Nearly a quarter of all shared space projects are driven by foundations, whether it’s because they have many grantees conducting capital campaigns at the same time, they’re searching for new offices themselves, or they’re looking for a new way to invest in their community. We know that the philanthropic community is a valuable partner to shared spaces, but shared spaces have many benefits for foundations as well.
- A mission-related investment opportunity: Many foundations invest a portion of their endowment in real estate. Shared space offers the same opportunity with a deep local impact. The Jessie Ball duPont Fund structured the development of the Jessie Ball duPont Center so that its rents generate a reliable return on investment. While the building does not perform at the same rates as other portfolio assets, the foundation sees that the local social return is worth it.
- The ability to make in-kind grants: The Charles A. Frueauff Foundation in Little Rock, Arkansas, offers in-kind grants of office space for two to five years to qualifying nonprofits. This allows the foundation to leverage its own offices to have a greater impact.
- The chance to spark community redevelopment: The Melville Charitable Trust purchased the historic Lyceum building in the Frog Hollow neighborhood of Hartford, CT in 2003, an area that had seen decades of disinvestment and decline. Following a building renovation, the space became a hub of housing advocacy and community organizing, leading the Trust to make additional property investments in the neighborhood.
- The opportunity to be in-the-know: Many foundations that share space with other nonprofit agencies report a value from being at the center of a hub of community activity. Program officers can see first-hand the issues that affect their grantees and become a stronger community partners.
If you represent a foundation that operates a shared space, we want to hear from you. What are the benefits that you’ve seen to your practice as a funder? E-mail us at email@example.com!