HomeMy WebLinkAbout2001-03-19 City Council (12)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:CITY MANAGER’S
OFFICE
CMR: 172:01
DATE:MARCH 19, 2001
SUBJECT: NON-PROFIT FACILITES AND SERVICES SURVEY
This is an information report and no Council action is required.
DISCUSSION
On May 23, 2000, the Palo Alto City Manager and Palo Alto Unified School District
(District) Superintendent released a joint recommendation to the City Council and Board
of Education that each be authorized to conduct a Joint Master Plan of school/community
facilities and services, including the exploration of creative land use and design solutions,
and investigation of a variety of long-range funding sources for school/community
facilities.
At the May 30 Council/School Board meeting where approval to proceed with the Joint
Master Plan was given by the City Council and School Board, concern was expressed
about the perceived facilities crisis for non-profits in the community, with the hope that it
might be alleviated by joint use of City/District facilities. Although this was ’beyond the
scope of the master planning effort, staff recognized the desirability of developing further
information on the facilities needs of non-profits and undertook a separat~ information
gathering effort to assess these needs. An advisory committee of chief executives from
major non-profits in Pal0 Alto that serve a broad range of community services was
formed and a separate consultant was retained to perform a needs assessment for non-
profits.
The results of the survey were discussed in the March 12, 2001 staff report to the Council
on the status of the Joint Master Plan. Attached is the final report, which includes an
executive summary.
RESOURCE IMPACT
Funding for the non-profit survey was provided from the City Manager’s contingency
fund.
CMR:I72:01 Page 1 of 2
TIMELINE
The results of the urvey wall be ~ncorporated into Phase 2 of the Joint Master Plan, the
workplan of which includes development of a City policy for use of community facilities
by non:profits.
PREPARED BY:
Assistant City Manager
CITY MANAGER APPROVAL:
FR)kN~ BENEST
City Manager
ATTACHMENT
City of Palo Alto Nonprofit Survey Final Report March 2001
CMR: 172:01 Page 2 of 2
City of Palo Alto
Nonprofit Survey Final Report
March 2001
For more information contact:
Emily Harrison
Assistant City Manager
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
(650) 329-2533
Report produced byMegan Swezey Fogarty
In collaboration with the City of Palo Alto Nonprofit Advisory Committee
Acknowledgements
The City of Palo Alto extends its thanks to the members of the Nonprofit Advisory Group
and the survey team for their participation in this project.
Nonprofit Advisory Group
Eve Agiewich, Human Relations Commission
Sue Barkhurst, Adolescent Counseling Services
Bruce Davis, Arts Council of Silicon Valley
Margo Dutton, Palo Alto Community Child Care
Lisa Hendrickson, Avenidas
David Howell, First Congregational Church
Lynda Steele, Community Association for Rehabilitation
Survey Team
Jill Addison-Jacobson, Data Processing
Mark Batenburg, Survey Layout
Megan Swezey Fogarty, Survey Facilitator
City of Palo Alto Staff
Kathy Espinoza-Howard
Linda Hall
Emily Harrison
Audrey Seymour
Additionally, the City thanks Geoff Ball, Geoff Ball and Associates; Jeanne Peters,
CompassPoint Nonprofit Services; and Sandi M. Tatman, College of Notre Dame, for
advice on instrument design; and the following organizations for sharing nonprofit lists:
Avenidas, Palo Alto Community Child Care, Palo Alto Endowment Fund, Palo Alto
Ministerial Association, Palo Alto Weekly Holiday Fund, Peninsula Library System
Community Information Program, Santa Clara County Supervisor Joe Simitian, YMCA
of the Mid-Peninsula, and Youth Community Service.
TABLE OF CONTENTS
Page
I.EXECUTIVE SUMMARY
II.INTRODUCTION 4
III.METHODOLOGY
Selection of Survey Respondents
Survey Design
Data Collection and Analysis
4
5
6
6
IV.
VI.
FINDINGS
Profile of Palo Alto Nonprofits
Current Nonprofit Facility Arrangements
Future Facility Needs
Summary of Open Question Responses
CONCLUSION
ATTACHMENTS
List of Survey Respondents
Survey Instrument
7
7
10
15
18
18
20
City of Palo Alto Nonprofit Survey Report 1
I. EXECUTIVE SUMMARY
The City of Palo Alto has a long history of supporting nonprofits in their work to address
community needs. In response to recent economic and demographic trends, the City
conducted a survey of Palo Alto’s nonprofit community in tandem with the City and
School district’s joint facility study. The purpose of the nonprofit survey was to gain an
understanding of the landscape of Palo Alto’s nonprofit organizations and collect specific
data on current and projected facility needs. The survey was developed by a consultant in
collaboration with nonprofit leaders and City staff, and distributed during January 2001.
The survey was mailed to 192 nonprofit organizations and 106 surveys were completed
(55% return rate). The following is a summary of the key survey findings.
A Picture of Palo Alto’s Nonprofits
¯ Palo Alto is home to a wide range of nonprofits serving diverse populations. While
38% of respondents report that they serve the general population, the remaining 62% are
fairly evenly distributed among more specific populations (preschool aged children,
children grades K-12, adults, families, seniors, people with disabilities, and low income
people).
¯ Nonprofit agencies are significant economic players. Of those reporting information:
-The total nonprofit operating expenses exceed $103 million;
-Nonprofits employ nearly 2,000 people;
-Nonprofits involve nearly 20,000 volunteers;
-Nonprofits serve over 33,000 unduplieated clients; and
-Nonprofits own 30 properties.
¯ While occupancy costs and availability appear to be impeding some organizations’
ability to serve the Palo Alto community, labor issues, particularly the ability to recruit
qualified employees and provide competitive wages, are an equal or greater challenge.
Current Facilities
¯ Nonprofits have been shrewd in their strategies to secure facilities.
21% operate in space owned by the nonprofit organization
- 16% operate in space that is commercially leased
- 10% operate in space that is leased from a church or other religious entity
- 20% operate in space leased from the City of Palo Alto or another government entity
- 16% operate in space provided free of charge
- 17% operate in other kinds of space (includes homes and space leased from other nonprofits)
City of Palo Alto Nonprofit Survey Report 2
¯ Thirty-one nonprofit agencies report that they have leases that expire in 2001 or 2002
and thus are most vulnerable to economic fluctuations.
