Think Detroit Police Athletic League will have combined revenue of more than $2.8 million. It will retain all employees and all programs the two organizations now provide, as well as the help of city police officers to serve as the public face of the nonprofit.

The consolidated organization will serve one of every 15 Detroit children, said Think Detroit CEO Dan Varner who will become CEO of the combined nonprofit.

“This really is a merger about running better programs for more kids,” he sad. “We felt we could eliminate some redundancies and build on the best of both programs.”

PAL and Think Detroit were recruiting many of the same children and approaching many of the same funders for financial support, said Ronald Thomas, assistant to the president on PAL’s board and manager of corporate alliances at Ford.

Established 30 years ago, PAL provides sports programs and after-school tutoring to about 8,000 Detroit children, ages 5-16. It also operates two community centers in the city with open gyms and computer labs. It reported revenue of $1.36 million in fiscal 2004.

Eight-year-old Think Detroit provides sports and youth leadership camp programs each year to about 5,000 children, ages 4-19. Its revenue last year was $1.5 million.

Merging the two organizations should create cost savings of between $200,000 and $400,000, through the consolidation of vendor contracts and locations, Varner said.

PAL leases space at the Northwest Activities Center, and Think Detroit leases space on Willis Street off Woodward.

“We’ve been invited to stay both places and also are looking at a new place,” Varner said.

He hopes to find a new building with a larger warehouse space for sports equipment and an indoor gym or adjacent park over the next two months, he said.

Efficiencies will allow the new nonprofit to serve more children and also to hire a third fundraising staff member.

PAL historically has raised money for its programs through special events and Think Detroit has typically gone to individuals, corporations and foundations for financial support, he said.

“Combining the two gives us a very diverse revenue stream, something both organizations needed,” said Varner. “Inside of six months we should start to see more money.”