Professor recommends sharing of nonprofit infrastructure

As demand for nonprofit service rises, organizations with limited budgets and staff should consider organizing multi-tenant nonprofit centers to save expenses and coordinate programs, a U-M professor says.

"The nonprofit sector is a critical part of our social fabric," says Diane Kaplan Vinokur, an associate professor in the School of Social Work. "It plays a vital role in maintaining healthy environments and communities, and promoting a just and democratic society."

Vinokur, who has studied this phenomenon for the last four years, presented her findings May 15 at a national conference she helped organize, "Collaborating for Success II: Creating and Operating Nonprofit Centers," in New York.

In her study of sites in four U.S. cities (Dallas, Wilmington, Del., Ann Arbor, and San Francisco), she interviewed more than 100 tenants about their situations. Most indicated they were attracted to the low rent and safe, more professional environments these centers can offer. Seven out of 10 said they would like to stay indefinitely. The findings suggest that the physical environment and financial arrangements are significant predictors of satisfaction, she said. She also found a considerable amount of information sharing among tenants, suggesting that such "water cooler talk" can lead to new resources and opportunities.

Demand for nonprofit service has climbed steadily in recent years, especially programs that involve childcare, elderly and AIDS.

"If we want public-serving organizations to take care of people, they have to have a place where they can do business," she says.

She located nearly 100 shared nonprofit centers nationwide. When multiple nonprofit agencies move from outdated, high maintenance properties to a common site, they save money on rent—often the largest budget component after personnel—and can share office support, Vinokur says. For some organizations, the move can result in access to modern communication and information technology. They also can aid the clients by establishing one-stop shops for families seeking social services or holistic health care, education and training in one location, she said.

But finding the best location isn't simple. As the number of nonprofits continues to grow, competition for real estate also increases, especially for sites previously undesired by commercial firms or government.

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