One strategy your nonprofit can benefit from is targeting sharing resources. This could include everything from office space and equipment to utilities, software, and even staff members. By pooling assets with like-minded organizations, you can reduce overhead costs, eliminate redundancies, and improve overall operational efficiency.
Shared services can also extend to professional expertiseโsuch as legal, IT, or accounting supportโallowing nonprofits to access high-quality assistance without bearing the full cost. These collaborations often lead to stronger partnerships, mutual referrals, and greater collective impact.
Take a closer look at how joining one or more organizations has the potential to enhance efficiency, increase financial flexibility, and free up more time and funding to focus on delivering your mission. By embracing a collaborative mindset, your nonprofit can do more with lessโwhile building lasting relationships that benefit the broader community you serve.
What Are Shared Resources?
Shared resources make up all the operational things that allow your nonprofit to fulfill its mission. Like your organization, other nonprofits in your community are paying for these same resources, such as a building or office, desks and chairs, printers and copiers, utilities, and maintenance.
Coming together and sharing these resources with other nonprofits in your community can greatly reduce your overhead. Sharing resources with other nonprofits can also help you to collaborate on programming ideas or spark new ways of approaching your mission, adding to the services you deliver to your target group.
Possible Ways to Share Space and Resources
The idea of sharing space has taken off around the globe. Nonprofits, digital nomad workers, freelancers, and small businesses alike are sharing office space to cut costs or out of necessity. The arrangements come in all forms, from short-term arrangements to long-term leases, and serve to allow access to offices, office equipment, conference rooms, breakrooms, and other common areas.
Consider these popular arrangements:
Nonprofit Centers
Some nonprofits are joining together to create comprehensive office environments similar to what for-profit companies have done with collaborative working offices. By working with one or more nonprofits in your community, you can share offices, desks, meeting rooms, office equipment, and common areas, such as kitchens.
Private Foundation Space
You might find a private foundation in your community that has more space than it needs. The foundation can save on property taxes by leasing to your nonprofit and might even pass those savings on to you through a reduced rent.
Donated For-Profit Space
A business in your community or a contributor to your organization might be willing to donate office space for your nonprofit. This could prevent your nonprofit from carrying a mortgage.
Other Considerations
Depending on the location and size of your nonprofit, sharing space could significantly reduce your groupโs overhead. However, office space isnโt the only area where you can find savings.
Backoffice services like human resources and information technology (IT) are additional areas to consider sharing with one or more nonprofits. Sharing these functions that all nonprofits need can provide the support you want and lower your overhead.
However, itโs important to spend time verifying that other organizations you might work with align with your needs. Sharing space and other resources should enhance your organizationโs ability to fulfill its mission, not create stumbling blocks.
Get the Accounting Services Your Nonprofit Needs Today
Accounting for a nonprofit is a unique mission. From fund accounting to financial reporting to financial planning, the accounting service you choose is critical to the success of your organizationโs mission.
At Ernst Wintter & Associates LLP, we have more than 25 years of experience helping organizations with accounting and tax services. We understand the particular challenges nonprofits face and have the specialized knowledge necessary to help you navigate your audits and financial statements.For comprehensive nonprofit accounting or auditing services, call Ernst Wintter & Associates LLP today.
