Redwood City-based Gatepath and Palo Alto-based Abilities United announce merger

“We believe the merger will provide an opportunity to scale our administrative functions, allowing additional resources to be dedicated to direct care staff and the important programs they provide,” he said. “We all know what costs look like from rent and operations generally, staffing — all that has gone up significantly, which means nonprofits like ours have worked hard to stay ahead of that challenge and doing things like merging and providing unique opportunities and sharing resources is one way of creatively addressing that.”

Neider noted that California’s disabilities system saw significant cuts around the time of the 2008 great recession and “never recovered.” The cuts amounted to $1.1 billion over the last decade, making California last in the nation in terms of spending per person with developmental disabilities, according to Gatepath.

“We have strategically and proactively addressed the financial challenges brought about by California’s underfunding of the developmental disabilities systems,” Jennifer Wagstaff-Hinton, Abilities United board president, said in a press release. “We explored many options, all aimed at ensuring the individuals and families we serve would continue to receive the services they have counted on from us.”

Gatepath primarily serves San Mateo County and Abilities United largely operates in Santa Clara County, and the merger will expand the reach of the nonprofits’ respective programs. For example, Gatepath launched one program last year in Burlingame called Grins ‘n’ Giggles, which offers party space with specialized play equipment for special needs children ages 2 to 5, and now that program may also be offered in Palo Alto.

Both nonprofits offer adult employment programs, which will be strengthened by the merger, Neider said.

“It gives us greater visibility with employment partners so it allows us to enrich those relationships with Google, Facebook and Bon Appétit (catering and food management services) and maybe build more robust employment programs,” he said.

Neider also said there’s a “huge need” for more preschools and the merger may allow the nonprofits to open a new preschool on the mid-Peninsula in addition to the ones they already operate.

Neider added the nonprofits will still employ about the same number of people post-merge, which is 300 collectively. Some administrative positions may be affected, but no programming positions.

The nonprofits collectively operate 13 program sites in the two counties. Those will all remain up and running and the number could grow before long.

“We envision a world where people of all abilities are fully accepted, respected and included in all aspects of society,” Elaine Cohen, Gatepath Board of Directors chair, said in the release. “Jointly, we are in a better position to make this vision a reality for our community’s most vulnerable citizens.”

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