¯ The City of Palo Alto’s role in providing space to nonprofits is significant. In addition
to the 15% with lease agreements, another 10% of survey respondents have other kinds of
facility arrangements with the City of Palo Alto. Thus, 25% of nonprofits that returned
surveys benefit directly from City facilities.
¯ The role of churches in providing space must also be recognized. Thirteen agencies
report that they operate in facilities leased from churches. Although it was not addressed
specifically, church leaders indicated aneedotally that a number of nonprofits use church
facilities for programmatic purposes. Since 14 of the 27 nonprofits that own property in
Palo Alto are churches, they are critical to supporting nonprofit facility needs.
¯ Of the 22 organizations engaged in commercial lease agreements, the majority of
organizations lease at rates below market value. Despite this, the average of most recent
rent increases is 25% and the average next projected rent increase is 42%. Nonprofit
organizations involved in commercial lease arrangements are vulnerable to market
fluctuations in the California Avenue, Downtown and San Antonio areas where they are
concentrated.
¯ Twenty-seven nonprofit organizations own 30 properties. The average length of
ownership is 39 years. Several survey respondents conveyed that aging facilities are in
need of capital improvements.
Future Services and Space Needs
¯ The majority of survey respondents estimate that demand for their services will increase
over the next 10 years.
-25% estimate demand for their services will stay the same.
-55% estimate demand will increase (up to 50%)
-19% estimate demand will increase significantly (more than 50%).
No organizations estimate that demand for their services will decrease.
¯ While 20 organizations report having over 23,000 square feet of space that might be
available for use by other nonprofit organizations, 70% of this space is large or small
classroom space geared toward episodic use.
¯ Thirty-eight percent of nonprofit organizations report that during the next decade they
will need 25% or more space than they currently use in order to meet demands for
services they currently prgvide. When asked what kinds of space they will need, 51% of
the responding organizations indicated they need dedicated space to use for client
services, administrative or program offices, and storage.
City of Palo Alto Nonprofit Survey Report 3
¯ Fifty-five percent of respondents are "interested" or "very interested" in one or more of the
following kinds of cooperative arrangements: shared use of the same facility, shared staffing,
shared administrative functions, and shared funding and fund development.
¯ It appears that in the next decade, a number of nonprofit facility projects will be
considered and may be developed simultaneously in Palo Alto. As older facilities also
need renovation, nonprofits may be challenged by competition for capital campaign
funds.
¯ From the nonprofit point of view, the following would be beneficial:
continued use of City property for nonprofit services;
additional dedicated space to meet nonprofit service demands;
simpler City processes for approval of facility upgrades and disbursement of
public funds.
acknowledgement of and perhaps incentives for commercial landlords and
churches that provide low-cost lease arrangements for nonprofits;
planning to insure that new and upgraded facilities are functionally appropriate
for nonprofit use (ex. child care and performing arts spaces);
provision of dedicated parking for nonprofit employees, volunteers, and clients in
business districts;
meeting room(s) that nonprofits can use at no cost for periodic meetings; and
a forum for nonprofits to exchange information about space needs and
opportunities, and discuss options for joint use arrangements.
City of Palo Alto Nonprofit Survey Report 4
H. INTRODUCTION
The City of Palo Alto has historically supported nonprofit organizations in their work to
serve community needs. In addition to allocating funding and establishing program
partnerships, the City has emerged as a unique and significant facility provider. Some of
this support is the result of the bequests of community philanthropists such as Lucie
Stern, Elizabeth Gamble, and Rhona Williams who deeded property to the City. Other
support evolved in response to growing community needs in such areas as child and elder
care, or threatened losses of treasured community programs such as the Winter Lodge ice
skating rink. Perhaps the most intentional support emerged in the 1980s when the City
pursued land use agreements to create community centers after public schools were
closed due to declining enrollment. This eventually’led to joint use and the development
of community centers at the former Cubberley, Terman, and Ventura school sites and the
arrangement for City-supported after-school programs on all public elementary school
campuses. Throughout this history, Palo Alto’s citizens have been active participants in
decision-making processes and stalwart in communicating community priorities in
determining uses for City property.
In recent years, economic and demographic trends have led to concern about the long-
term feasibility of joint use sites and more generally the ability.of nonprofits to keep pace
with escalating rents in Palo Alto. Last year, Palo Alto Unified School District
announced the need to re-open a middle school at the Terman Community Center site,
resulting in the displacement of the Jewish Community Center and other nonprofit
services that lease space at Terman. At the May 30, 2000 City Council/School Board
meeting, concern was expressed about the perceived facilities crisis for non-profits in the
community, with the hope that it might be alleviated by joint use of City/District
facilities. City staff recognized the desirability of gathering further information on
nonprofit facility needs and undertook a survey effort to assess these needs in tandem
with the City and School district’s development of a master plan for joint use of former
school sites and other city facilities.
During Fall 2000, an advisory committee of chief executives representing Palo Alto non-
profits was formed and a consultant was retained to perform the nonprofit survey. The
purpose of the survey was to gain an understanding of the landscape of Palo Alto’s
nonprofit organizations by collecting specific data on projected services and facility
needs and assessing how current trends might impact the fabric of services available to
the community. The survey also provided an opportunity to gather data that would be
widely useful to the City, nonprofit and philanthropic organizations, and the larger
community in sustaining the strength of Palo Alto’s nonprofit community.
III. METHODOLOGY
The City decided to conduct a written survey of nonprofit organizations with the
guidance of a representative group of nonprofit leaders. In August 2000, the City
Manager’s Office formed a Nonprofit Advisory Committee. Over the course of five
City of Palo Alto Nonprofit Survey Report 5
meetings, the group worked with a consultant and city staff to complete the following
tasks:
¯ help identify the nonprofit organizations to be included in the survey;
¯ provide input into the creation of the survey instrument; and
¯ review the analysis of survey findings.
