What is a Shared Services Organization (SSO) for Nonprofit Capacity-Building?
A shared services organization for nonprofit capacity-building is a collaborative entity that provides various support services and resources to multiple nonprofit organizations. These services are aimed at enhancing the operational efficiency, effectiveness, and sustainability of nonprofit entities.
Here’s how it typically works:
- Pooling Resources: Nonprofit organizations collaborate to pool their resources, both financial and human, to create a centralized entity.
- Service Provision: The shared services organization offers a range of services that individual nonprofits may struggle to afford or manage independently. These services can include but are not limited to:
- Financial management and accounting
- Human resources management
- IT support and technology solutions
- Marketing and communications
- Fundraising and grant writing assistance
- Training and professional development
- Customization: Services are often tailored to meet the specific needs of each participating nonprofit, ensuring that they receive support that aligns with their mission and objectives.
- Cost Efficiency: By sharing the costs of these services among multiple organizations, each nonprofit can benefit from cost savings and economies of scale. This allows them to access high-quality support services at a lower cost than if they were to procure them individually.
- Knowledge Sharing: Shared services organizations also provide a platform for knowledge sharing and collaboration among participating nonprofits. This can include workshops, seminars, and networking events where organizations can learn from each other’s experiences and best practices.
Overall, shared services organizations can play a vital role in strengthening the nonprofit sector by improving organizational capacity, promoting collaboration, and maximizing resources to better serve their communities.
What is the American Rescue Plan Act (ARPA)?
Hypatia Collaborative is funded by the American Rescue Plan Act (ARPA), a significant piece of legislation passed by the United States Congress and signed into law by President Joe Biden in March 2021. It was designed to address the ongoing economic and health crises resulting from the COVID-19 pandemic. The ARPA includes various provisions aimed at providing relief to individuals, families, businesses, and state and local governments.
Hypatia Collaborative Project Overview
Many small nonprofits face significant challenges in accessing the resources necessary to expand their programs and make a meaningful impact in their communities. Amidst managing day-to-day operations, seeking funding, and maintaining stability, these organizations often lack the time and financial means to scale effectively. Recognizing this need, a Shared Services Organization (SSO) is being established under the management of the Hypatia Collaborative in St. Petersburg. The SSO aims to bolster the administrative, operational, and programmatic capabilities of local nonprofits, offering services such as grant writing, legal advice, fundraising strategy, and professional development. By fostering collaboration and resource-sharing among nonprofits, this initiative seeks to enhance their ability to serve the community’s most pressing needs.
In laying the groundwork for the SSO, efforts will be focused on establishing a robust operational infrastructure. Beginning in 2024, activities will include hiring staff, setting up systems, and forming organizational policies. The Hypatia team will engage with potential nonprofit partners, conducting intake interviews and developing tailored plans for implementation. Additionally, a community advisory board comprising various stakeholders will be formed to provide guidance and ensure alignment with community needs and trends. Through these concerted efforts, the SSO aims to empower nonprofits in St. Petersburg to thrive and better fulfill their missions of service and support.
Eligibility Requirements
We chose operating budget, populations served, staffing capacity and size, and leadership demographics because we believe that these categories address different types of inequities faced by small and grassroots nonprofits.
- Must have a 501c3 IRS determination and have filed with the State of Florida OR community group operating under a fiscal agent with a 501c3
- Organizational headquarters are located in St. Petersburg city limits OR 75% of the population served resides in St. Petersburg zip codes
Scoring Rubric
| Category | Full Points (10) | Half Points (5) | Quarter Points (2.5) |
|---|---|---|---|
| Operating Budget What is your last year’s operating budget? | $50,000 (Grassroots) or less annually | $250,000 (Small) to $50,001 annually | $250,001 to $500,000 annually |
| How the Nonprofit Was Impacted by COVID-19 How has COVID-19 impacted your nonprofit? | Present or Absent (no score) Our nonprofit has faced significant challenges due to the pandemic’s increased demand for services and changing operational needs, as well as declines in revenue sources such as donations and fees.* | ||
| How Population(s) Served Were Impacted By COVID-19 Who is/are your primary populations served and how were they impacted by COVID-19 | Present or Absent (no score) We are serving populations negatively impacted by COVID-19. | ||
| Where is the Nonprofit and/or Population Served Located? Are you and/or your clients located in 2023 or 2024 Qualified Census Tracts (QCTs) and/or a Community Redevelopment Area (CRA) in St. Petersburg? | Present or Absent (no score) We are serving populations and/or located in a QCT** or CRA***. 2023 QCT generator | 2024 QCT generator (Pinellas)QCT Map for St. Pete South St. Petersburg CRA map | ||
