Facility Planning

Day: Most directly, the space where a nonprofit’s work takes place has an outsized impact on the organization’s operations. In many cases, nonprofits are making do in older facilities that weren’t designed specifically to support their programming. A community health clinic located in a former office space, for example, is going to operate differently than a clinic in a building designed for a medical provider. This creates daily friction that makes the work itself more challenging, whether contending with a floor plan that limits patient privacy, inadequate lighting in exam rooms, or other challenges.

When a space is dilapidated, cramped, or simply inefficient, it also sends a subtle but powerful message to staff, the people being served, and the broader community that the work is unimportant. Conversely, an intentional, high-functioning space sends a clear message to occupants, visitors, and the neighborhood that they are important, with intrinsic value and a realizable vision of hope.

Day: The urge to economize in the nonprofit sector is incredibly strong. Leaders are under constant pressure to keep overhead low, which often prevents them from thinking about how their space could actually accelerate their mission. We need to shift the conversation so that facilities are recognized as a core component of service delivery.

Day: It is vital for the philanthropic community to recognize that most programs require a physical space to operate. Providing the funding for a new roof or an interior redesign of the facility is just as mission critical as funding a new staff position. When donors and funders invest in facilities, they are investing in the long-term sustainability of the organization.

Day: Not necessarily. While major projects are sometimes required, organizations can often meaningfully upgrade the facility without significant capital investments. For example, addressing deferred maintenance, like tuckpointing or roof repairs, prevents future crises that will require far more money to resolve. Energy-efficient upgrades, such as improved insulation or installing low-flow plumbing fixtures, reduce utility bills and free up cash for programming. Even purely cosmetic updates like a fresh coat of paint or different lighting can drastically improve the experience of clients and staff alike. These types of investments are often very achievable and serve as incremental steps toward a high-functioning facility that better meets the organization’s needs.

Day: Beyond traditional fundraising avenues, financing can be a powerful tool. While for-profit companies leverage debt as a matter of course, there’s a perception in the nonprofit sector that taking on debt for a capital expenditure is a risky choice.

To be clear, taking on debt does involve risk and isn’t the right fit for every nonprofit. While narrow margins shouldn’t deter nonprofits from seeking loans, underlying financial instability should. For organizations with consistent revenue, however, debt can serve as a bridge to a more impactful future. Financing allows nonprofits to complete projects more quickly than would otherwise be possible to increase capacity while maintaining cash on hand for immediate needs by spreading costs over the term of a loan.

Day: Start by naming the tension. Acknowledge if your current space communicates a message of scarcity that contradicts your mission. Once you define the gap between your current facility and the level of function your programming requires, identify partners who understand the unique financial and real estate needs of nonprofits. The most successful projects begin when a leader decides that their mission deserves a home that inspires.