Nonprofits Go to the Mall

Posted by Laura Otten, Ph.D., Director on July 22nd, 2010 in Articles, Thoughts & Commentary

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We talk all the time about business partnerships—we must find the win-win for the nonprofit and the business, we must develop these valuable partnerships, etc., etc., etc.  (I can never say that without thinking of Yul Brynner).  Most of the times, however, it is the nonprofit approaching the business with that win-win proposition.

While not at all the same win-win proposition mentioned above—as those are more like the theatre approaching restaurants in the town to provide a discount to theatre goers showing a ticket for that night’s show—these two ideas about which I just learned have their own, very decided win-win.

Sovereign Bank Stadium in York, Pennsylvania, is now available—rent free—to nonprofits hosting community events.  Last week, the owners of the Stadium, the York County Industrial Development Authority (YCIDA), and the Stadium’s primary tenant, the York Revolution, a professional baseball team that is a member of the Freedom Division of the Atlantic League of Professional Baseball, made the announcement of this new program.

But there is more.  There is a competition involved, and having use of the Stadium rent free is the prize for all runners-up.  First prize—or what they call Diamond status—comes not just with free rent, but a $5,000 marketing package, $500 donation to off-set the other costs of the event and a 25% discount on the cost of lights and sound.  Platinum status will receive free rent, the marketing package and the donation, while three organizations will receive Gold status and get the free rent and $500 donation.  Not shabby at all!

Without taking anything away from the YCIDA and the York Revolution, there is something in this for them—as well there should be.  As their press release announced, YCIDA wants to “increase community visibility” of the Stadium and maximize its use for “public and community purposes.”  Again, not only is there nothing wrong with that, it is a great idea.   How many days of the year and how many hours of a day does a Stadium—or any other locus of entertainment–go unused?  But there are costs involved for unused space; why not get some good civic credit for those bucks?  Certainly, YCIDA could rent the space out and try to recoup some of the costs of unused space, but it has chosen not to do that.  And, in fact, the YCIDA and the York Revolution are taking this good deed one-step further by adding, for the winners of the competition, some other costly benefits.

Across North Carolina, malls with empty spaces—know any malls like that?—are letting nonprofits use the spaces for free or nominal rent, and sometimes even free utilities are included, making the malls’ gifts even greater.  Granted, in exchange for free or nominal rent nonprofits face a very short turnaround for moving out should a full-paying tenant be found.  But in the meantime, rent money is saved.  And equally, if not more important, great exposure is gained.  (Imagine the price tag for that!)  People walking by see the nonprofit at work, drop in, learn, volunteer, donate, whatever.

Again, this is a win for the mall owners.  Mall owners don’t like empty spaces.  Done: space filled, responsible tenants found.  Like all businesses, mall owners reap the reward of being (perceived as) a good corporate citizen.  Done:  nonprofits are helped with an in-kind donation and good citizenship easily displayed and noted.  Associations develop in consumers’ minds:  nonprofit X and mall Y.  Mall owners do better with consistent tenants and low tenant turnover.  Done:  nonprofits can turn into paying tenants.

As with Sovereign Bank Stadium, this civic goodness is costing mall owners some bucks.  But they, too, recognize that subsidizing rent or the cost of utilities is in their own best interests and the interests of the community of which they are a part and which they serve.  Kudos all around!

Let’s hope other businesses will follow suit.

The opinions expressed in Nonprofit University Blog are those of writer and do not necessarily reflect the opinion of La Salle University or any other institution or individual.