SHARED SERVICES ORGANIZATION
Equity Through Capacity
SHARED SERVICES ORGANIZATION
WHAT IS IT?
A shared services organization is founded on the principle that sharing resources can help reduce costs for individual nonprofits, increase partnership opportunities, and leverage social and political capital to make systemic change in communities. It is an equity issue; many small nonprofits led by people of color and/or serving people of color do not have the same access to economic, social, and political resources as their white nonprofit peers. Larger nonprofits have the capacity to obtain and administer larger grants as well as fundraise unrestricted monies compared to smaller and medium-sized nonprofits regardless of their effectiveness in addressing the issues in the community.
HOW WE TACKLE CAPACITY INEQUITY
➔ Shared evaluation and outcome metrics across nonprofits. Sharing services like evaluation and research can create opportunities for multiple nonprofit organizations to identify shared outcome metrics that can help drive better service delivery, inform funders on trends in implementation and need, as well as be used as leverage for economic capital.
➔ Reduced cost for high quality administrative and operational services. Instead of duplicating services for each nonprofit, we can share services that are scaled for the size and need of the organization. This can help keep costs down for nonprofits while still reducing their administrative burden.
➔ Reduced financial risk for funders and grantees. There is always inherent risk in investing in nonprofits; this is especially true for small nonprofits that have limited administrative and operational capacity. With a team to help these nonprofits engage in best practices for program monitoring, reporting, accounting, legal support, and other requirements for grant administration can reduce the risk for funders who want to support smaller nonprofits who are closer to the issues they want to address.
➔ Increased opportunities for partnerships between nonprofits. By sharing information, services, and metrics, natural connections between nonprofits can create more successful partnerships. We know that partnerships are critical to addressing equity and systemic issues, therefore, it is imperative that we find ways to nurture trust and sustain long-term partnerships.
➔ Increased access to financial resources to scale nonprofits to meet the needs of the community. Between trying to run programs and daily operations, find funders, and keep the doors open, many small nonprofits do not have time nor the access to the financial resources they need to scale their programs and make a substantial impact in their community. With dedicated services, nonprofits can access more financial resources and funders while still working on their mission.
➔ Increased innovative practice by diverse organizations. By easing the operational and administrative burden of small nonprofits and funding evaluation and research, we can begin to capture innovative practices and programs that are often missed due to a lack of funds. This is a crucial opportunity to work with nonprofits that are led by folks with lived experience and an understanding of the issues.
➔ Increased power and leverage between small and medium sized nonprofits and funders. Increased capacity can elevate the work and impact of smaller and medium-sized nonprofits. This, coupled with robust outcome and evaluation data, can be leveraged to better position these nonprofits to more equitable access to political and economic capital.