U-M professor recommends renewal of nonprofit infrastructure

May 14, 2003
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ANN ARBOR—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 University of Michigan professor says. “The nonprofit sector is a critical part of our social fabric,” said 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, will present her findings Thursday (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 four sites in four U.S. cities (Dallas, Wilmington, Del., Ann Arbor, and San Francisco), she interviewed more than 100 tenants about their situations. Most tenants 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 said. 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 When multiple nonprofit agencies move from outdated, high maintenance properties to a common site, they save money on rent—often the largest budget component after personnel—and can share office support, Vinokur said. For some organizations, the move can result in access to modern communication and information technology. They can also 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, such as lofts, warehouses and armories. In addition, nonprofits also face increased needs for business-like operations to compete for limited funds and to meet contributors’ rising standards for accountability, evaluation and collaboration.
For information on Vinokur, visit www.ssw.umich.edu/faculty/profile-dkv.html A link to the “Under One Roof” project, which provides locations and descriptions of about 100 co-locations nationwide, is at www.ssw.umich.edu/underoneroof/ Information about Multi-tenant Nonprofit Centers can be found at www.nonprofitcenters.org