How charities can share office space and infrastructure

With budgets stretched and competition for funding growing, sharing office space and infrastructure is a way for charities to save money. It can help them to make better use of their resources and increase efficiency as they can direct their time, skills, and money to delivering their vital services.

 

Shared infrastructure is a function that allows organisations to carry out their charitable activities. For example, human resources, IT, and administration.

 

 

Benefits of sharing resources

 

There are several benefits to sharing office space with one or more other charities. As well as saving money on rent and utility bills, you can split the cost of essential items, like internet and office supplies.

 

As well as the cost savings, sharing premises with other charities can build a collaborative environment. For example, charities with shared goals can work together on large projects. They can also network and share contacts with each other.

 

When it comes to sharing support services, charities may be able to negotiate discounts with suppliers as they are buying in bulk.

 

And because of the cost savings of sharing services, charities will potentially be able to access a wider range of services and improved quality of services.

 

 

Growing trend for sharing office space

 

Legal firm Russell Cooke says that the pandemic has led to “changes in how charities use and occupy property”. Charities took stock of the amount of office space they needed as staff were working from home. They started looking for smaller spaces or letting to or sharing surplus space with other charities.

 

One charity that followed this trend was Sense. The national disability charity shares it office space with the Family Rights Group. This benefits both charities as it keeps their costs down. Another big charity supporting smaller organisations is Shelter, which rents desk and office space to the Sheila McKechnie Foundation.

 

 

Things to think about when sharing office space

 

Before you commit to sharing office space with another charity, think about the logistics. Make sure all organisations are clear about how costs will be split to make sure everything runs smoothly. You should have a formal agreement in place that includes rules about noise levels, cleaning responsibilities, and how to book shared meeting rooms.

 

If your charity handles confidential and sensitive information, you need to think about how this will be managed in a shared office.

 

 

Things to think about when sharing support services

 

Charities can share support services either from their separate offices or in the same premises. They can then choose to collaborate on just one support service or a few.

 

The NCVO says that two or more charities can create a separate organisation to provide partner charities with support services. By doing this, charities separate the collaborative working from the activities of each charity. It’s a more formal way of managing the shared services.

 

When it comes to deciding on a structure for the new organisation, there are different ones to choose from. It’s best to get professional advice to work out what is the right structure for the new organisation.

 

Trustees are responsible for the activities of their charity. They should maintain control over the working arrangements of collaborating with other charities.

 

The boards of trustees at the different charities may want to consider setting up a joint committee to oversee the working arrangements. Representatives from each board could then join the committee.

 

As well as having the support of trustees, it’s useful to have a senior member of staff overseeing the work and a project manager to make sure it’s implemented. The project manager can then report back to a group of staff representatives from all of the charities.

 

 

Carrying out due diligence

 

The NCVO advises that charities looking to share support services should carry out due diligence. This will help charities identify if potential partner charities have any liabilities and decide whether they want to go ahead with sharing services.

 

Due diligence includes thinking about your reasons for sharing infrastructure and monitoring and reviewing this to make sure the organisation is achieving it.

 

The NCVO also advises that if a charity is planning to outsource support services, like finance or HR, not to do this all at once. It says to “start small” to build confidence among the organisations using the services. Charities also need to think about the implications for VAT.