Monday, December 20, 2010

Rent to Own

Our November 2010 issue of Added Value focused on space solutions for nonprofit organizations. Many organizations expend a large portion of their income on rent, mortgage payments and space costs. After personnel, it’s usually the second largest expense. The article offers a broad list of options to explore your space needs—its likely that one of these will help you to spend less on space and more on mission, either now or in the years to come. If you have space challenges check it out. If you want to increase the resources your organization has for mission, study it and implement your best options.

The article starts with fifteen options. It will remain permanently under-construction. I will add to it as I encounter new ideas. To help, send me your space answers. If you wish, I’ll be glad to credit you for them.

Here is the first addition:

#16. Rent to Own

Consider if you have a relationship with someone with who can buy a space for you. If yes, work with them to purchase it and then enter into a rent-to-own agreement with them. Assuming the rent payment in similar to the one you now pay, over time you will move from being a renter to owner, without the need for capital campaign. One local organization recently found that this arrangement allowed them to house all their staff in one building (instead of scattered sites in two counties), pay the same rent and put down permanent roots.

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