If your nonprofit is seeking effective ways to reduce expenses, focusing on your workspace is one of the most impactful strategies. Sharing an office or facility can significantly lower your rent or mortgage costs, as well as reduce utility bills. Additionally, these arrangements can offer other cost-saving benefits, such as the ability to share equipment, supplies, services, and even staff. 
However, it’s important to consider potential challenges before diving into this option.
Exploring Options
Shared spaces typically involve collaboration among nonprofits, small businesses, freelancers, consultants, and others. Depending on their requirements, tenants can opt for short- or long-term access to private offices, conference rooms, and communal areas. Office essentials and services, such as internet access, copiers, printers, scanners, and coffee, are often shared among occupants.
You might explore various types of arrangements. For instance, partnering with another nonprofit that serves a similar demographic could allow you to rent a shared facility, creating cost efficiencies and potentially enhancing the services provided to clients. Additionally, you could rent out any unused space to other organizations, generating revenue to help cover your rent.
Other options to consider include:
- Dedicated Shared Workspaces: These commercial arrangements typically accommodate a variety of organizations, though some focus specifically on nonprofits. Along with shared amenities, they may provide “back-office” services like HR and IT support.
- Private Foundation Offices: Some private foundations have extra space that they lease to charities. By renting to tax-exempt organizations, they can avoid high property taxes and pass on those savings to tenants through reduced rent.
- Donated Space: A local for-profit business or an individual supporter of your nonprofit might be willing to offer space at no cost.
Mixed Blessings
The most apparent advantage of sharing space is the cost savings compared to renting or purchasing your own location. However, there may be challenges when seeking a suitable arrangement. For example, some nonprofits may hesitate to share space with organizations that compete for the same population or funding sources.
Another concern is the possibility of a culture clash once you move in and start sharing space with other organizations. Additionally, consider potential legal issues, such as lease obligations, compliance requirements, and liability risks. To mitigate these problems, conduct both scheduled (to hear the sales pitch) and unscheduled visits (to get a realistic feel of the environment), and take the time to get to know potential co-tenants before finalizing any agreements.
Your Best Move
Depending on your location, your nonprofit may feel the pressure of rising rents. Alternatively, you may have noticed numerous empty spaces in your community available for lease or purchase at low prices. If you’re contemplating a change in your workspace, reach out to us for assistance in determining the best course of action.