In preparation for developing the survey instrument, the Nonprofit Advisory Committee
outlined the following current trends facing nonprofit organizations as the context for the
survey:
¯ occupancy costs and availability;
¯ labor issues including reduction and closure of services caused by lack of professionals,
long commutes related to housing issues and staff living outside the community, and
competition with private sector for wages;
¯ innovative responses to labor issues: flexible hours, degree support, and benefits;
¯ exploding senior population and increase in need for earegiver services;
¯ child care staff moving into public school classrooms and more interest in part-time
child care;
¯ increase in referrals and early intervention programs;
¯ increase in need for adolescent support as school population grows and
15% increase in substance abuse sessions for adolescents;
¯ increase in organization capacity grants and decrease in United Way operational
income;
¯ mergers of nonprofits that expand service areas and impact remaining nonprofits;
¯ perception that Palo Alto is not needy;
¯ job of board members is more challenging; and the
¯ increase in volunteer numbers, but a decrease in ability to make long-term commitments.
Selection of Survey Respondents
The Nonprofit Advisory Committee determined the survey audience to be all 501(c)3
nonprofit organizations, including faith organizations, located in Palo Alto. In addition,
for-profit child care centers and organizations operating in bordering communities that
requested to participate in the survey were included. Because no comprehensive list of
Palo Alto nonprofit organizations existed, a database was developed by combining lists
from Avenidas, Family Resources, Palo Alto Community Child Care, Palo Alto
Endowment Fund, Palo Alto Ministerial Association, Palo Alto Weekly Holiday Fund,
Peninsula Library System Community Information Program, Santa Clara County
Supervisor Joe Simitian, YMCA of the Mid-Peninsula (United Way Directory), and
Youth Community Service (Volunteer Center listing). The consultant confirmed contact
information and addresses. An initial database of 200 organizations was reduced to 192
due to organizations moving or asking to be omitted from the survey audience.
City of Palo Alto Nonprofit Survey Report 6
Survey Design
The survey was designed through a collaborative process involving the consultant, City
staff, and the Nonprofit Advisory Committee. As an initial step, the consultant
researched surveys conducted recently in the Bay Area, one by CompassPoint Nonprofit
Services (a survey of San Francisco nonprofits) and the other by Geoff Ball and
Associates (a survey of David and Lucile Packard Foundation grantees in Santa Clara and
San Mateo County). The consultant also reviewed a survey by Silicon Valley Council of
Nonprofits and questions suggested by City Council members, City staff and nonprofit
leaders. The Nonprofit Advisory Committee reviewed an initial list of questions and
discussed the following:
0 What kinds of questions best define critical trends in current and projected services and
facility needs?
¯What kinds of questions assess how trends might impact our community?
¯What kinds of questions would help us prioritize?
¯What kinds of questions would provide other information useful to the City, nonprofit
organizations, and philanthropy, among others?
From this discussion a draft survey was written by the consultant and finalized by the
Nonprofit Advisory Committee. Subsequently, the Nonprofit Advisory Committee
served as a pre-survey focus group in order to refine the survey questions. A complete
copy of the survey instrument can be found in the attachments.
Data Collection and Analysis
The seven-page survey, a cover letter from the City Manager’s office detailing the
purposes and benefits of the project, and a return envelope were mailed to the Executive
Director or equivalent contact person of each nonprofit organization in early January
2001. The survey included informational items designed to assist in the creation of a
nonprofit database, questions designed to provide a demographic and economic picture of
nonprofits, and questions designed to gather specific data on current and projected
facility needs. A concluding open question enabled additional input from survey
respondents~ To insure a high return rate, the consultant and advisory committee
members made follow-up calls to all nonrr.espondents.
A total of 106 surveys were completed and returned. This represents a 55% return rate.
Surveys were coded and tabulated using both quantitative and qualitative analysis
procedures. With input from the Nonprofit Advisory Committee, additional analysis was
completed.
City of Palo Alto Nonprofit Survey Report 7
IV. FINDINGS
Survey findings fall into four categories: data that provides a profile of Palo Alto’s
nonprofit organizations, data on current facilities, data on future facility needs and
interests, and a summary of responses to an open question.
Proffie of Palo Mto Nonprofits
As Table One shows, the majority of survey respondents are 501(c)3 organizations. Nine
respondents are sponsored projects of 501(c)3 organizations that operate as independent
organizations (e.g. Canopy and Youth Community Service). The non tax-exempt
organization is a for-profit child care agency.
Table 1 - Types of ?rganizations
Type of Organization Frequency
501()3 organization 69
Sponsored project of a 501(c)3 organization 6
Chapter or branch of a regional, state, or national 501(c)3 4
Organization
Govemment agency 1
A religious 501(c)3 organization 21
Non tax-exempt organization 1
Other (explain) - nonprofit professional association, 501[c]4 ¯4
(_N=106)
The survey asked respondents to indicate the focus areas that best describe their
organization’s services and one primary focus area. It also asked for populations served
and one primary population served. Tables Two and Three summarize this data.
Although this data is subjective, it does paint a picture of the diversity of needs and
populations served by Palo Alto’s nonprofit community. Of special note is the larger
number of organizations focused on arts/culture, education, and religion and the
relatively fewer number of organizations focused on adult day care, employment and.
training, and legal services (although this does not take into account the numbers of
people served by these organizations). Thirty-eight percent of organizations report that
they serve the general population. The remaining 62% are fairly evenly distributed
among more specific populations (preschool aged children, children grades K-12, adults,
families, seniors, people with disabilities, low income people, and other).
