Building Solutions for Nonprofit Organizations 

Construction in the nonprofit sector is not just about building structures; it’s also about building communities under the pressure of tight budgets and high stakes. Nonprofit organizations face the unique challenge of creating spaces that serve their mission without the luxury of profit-driven funding. This requires hiring a general contractor who can think outside the box, execute creative cost-saving solutions, and deliver high-quality results despite financial constraints.  

Every construction project for nonprofit organizations is an opportunity for builders to leverage partnerships, and get creative with limited resources to make real, lasting differences in the communities they serve. It is more than construction—it’s meaningful work with the opportunity to give back to the community. 

Our team has built a solid reputation through successful projects with many of the country’s top nonprofit organizations like Ronald McDonald House Charities, Planned Parenthood, PACE (Program of All-Inclusive Care for the Elderly) and HomeAid. Our unique blend of commercial construction experience is combined with a passion for facilitating projects that help nonprofit organizations succeed.  

“Anybody involved in construction for nonprofit companies has to have a heart for the community,” said Jamie Prevost, Principal. “Our ability and knowledge of the expectations of non-profit organizations is unique. We know how to work with suppliers, trade partners and others involved to donate time and resources, which is important to the success of these projects.” 

With the completion of each nonprofit construction project, our team gains new experience and insights, helping to better serve as true partners and advisors for nonprofit organizations. 

Aligning Funding and Budgets in Nonprofit Work 

“Funding is critical because it has to be specific and dedicated to the project,” said Jaime Prevost. To help with budgetary issues, nonprofit clients may look for a general contractor who can help manage material costs and connect with subcontractors and suppliers to make value-in-kind donations to the project.  

Nonprofit projects are heavily dependent on specific, often limited, funding sources. These come from grants (HUD, state funding, etc.), private donors, or discounted capital. 

While funding is tightening in some sectors, federal and state money remains available for projects aimed at low-income housing and affordable senior living.  

It is also common for nonprofit organizations to launch fundraising activities after a budget is approved for projects funded through grants and other sources. Reaching their goal can often take months or even years. At the same time, building material prices can fluctuate based on market conditions, making the original budget insufficient to fully fund the project.  

Because long fundraising timelines can result in outdated budgets and create financial gaps, it is critical to hire a contractor who can help provide cost-saving measures. The general contractor should understand current market trends and have knowledge of upcoming building code changes that may affect the budget, while also factoring in annual cost escalation. 

Tenant-in-Place Projects 

One key difference between nonprofit and for-profit construction projects is the frequent need for tenant-in-place construction.  

Nonprofit projects, such as senior living facilities or transitional housing, often require renovations while the building remains occupied by tenants or service recipients. This adds a layer of complexity, as it requires careful planning and coordination to minimize disruption to those who live in or near the construction zone.  

In these cases, phased construction is typically used, where small sections of the building are renovated while the occupants are relocated for a short period of time, ensuring that the facility can continue to operate while the necessary upgrades are made. 

Strong Relationships Help Create Solutions 

Our team has extensive experience and a track record of providing solutions that ensure clients achieve their goals and vision for a space while staying within their established budget. We accomplish this through relationships with material suppliers, subcontractors, and organizations like  HomeAid America, where the local chapter assists non-profit companies to save money by leveraging negotiated discounts with national companies to drive savings on certain building materials.  

Relationships beyond the job site are crucial, too. Through activities like corporate sponsorships, volunteer work, fundraisers, and professional networking, interactions within the community can have a big impact on funding for nonprofit construction projects.

Trends in Nonprofit Construction  

Low income and affordable senior housing construction projects have been on the rise in recent years. Baby Boomers are reaching retirement age, with an average of 11,000 Boomers retiring every single day. This influx is heavily influencing the nonprofit construction market. We are seeing existing and new senior living facilities and community centers adapting to the Boomer generations’ desire for an “Active Retirement”. Over the next three to five years, we expect senior living projects to focus on this demographic, incorporating more upscale restaurants, sports bars, and fitness centers to attract the aging Boomer population.   

Case Study – Center For Elders’ Independence  

In the San Francisco Bay Area, we have partnered with the Center for Elders’ Independence (CEI) to build three facilities via the PACE Program. The focus of PACE is to provide a facility for health services, meals and community activities to those transitioning to elderly life in lower-income areas, with the goal for the participants to live safely and independently at their home  

“We’ve been working with the CEI team for the last three years,” said Dustin Komen, Senior Project Manager for the CEI projects in Oakland, Livermore, and El Sobrante, CA. “There is a lot of community development in each of these projects. In addition to constructing these facilities, we’ve participated in several fundraising events and have donated about $25,000 toward their projects so far.” 

Case Study: Ronald McDonald House Charities 

Ronald McDonald House Charities is an international nonprofit that provides housing to families with hospitalized children. These houses are minutes away from hospitals and medical facilities, which allow parents and family members to live for extended periods of time while their children undergo lifesaving treatments. We partnered with the local chapter of Ronald McDonald House Charities to build additional housing and common areas near Rady Children’s Hospital in San Diego. Initially, the organization had budgeted $10 million for the expansion. However, it took more than two years to raise the necessary funds. Changes in material costs over those two years resulted in a $2 million budget shortfall. 

Undeterred, our team examined the original project proposal to find ways to complete the project within the new budget constraints. After thorough analysis, we proposed a new Variable Refrigerant Flow (VRF) HVAC system. This system is a modern HVAC solution that allows independent temperature control in multiple zones without relying on a central plant. With the new system, there would not be any need for extensive replacement of the existing central plant system. By reducing the labor, material, and logistical costs, we were able to save $2 million and give RMHC a state-of-the-art facility for families to be together for extended periods of time.   

Case Study: Home Start 

Home Start, an organization that provides housing for expectant mothers – selected us to build their project in the South Park neighborhood of San Diego. We knew fundraising could be a concern, especially given their project timeline. As such, we partnered with HomeAid San Diego to unlock project savings with their vendor network along with the help of local subcontractors and material providers. Ultimately, we were able to execute the project for 20% less than the original budget, enabling Home Start to deliver a higher quality environment for their clients and overcome several unforeseen expenses that were encountered throughout the course of the project without having to raise additional funds. 

We Can Help Build Solutions That Support Your Mission 

Skyline’s expertise in both residential and commercial construction allows for the seamless integration of nonprofit projects, especially those requiring a blend of residential living, amenity spaces, and community-based resource centers that are vital to the needs of those who are at risk. 

Whether it is affordable housing developments with integrated community centers or complex renovations, our ability to navigate the intricacies of nonprofit funding ensures projects stay on track and within budget. By leveraging strong relationships with subcontractors and vendors, Skyline consistently finds innovative, cost-saving solutions to help nonprofits realize their vision without sacrificing quality. 

As Carl Haines, one of our most seasoned experts in this sector expressed, “For us, it is about giving back to the community. You really have to understand the mission behind the project and earn the buy-in from everyone involved.”  

This approach enables Skyline to deliver successful projects that not only meet the needs of the nonprofit but also positively impact the community they serve. 

Our team’s extensive experience and national reach mean we can bring knowledge and creative ideas to the table on any nonprofit construction project. Contact us to learn more about how we work with nonprofit organizations to execute successful renovations and tenant improvement projects.