3 Examples of Shared Services

Nonprofits are constantly looking for ways to do high-quality work with a limited budget. As a way to stretch limited budgets, address capacity, and enhance effectiveness, many nonprofits are coming together to share services. Almost any resource that doesn't exclusively fulfill an organization’s mission can be shared, including office space, equipment, software, human resources, and IT. Across the sector, shared services have been instrumental in the adaption of nonprofit work, propelling efficiency and effectiveness, and enhancing shared impact. Shared services is a key organizational pillar for our work.

In this post, we explore three examples of shared services that could be viable options for our community. Before we dive into it, let’s define shared services.

What are shared services?

Shared services are a collaborative use of resources across organizations. Shared services are developed when multiple nonprofit organizations come together to utilize the time and expertise of contractors or employees focused on mainly back-office functions. This allows many nonprofits to make better use of equipment, space, staff, and more.

We go over shared services more in this blog.

Office space

Nonprofits can share office space with other nonprofits in the community. This allows organizations to reduce overhead costs and share resources such as furniture, utilities, and maintenance. Sharing office space is also a great way for organizations to collaborate on projects or programs that require multiple stakeholders.

Some nonprofit organizations across the nation are starting to develop “nonprofit centers,” borrowing from the coworking model. These centers not only provide desk space but also meeting rooms, access to copiers, and even kitchens.

Did you know that Nonprofit Support Network, actually shares office space with BY5, replicating this concept?

Technology

Technology is another expensive line item for nonprofit organizations. Many nonprofits are beginning to team up teven to cover their overall IT needs, including saving on computers and printers and security software. In addition, nonprofits are integrating the same IT platforms to save hundreds of thousands of dollars a year.

Nonprofits share not only the technology itself but also tech staff. It may not be justifiable for your organization to hire a full-time IT person, but partnering with another nonprofit gives more funding and support. Some additional shared technology services also include website development. By sharing these services, nonprofits can reduce costs and access expertise that they may not have in-house.

Human Resources

Having a specialized professional to handle human resource functions is essential, but many nonprofits lack the resources. By sharing these services, nonprofits can reduce costs and access expertise that they may not have in-house. Many nonprofits have difficulty offering their staff benefits, such as health insurance, whereas shared services for HR or benefits could provide more access. Outsourcing these gives other employees time to focus on the nonprofit's fundamental mission.

Want to learn more about HR Shared Services?

Academy to Innovate HR shared a lot of helpful information on HR shared services in a general sense. Read more here.

In addition to these examples, nonprofits can share services such as marketing and communications, legal services, and fundraising support. The key to successful shared services is finding partners with complementary skills and resources and establishing clear agreements and expectations for how the services will be shared and managed.

Shared services can improve the efficiency of your organization’s operations, allowing you to be more effective with the same resources. In addition, they can help strengthen community partnerships by enabling nonprofits to collaborate on projects and serve their constituents better.

Nonprofit Support Network sees the power shared services can bring to Muncie and Delaware County. As we continue to explore the concept of shared services and how Nonprofit Support Network can serve as the hub of one or more of these services, we’re hosting a new peer group to foster these discussions. If you want to learn more about this solution for our community, learn more about Shared Services Huddles here.