I’ve noticed a marked increase in interest for shared services over the past year or so. Shared services offer an opportunity to access high-quality professional services suited to fit the organization’s needs, usually at a lower cost than they might find on the open market. From surveying nonprofits across the country, I saw that smaller organizations are more likely to be interested in shared services over all (makes sense) and that the highest demand is for professional development, IT services and volunteer referrals. I was surprised to see accounting be one of the lowest ranked services that orgs were willing to share. Obviously, each area needs to assess the needs of its nonprofits and provide opportunities accordingly.
Shared services offer significant operational and financial benefits. By pooling administrative functions such as accounting, IT support, human resources, reception, security, and facility maintenance, organizations can reduce overhead costs and achieve economies of scale that would be difficult independently. For small and mid-sized nonprofits this cost efficiency allows a greater proportion of funding to be directed toward programs and community impact rather than back-office expenses. In shared nonprofit spaces, these efficiencies are amplified because the physical co-location makes coordination seamless and infrastructure investments (like broadband, meeting technology, and accessibility upgrades) can be collectively leveraged.
Beyond cost savings, shared services strengthen organizational capacity and professionalization. Smaller nonprofits frequently lack access to specialized expertise in compliance, data management, fundraising systems, or impact measurement. Access improves operational resilience, reduces risk, and enhances accountability to funders and stakeholders. Perhaps most importantly, shared services foster collaboration and strategic alignment. Shared services can be a catalyst for deeper partnership, greater mission alignment, and stronger social impact within the broader social purpose real estate ecosystem.
CSN is offering two webinars around this topic which will illustrate different paths that communities have used to address shared service demand. We are also developing a new playbook to help communities navigate their way to providing appropriate shared services for local nonprofits.