| Leadership Composition Is your board and staff reflective of who you serve? | 50% or more of the board and staff are reflective of the population served | 50% or more of the board or staff are reflective of the population served | There is an intentional plan in place to recruit more board members and staff who are representative of the populations served |
| Staff Capacity Who is supporting operations and administering programs? | The organization consists of less than 5 paid staff/leadership | The organization consists of 6 to 15 paid staff/leadership | The organization has more than 15 paid staff/leadership |
| *We are using the U.S. Treasury Department’s definition of Impacted Nonprofits: “Recipients can identify nonprofits impacted by the pandemic, and measures to respond, in many ways; for example, recipients could consider: 1.) Decreased revenue (e.g., from donations and fees); 2.) Financial insecurity; 3.) Increased costs (e.g., uncompensated increases in service need); 4.) Capacity to weather financial hardship; 5.) Challenges covering payroll, rent or mortgage, and other operating costs.” | |||
| **We are using the U.S. Treasury Department’s definition of Disproportionately Impacted Nonprofits: “Treasury presumes that the following nonprofits are disproportionately impacted by the pandemic: Nonprofits operating in Qualified Census Tracts” in addition to the South St. Petersburg Redevelopment Area. | |||
| ***Under Florida law (Chapter 163, Part III), local governments can designate areas as Community Redevelopment Areas when certain conditions exist (Redevelopment.net). The South St. Petersburg Community Redevelopment Area (CRA) was established to promote reinvestment in housing and neighborhoods, commercial corridors, business development, and education and workforce development within the South St. Petersburg CRA (stpete.org). | |||
The Intake Process
The Hypatia Collaborative believes that clients should be familiar with our leadership team from the beginning of their journey with us. This means that the CEO and CCO will be conducting the Nonprofit Needs Assessment (NNA) and working with the Client Services Coordinator to create the individualized client plan.
Once contact has been made with the SSO, NNA has been completed and Client Services Plan has been agreed upon, the nonprofit will work with Merit, the nonprofit capacity training platform to complete the Impact Capacity Assessment (iCAT), an industry-standard nonprofit assessment tool developed by Algorithm, to assess 27 different areas of nonprofit organizational capacity. The iCAT will be used to measure client progress as the Client Services Plan is implemented. The CSC will use the client plan to determine the appropriate referrals within our Collaborative Network and work with the client to facilitate an agreement between the client, CSC, and vendors on how to move forward with the client plan. The client plan will include organizational benchmarks based on identified goals and needs, vendor preferences determined by the client, and an individualized progress monitoring plan for the client. This helps create a baseline for evaluating the progress of the nonprofit with the SSO, determine the duration and type of services received by the client, and inform the overall SSO evaluation plan.
Throughout the implementation of the client plan, we will use a cyclical, iterative monitoring process that tracks the client plan implementation, evaluates the benchmarks against the baseline and goals, and leaves room for plan adjustments based on internal and external forces impacting the client.
Referral information, plan, baseline data, and NNA data will be housed in the SSO database. The database will serve as an SSO efficacy monitoring and accountability tool, a database of nonprofit client data collected throughout the lifespan of the services rendered by the client, a client-relationship management tool, and a business intelligence and evaluation data warehouse.
Cohort Selection Process
- Nonprofits will have different missions and causes (no two nonprofits will have the same mission or issue focus)
- The nonprofits that score the highest on our eligibility criteria will be given priority in the cohort selection process
- History of collaboration; the nonprofits selected will have a history of positive collaboration in the community
- Readiness to partner; the nonprofits selected will be ready to partner with the SSO and those in their cohort including engaging in professional development and mentorship
Cohort Guidelines
- Active Participation: Cohort members are crucial contributors to the capacity-building process. Their active engagement in training sessions, workshops, and collaborative activities is essential for mutual learning and growth.
- Feedback and Input: Cohort members provide valuable insights into their organizational needs, challenges, and goals. Offering constructive feedback helps tailor capacity-building initiatives to better address the specific requirements of each organization.
- Application of Learning: Cohort members are responsible for applying the knowledge and skills gained during capacity-building activities to their respective organizations. This includes implementing best practices and incorporating lessons learned into their daily operations.
Participant Commitments
- Nonprofits must designate a staff member or board member to serve as the primary point of contact for the grant program.
- Participating organizations are expected to actively engage in capacity-building activities and commit to implementing recommended strategies.
- Participating organizations are expected to actively participate in professional development activities and networking opportunities to build a robust nonprofit network
- Nonprofits must adhere to reporting requirements, including progress updates, financial documentation, and outcome measurement.