City of Palo Alto Nonprofit Survey Report 8
Table 2 - Focus Areas of Nonprofit Organizations
Response
Arts/Culture
Child Care
Education
Adult Day Care
Employment/Training
Environment
Health
Housing
Legal Services
Mental Health
Recreation
Religion
Multi-service
Other
Focus
Frequency
24
15
37
4
8
9
12
6
1
8
10
21
6
22
% of
Responses
15%
8%
20%
2%
4%
5%
7%
3%
1%
4%
5%
11%
3%
12%
Primary
Focus Area
Frequency
14
7
12
1
0
3
3
1
6
1
18
6
17
% of
Responses
’15%
8%
13%
1%
0
3%
4%
3%
1%
6%
1%
19%
6%
18%
"Other" includes: parent support and education, sustainable gardening, advocacy for families with attention and learning disorders.
collaboration, consumers - help people plan ahead of death, help people understand legal services - find attorneys, ecological approach to
value, breast feeding information and support, international relationships, homelessness, local issues, rehabilitation, senior services, public
garden, youth mentoring, community - international and local, financial help at Christmas, on-site parochial school, advocacy for UN and
support for Unicef, emergency and supplemental food, advocates urban forest, wildlife/animals, voter education and advocacy, public policy,
post stroke program, housing services, elderly lunch program, disabilities, and grief counseling and education.
Table 3 - Populations Served By Nonprofit Organizations
Response
Preschool aged children
Children grades k-$
Youth in grades 6-12
Adults
Families
Seniors
People with disabilities
Low income people
General population
Other
Population
Frequency
31
45
48
55
48
44
31
31
46
11
% of
Responses
8.0
12.0
12.0
14.0
12.0
11.0
8.0
8.0
12.0
3.0
Primary
Population
7
4
2
10
8
7
6
5
33
4
% of
Responses
8%
5%
2%
12%
9%
8%
7%
6%
38%
5%
"’Other" includes: students-undergraduates, teens on probation, infants and toddlers (3). mothers and infants, all of the above,
homeless people, youth to 24 years, people-humanitarian healers; primary also grades 6-12, urban wildlife, educators-policy makers -
media, victims of discrimination, owners, and property managers.
As a group, Palo Alto’s nonprofit organizations are significant economic players. Although
total operating expenses vary, of the 94 organizations providing information, the total of all
operating expenses equals $103,318,207. Sixty-eight percent of organizations responding (or
a total of 72 organizations) have annual operating expenses under $1,000,000.
City of Palo Alto Nonprofit Survey Report 9
Table 4 - Total Operating Expenses Ranges
SIZE
Under $1,000,000
FREQUENCY
72.
Under $20,000 12
$20,000-$99,999 19
$100,000-$499,000 30
$500,000-$999,000 11
$1,000~000-$1,999,999 8
$2,000,000-$2,999,999 5
$3,000,000-$3,999,999 2
$4,000,000-$9,999,999 5
OVER $10,000,000 2
NO ANSWER PROVIDED 12
(N--lOS)
The economic force of Palo Alto’s nonprofits is also_ demonstrated by other measures. Of
those reporting information:
¯105 nonprofits employ a total of 847 part-time staff
¯102 organizations employ a total number of 1072 full-time staff.
¯103 organizations involve a total of 19,948 volunteers annually.
¯86 organizations serve a total of 33,040 unduplicated clients.
The data also shows that Palo Alto’s nonprofits are deeply rooted.in the community.
While most serve clients from outside the city, many were founded to serve specific
community needs and several have "Palo Alto" in their names. When organizations were
asked whether they need to be located in Palo Alto in order to continue to serve Palo Alto
clients, 63% answered "yes", 23% answered "no", and 14% answered "it depends."
(N=105) Most who answered "it depends" indicated they could be located in neighboring
towns, but need to be close to Palo Alto.
When asked to estimate how demand for their services in Palo Alto will change over the next 10
years, 25% answered that demand will stay the same, and the remaining respondents answered
either that demand will increase or increase significantly. No organization indicated that
demand for their services will decrease. (see Table Five)
Table 5 - Projected Demand for Services Over the Next 10 Years
Response
Decrease significantly (more than $0 %)
Decrease (up to $0 %)
Stay the same
Increase (up to $0%)
Increase significantly (more than $0 %)
(N=103)
Frequency
26
57
2O
% of Responses
0
0
25%
55%
19%
City of Palo Alto Nonprofit Survey Report 10
Current Nonprofit Facility Arrangements
Palo Alto nonprofits have been both shrewd and innovative in finding cost-effective facility
arrangements. Facility arrangements are fairly evenly distributed among leases from the City of
Palo Alto or other government agencies, space owned by the nonprofit, space provided free of
charge, commercial leases, and other arrangements. Sixteen percent of respondents operate in
space they receive at no cost and another 10% have space in Palo Alto churches. Of special
note is the property at 3921 East Bayshore Road where a cluster of environmental organizations
leases space from a nonprofit foundation (shown in "other").
¯Table 6 - Current Facility Arrangements
Response
space owned by. the nonprofit organization
space that is commercially leased
space leased from a church or other refigious
space leased from the City of Palo Alto
space leased from another government entity
space provided free of charge
Other: in home, lease land own building, lease
from another nonprofit, other space
(N=134) Note:
Frequency
28
22
13
2O
7
21
23
Some organizations have multiple sites and multiple arrangements.
% of Responses
21%
16%
10%
15%
5%
16%
17%
Nonprofit Organizations Which Own Property
A total of 27 nonprofit organizations (25% of respondents) own 30 properties in Palo
Alto. Fourteen of these are religious organizations. The combined square footage is
436,606 square feet with a range from the smallest facility with 1,500 square feet to the
largest facility with 62,000 square feet: The range of ownership is from 1 year to 106
years. The average length of ownership is 39 years.
Nonprofits Involyed in Leases
Sixty-four respondents (60%) are involved in some kind of lease arrangement and thus
are vulnerable to economic fluctuations and the interests of the landowner whether a
government agency, church, another nonprofit, or a private owner. Thirty-one nonprofit
agencies report that,they have leases that expire in 2001 or 2002 and are thus the most
insecure. One agency, Palo Alto Community Child Care, has nine different leases that
expire in the next two years. Nonprofits that lease report an average most recent rent
increase of 13.3% and project an average next rent increase of 13.8%.
The importance of affordable space provided by the City of Palo Alto cannot be underestimated.
Beyond the 15% who indicate their organization operates in space leased from the City of Palo
Alto, another 10% (shown in "other") have other kinds of facility arrangements that either do
not involve leases or are for programmatic purposes (e.g. Friends of the Palo Alto Library).
Thus 25% of nonprofits that returned surveys benefit directly from City facilities. Thirty-seven
City of Palo Alto Nonprofit Survey Report 11
percent of organizations with.the primary focus of arts/culture lease from the City of Palo Alto
and appear to be the group of nonprofits most at risk should this City support change.
The role of churches in providing facilities for nonprofits must also be recognized. Thirteen
agencies report that they operate in facilities leased from churches. Although it was not
addressed specifically in the survey, church leaders indicated anecdotally that a significant
number of nonprofits from Palo Alto and the larger region use church facilities for
programmatic purposes.
Twenty-two organizations (21% of respondents) are involved in commercial leases.
Organizations with commercial leases are fairly evenly divided among those that indicate
their focus areas to be arts/culture, child care, education, health, environment, and legal
services. Nineteen of these organizations reported, enough information to compare
commercial leases among nonprofit organizations. As Table Seven shows, commercial
lease arrangements are clustered in the Downtown, California Avenue/El Camino, and
the Middlefield/San Antonio Road areas. Only one organization (Property E - a child
care center in the Downtown area) appears to be paying close to full market rate for their
commercial space. The average most recent rent increase is 25% (n=16). The average
percent of next rent increase expected is 42% (N=10). Almost half of the commercial
leases will expire in 2001 or 2002.
¯ Table 7:l-Commercially-Leased Facilities Downtown
Address
Downtown
Property A
Property B
Property C
Property D
Property E
Current
Cost per
Sq. foot
$2.70
$2.92
$ .62
$8.33
Lease
Expires
12/2002
312003
8/2001
Month to
month
7/2002
Can you
renew
your
lease?
Yes
Yes
Yes
Yes
Percent
increase of
most recent
rent
increase
10%
10%
4O%
15%
If can renew,
estimate of
percent rent increa
expected
15%
City of Palo Alto Nonprofit Survey Report 12
Table 7.2 - Commercially Leased Facilities-California Avenue/El Camino,
Address Current Lease Can you Percent
CA Avenue/
~l Camino
Property F
Property G
Property H ¯
Property I
Property J
Property K
Property L
Property M
Property N
Cost per
Sq. foot
$1.88
$2.05
$1.49
$3.60
$3.00
$2.22
$1.14
$1.14
Expires.
4/2001
6/2009
112006
12/2001
112002
4/2005
12/2001
5/2001
renew
your
lease?
Yes
Yes
Yes
Yes
Yes - annual
lease
Yes
Hope so
Yes
Yes
increase of
most recent
rent increase
lO%
2%
0
7.5%
72%
50%
6%
5%
If can renew,
estimate of
percent rent inere~
expected
lO%
unknown
100%
7.5%
80%
100%
5%
City of Palo AltO Nonprofit Survey Report 13
Table 7.3 Commercial Leased Facilities-San Antonio Road/Middlefield Road
San Antonio/ ,
Mlddlefield
Property O $3.33 4/2004 ?40%
Property P $1.58 7/2002 ?40%40%
Property Q $’ .83 1/2006 Yes 12%10%
Property R $3.25 11/2005 Yes 70%50%
Property S $3.19 6/2002 Yes 3%
Notes for Tables 7.1 and 7.2 and 7.3: Blank spaces indicate that no answer was provided. TwO agencies checked that they were
involved in commercial leases but did not provide additional information. A third agency leases warehouse space in Menlo Park and
is not included in this table. Square foot lease rates are calculated from rental rates and square footage provided.
Comparison of Lease Rates
As noted above, the data demonstrates that Palo Alto’s nonprofit organizations have secured
lease arrangements below commercial market rates. Table Eight compares the average rates per
square foot between current nonprofit arrangements and current commercial office and research
and development rates. The City of Palo provides the lowest lease rate.
Table 8 - Nonprofit and Commercial Lease Rates Compared
Lease Arrangement Average Rate/Square Foot
A. Nonprofits leasing from City of Palo $.88/SF
Alto at Cubberley Community Center
B. Nonprofits leasing from a church or
other religious organization
C. Nonprofits leasing commercially
D. Commercial Office Lease Rate
Citywide (January 2001)
E. Commercial Research and
Development Lease Rate Citywide
(January 2001)
$.94/SF
$2.36/SF
$9.04/SF
$8.32/SF
City of Palo Alto Nonprofit Survey Report 14
Table 8 notes: Items A, D, E were provided by the City of Palo Alto. For Item B, 13 nonprofits indicated
lease arrangements from churches or other religious organizations. Of these, three were excluded that did
not provide lease amounts and two were excluded that were assumed to be programmatic arrangements.
For Item C, 22 nonprofits indicated commercial lease arrangements. Of these, three were excluded - two
did not provide additional information and one leases warehouse space in Menlo Park. For items B and C
organizations were omitted that receive their space free of charge.
Space Currently Available from Nonprofits
When nonprofit organizations were asked whether they have space that might be
available for use by other nonprofits, respondents reported a total of 23,150 square feet of
space that might be available. The 22 organizations listed below reported some kind of
space might be available for use by other nonprofits. It is important to note that the
survey did not ask about lease rates, time availability, or other restrictions nonprofits
might have in leasing space to other nonprofits.
Adult & Child Guidance Center/Family Service Mid-Peninsula
All Saints Episcopal Church
Ananda Church of Self-Realization
CAR
Church of Scient01ogy (occasional small classroom space)
Clara-Mateo Alliance, Inc.
Congregation Emek Beraeha
Crossroad Community Church
Dance Visions/Dance Action, Inc.
First Christian Church
First Congregational Church
First School Preschool
Gamble Garden (occasional small rental space may be available)
MAGIC
PARCA-Page Mill Court Housing
Palo Alto Area Red Cross
Recording for the Blind and Dyslexic (meeting room in 2002)
St. Andrew United Methodist
Stevenson House
Trail Center
Unity Palo Alto Community Church
YWCA of the Mid-Peninsula
Kinds of Space Currently Available from Nonprofits
Table Nine shows the kinds of space that nonprofits report they currently have available
for use by other nonprofits. It appears that 70 percent of space available is large space
and small classroom space which are generally for more occasional uses and fluctuates
depending on the needs of the leasing nonprofit. Some of the "other" answers include
City of Palo Alto Nonprofit Survey Report 15
space for child care (YWCA), a swim center (CAR), and space that might be available if
use restrictions could be changed.
Table 9 - Kinds of Space Nonprofit Organizations Mig
Response
Large space for activities of clients (e.g. fitness)
Small classroom space
Private space in which to serve clients 2
Administrative or program office space 2
Storage space 0
Athletic fields O
No space is available 0
Other 7
(N=36) Note: some organizations checked multiple kinds of space.
Frequency
13
13
ht have Available
% of Responses
35%
35%
5%
5%
0
0
0
19%
Future Facility Needs
Respondents were asked to estimate how much additional space they will need in Palo
Alto in the next 10 years to meet demands for services they currently provide. As Table
10 shows, the majority report the need for some amount of additional space for services
they currently provide.
Table 10 - Space needed for current services
Response
S0% or more space than currently used
2S%-49% more space than currently used
0%-24% more space than currently used
Don’t know how much space will be needed
Other
(N=100)
Frequency
26
12
35
16
11
% of Responses
26%
12%
35%
16%
11%
Comments in response to "other" included several that specified that no additional space was
needed, two that indicated they could benefit from space but don’t need it, and the remainder
that provided specifications for the kinds of space needed.
Table 11 shows the kinds of space in Palo Alto that nonprofits indicate they will need in the
next ten years. Twenty-nine percent of responses indicate the need for large activity and small
classroom space. Fifty-one percent of responses were for more dedicated space including
private space in which to serve clients, administrative or program office space, and storage
space. Space needs described in the "other category" include outside display space for
vegetable and flower starts, meeting space, theatre space with related rehearsal space, pool
access, wall space at City Hall, low-income housing, community media center, monthly meeting
room, expansion of current space, space to accommodate a K-8 school, swimming pools and a
gymnasium, animal clinic and aviary, dining and cooking facilities, and parking, among others.
City of Palo Alto Nonprofit Survey Report 16
Large activity space (fitness classes, large mtgs.)
Small classroom space
Private space in which to serve clients
Administrative or program office space
Table 11 - Kinds of Space Needed in the Next 10 Years
Response Frequency
29
27
25
% of Responses
15%
14%
13%
22%
Storage space
Athletic fields
No additional space is currently needed
Other
Note: Many nonprofits indicated the need for multiple kinds of spaces.
32
4
21
15
16%
2%
11%.
8%
Many nonprofits report the need for additional space; yet, when asked to indicate the
likelihood of various results (on a scale of 1-5 with five being "most likely") if affordable
space could not be found in Palo Alto, the likelihood was neutral at best that the lack of
affordable space would result in stated changes to their organization. Perhaps nonprofits
do not seek economies of scale which would necessitate growth, either because their
activities don’t lend themselves to such economies, or because their management
practices don’t take this into account. As Table 12 shows, the most likely result was
"will not expand to meet needs." Sixteen organizations provided additional possible
results in the "other" category. These included: moving to private homes, securing space
in adjacent communities, getting space donated or at low cost, and continuing to have a
crowded dining-room, among others.
Table 12 - Likelihood of the following results if an organization’ cannot find affordable
space in Palo Alto within the next 10 years.
(1) (2) (3) (4). ($)
Not Somewhat Neutral Likely Very
likely likely likely
2.2
2.4
1.8
3.2
1.9
(a)Curtail programs, downsize
(b)Move to another nearby community
(c)Cease doing business
(d)Will not expand to meet needs
(e)Join forces/merge with another organization
(N=82)
City of Palo Alto Nonprofit Survey Report 17
Factors lmpedin_~ the Work of Palo Alto’s Nonprofit Organizations
As noted in the Methodology section, nonprofit leaders involved in the survey design
were keenly aware of multiple trends currently facing nonprofits. As Table 13 illustrates,
survey results showed that while occupancy costs and availability are one factor
impeding nonprofit agencies from serving the Palo Alto community, thisfactor was
equally or less often selected when nonprofits were given a list of factors. "Other"
responses included: parking for clients and volunteers, accessibility for handicapped, cost
of retaining staff, excessive non-residential construction, declining membership, and lack
of performance opportunities, among others.
Table 13 - Factors Currently Impeding Nonprofit Organizations’ Abilit
Response
Occupancy costs and availability
Paid labor shortages
Volunteer labor shortages
Competition for funds
Inability to provide competitive wages
Cost of recruiting staff
Other
(N--~)
Frequency
40
38
33
35
46
37
19
to Serve the Community
% of Responses
16%
15%
13%
14%
19%
15%
8%
.loint Use
When asked to indicate their level of interest in various types of cooperative arrangements with
other nonprofits (on a scale of 1-5 with five being "very interested"), the averages of responses
show that respondents are somewhat interested to neutral about cooperating with other
nonprofits (see Table 14). Despite these averages, 58 organizations gave a "4" or "5" to one or
more factors. Thus, 55% of respondents are "interested" or "very interested" in one or more
cooperative arrangements. "Other" comments provided additional ideas for cooperative
arrangements: shared transportation, vans, buses; a staff substitute pool; shared performances
that offer more variety to the public and split workload; conferences; and purchase of a facility.
Table 14 - Level of Interest in Types of Cooperative Arrangements
(1)(2) (3)(4)
Not Somewhat Neutral Interested
Interested Interested
(~)
Very
Interested
2.9
2.2
2.1
2.5
(a)Shared use of the same facility
(b)Shared staffing
(c)Shared administrative functions
(d)Shared funding and fund development
City of Palo Alto Nonprofit Survey Report 18
Summary of Open Question Responses
The survey concluded with a final open question asking, Is there anything else you would
like us to know about service or facility Wends facing your nonprofit organization?
Several themes emerged through the content analysis of respondents’ answers.
¯ Survey respondents noted the following additional trends in service areas:
-costs and scarcity of land available for affordable housing
-need for increases in services for the elderly in South Palo Alto.
-demand for help as the gap between "haves" and "have-nots" increases.
-uncertainty about whether young families will be able to afford to live here.
¯ Design and Availability of Facilities. Nonprofits are concerned about the quality and
availability of facilities especially for performing arts groups. They hope for new
facilities that are designed with consideration to the functional needs of nonprofits.
¯ Uncertainty about the Future. Nonprofits are concerned about the costs of facilities, the
need to make building improvements especially to aging facilities, their ability to
continue to secure long-term leases and address impending rent increases, and the future
of joint use facilities.
¯ Obstacles. Nonprofits want simpler City processes and support to overcome obstacles
such as parking and the need for meeting space.
¯ Commitment to Palo Alto. Many respondents commented on their length of service to
the Palo Alto community and hopes to serve the community for years to come.
V. CONCLUSION
Survey results suggest that while there is not a facility crisis among nonprofits as a
whole, some are currently at risk and there exist a number of warning signs that provide
opportunities for action.
¯ During the next decade, the majority of nonprofits project that demand for their services
will increase. To meet current and future demand, nonprofits will need dedicated space
that is currently not available.
¯ Nonprofits have clearly come to rely on affordable lease arrangements. Changes in the
City of Palo Alto’s, churches’, or commercial landlord’s policies and practices could
impact the many focus areas and populations served by Palo Alto’s nonprofits. Although
the survey did not ask nonprofits to indicate how much of a rent increase their budgets
could bear, most of Palo Alto’s nonprofits have smaller budgets and capital funds are
often more difficult to raise than program funds.
City of Palo Alto Nonprofit Survey Report 19
¯ It appears that in the next decade, a number of nonprofit facility projects are hoped for
and may be developed simultaneously in Palo Alto. As older facilities also need
renovation, nonprofits may be challenged by competition for capital campaign funds.
¯ During the administration of this survey, several nonprofit organizations left Palo Alto.
Their story is not told.
From the perspective of nonprofits, the community would benefit from:
continued use of City property for nonprofit services;
additional dedicated space to meet nonprofit service demands;
simpler City processes for approval of facility upgrades and disbursement of
public funds.
acknowledgement of and perhaps incentives for commercial landlords and
churches that provide low-cost lease arrangements for nonprofits;
planning to insure that new and upgraded facilities are functionally appropriate
for nonprofit use (ex. child care and performing arts spaces);
provision of dedicated parking for nonprofit employees, volunteers, and clients in
business districts;
meeting room(s) that nonprofits can use at no cost for periodic meetings; and
a forum for nonprofits to exchange information about space needs and
opportunities, and discuss options for joint use arrangements.
The nonprofit survey f’mdings provide an opportunity for the City of Palo Alto, Palo Alto
Unified School District, nonprofit organizations, philanthropic groups, and the larger
community to continue to collaborate to sustain Palo Alto’s nonprofit community through
strategically planned use of community facilities. In this way, we will continue our
community’s tradition of valuing and supporting nonprofit organizations as they work to
serve Palo Alto’s citizens.
Survey Respondents
List of A_oencies ResDondin_o to Survey
ACHIEVE
Adolescent Counseling Services
Adult and Child Guidance Center
Albert L. Schultz Jewish Community Center
All Saints Episcopal Church
ALLIANCE for Community Care
Ananda Church of Self-Realization J
Avenidas
Baha’i Faith of Palo Alto
California Youth Symphony
Canopy: Trees for Palo Alto
CAPA
Center for New Beginnings
Christmas Bureau of Palo Alto
Church of Christ at Palo Alto
Church of Scientology Mission of Palo Alto
Citizens Committee to Complete the Refuge
Clara-Mateo Alliance, Inc
Committee for Green Foothills
Common Ground/Ecology Action
Community Association for Rehabilitation (CAR)
Community Breast Health Project
Community Skating Inc. - Winter Lodge
Community Working Group, Inc.
Congregation Emek Baracha
Covenant Presbyterian Church
Creative Health Network
List of Aaencies Res~)ondina to Survey
Crescent Park Community Child Care
Crossroads Community Church
DanceVisions/Dance Action, Inc.
EdSource, Inc.
El Camino Youth Symphony
Environmental Volunteers¯
First Christian Church
First Church of Chdst, Scientist
First Congregational Church
First Congregational Church Nursery School
First Lutheran Church
First School Preschool
First United Methodist Church
Foundation for a Global Community
Friends of the Palo Alto Library
Funeral Consumers Alliance
Grace Lutheran Church
Heads Up! CDC
Hua Kuang Chinese Reading Room
Intervarsity Christian Fellowship
Islamic Society of North America (ISNA - West)
Kara
. Kitty Petty ADD/LD Institute
Kurt and Barbar Gronowski Clinic
La Comida de California
La Leche League Mid-Peninsula
¯ Leadership Mid-Peninsula
List of A_aencies Resoondin_a to Survey
League of Women Voters of Palo Alto
Magic, Inc.
MayView Community Health Center
Mid-Peninsula Access Corporation
Mid-Peninsula Citizens for Fair Housing
Mid-Peninsula Home Care and Hospice Services
Mini Infant Center of Palo Alto~
Museum of American Heritage
Neighbors Abroad - Palo Alto Art Center
Pacific Art League of Palo Alto
Palo Alto Area Bar Association
Palo Alto Area Red Cross
Palo Alto Community Child Care
Palo Alto French Film Society
Palo Alto Friends Nursery School
Palo Alto Housing Corporation
Palo Alto Muslim Community Center (PAMCC)
Palo Alto Parents and Professionals for Art
Palo Alto Philharmonic
Palo Alto Players
Palo Alto VA Child Development, Inc. Whistlestop CDC
PARCA: Page Mill Court Housing
Parents Leadership Institute
Peninsula Bible Church
Peninsula Clef Hangers
Peninsula Ctr. for the Blind & Visually Impaired
Peninsula Day Care Center
List of Aoencies ResDondino to Survey
Peninsula Women’s Chorus/Foothill College
Private Party Productions Inc.
Raices de Mexico
REACH Program/Foothill College
Recording for the Blind & Dyslexic
Red Thistle Dancers
Ronald McDonald House at Stanford
Second Church of Christ, Scientist
South Palo Alto Food Closet
St. Andrew United Methodist Church
Stevenson House
The Children’s Pre-School Center
The Elizabeth F. Gamble Garden Center
The Health Ubrary at Stanford
TheatreWorks
Trail Center
United Nations Association of the USA
Unity Palo Alto Community Church
University Lutheran Church
Urban Ministry of Palo Alto
West Bay Opera Association
Wildlife Rescue
YMCA of the Mid-Peninsula
Youth Community Service
YWCA of the Mid-Peninsula
Survey Instrument
Nonprofit Survey ¯ City of Palo Alto
This survey should take 20 minutes to complete. Please answer all the questions below
based on_your knowledge as the leader of a nonprofit organization serving the Palo Alto
community. Pl~.~_~. m~k~. infnrmP.d .iHdgm~.nt.~ wh~.n P.x~c.t infnrm~tinn i~ Hn~v~il~hl~.. If a
question is not applicable to your organization, mark it NA. Contact Megan Swezey Fogarty
at msfog@aol.com or (650) 473-0428.ext. 2 with any questions.
Information About Your Services
Organization Name"
Organization Primary Address:
Phone:FAX:
Web Site URL:
Contact Person:
Contact Person Title:
Contact Person E-Mail Address’
Which of the following best describes your organization’s status?
(Check one.)
I~(a) 501(c)3 organization
1:3 (b) Sponsored project of a 501 (c)3 organization
I~(c) Chapter or branch of a regional, state, or national 501 (c)3 organization
1"1 (d) Government agency
1"1 (e) A religious 501 (c)3 organization
1~(f) Non tax-exempt organization
I~(g) Other (explain):
Nonprofit Survey 1 City of Palo Alto
Which of the following best describe(s) the focus of your organization?
(Check all that apply and circle your orimarv focus area.)
0 (a) Arts/Culture
O (b) Child Care
O (c) Education
O (d) Adult Day Care
O (e) Employment/Training
0 (f) Environment
0 (g) Health
0 (h) Housing
0 (i) Legal Services
0 (j) I~lental Health
0"1 (k) Recreation
0 (I) Religion
i"! (m) Multi-service
0 (n) Other (specify):
What is the population(s) served by your organization?
(Check all that apply and circle the orima~ population served.)
I-I (a)
0 (b)
I"1 (c)
I-I (d)
Preschool aged children
Children in grades K-5
Youth in grades 6-1 2.
Adults
O (e) Families O (i) General population
I-I (f) Seniors O (j) Other (specify)-:
0 (g) People with disabilities
I-I (h) Low-income people
What were the total operating expenses of your organization last fiscal
year?
5. How many paid staff work at your site(s) in Palo Alto?
Number of part-time staff:Number of full-time staff:
6.On average, how many volunteers work at your site(s) in Palo Alto each
year?
7. How many unduplicated clients does your organization serve annually?
8.What percent of the total number of people served annually do you
estimate are Palo Alto residents?
Nonprofit Survey 2 City of Palo Alto
9.Given the trends in your organization’s area of focus defined in question
#2, how do you estimate the demand for your services in Palo Alto will
change over the next 10 years? (Check one.)
I-I (a) Decrease significantly (more than 50%)
[~(b) Decrease (up to 50%)
1"3 (c) Stay the same
[~(d) Increase (up to 50%)
I-I (e) IncreaSe significantly (more than 50%)
Your Current Facilities
10. Which of the following best describes your organization’s facility status in
Palo Alto? If you operate at more than one facility in Palo Alto, .please
write in the space provided the number of facilities that are described by
each of the options below.
My organization operates a facility (or facilities) at:
(a) space owned by the nonprofit organization
(b) space that is commercially leased
(c) space leased from a church or other religious entity
(d) space leased from the City of Palo Alto
(e) space leased from another government entity
(f) space provided free of charge
(g) other (explain):
1 1. In order to continue to serve your Palo Alto clients does your facility need
to be located in Palo Alto?
~ Yes
No
[~ Depends (please explain):
Nonprofit Survey City of Palo Alto
12. Please fill in this table about each facility that your organization leases in
Palo Alto. If you receive your space at no cost, please put =0" in the
monthly rent column. Do not include sites used for programmatic
arrangements with other organizations. If you have more than three sites
please attach additional sheets with the requested information. If you do
not lease or borrow space in Palo Alto, please write NA.
Address
(Example:
212 Oak St.)
Total
Square
Footage
(Example:
2,500 SqF)
Current
Monthly
Rent
(Example:
$3,000)
Lease
Expiratior
Date
(Example:
5/01)
Can you
renew your
lease?
(Example:
Yes)
Percent
increase of
most recent
rent increas,
(Example:
25%)
If you can renew,
estimate the
percent increase
in rent expected
(Example:
100~)
13. Please fill in this table about each site your organization owns in Palo
Alto. If your organization does not own property in Palo Alto write NA.
Address
(Example:
1 12 Oak St.)
Total square
footage
(Example:
3,000 square feet)
How long have you
owned it?
(Example:
5 years)
Nonprofit Survey 4 City of Palo Alto
14. If your organization has unused space that might be available for use by
other nonprofit organizations in Palo Alto, how much square footage
might be available?
square feet
15. If your organization has space that might be available for use by other
nonprofit organizations, what kinds of space might be available?
(Check all that apply.)
I-I (a) Large space for activities of clients (e.g. fitness classes, large meetings)
I-I (b) Small classroom space
i~ () Pdvate space in which to serve clients
I~ (d) Administrative or program office space
1"3 (e) Storage space
[~ (f) Athletic fields
I~ (g) No space is available
I’1 (h) Other (please specify):
Your Current and Future Space Needs
16. How much additional square footage do you estimate your organization
will need in Palo Alto in the next 10.years to meet demands for the
services you currently provide? (Check one.)
I~J (a) 50% or more space than currently used
I-I (b) 25%-49% more space than currently used
I~J (c) 0%-24% more space than currently used
I-I (d)Don’t know how much space will be needed
[~(e) Other (please describe):
Nonprofit Survey City of Palo Alto
17.If you anticipate needing additional space in Palo Alto in the next ten
years, which of the following best describes, your space needs? (Check all
that apply.)
I~](a) Large activity space (e.g. fitness classes, large meetings)
~](b) