, or suffer some other penalty.
They operate under management agreements that typically can be terminated with relatively short notice or at the conclusion of a stated term.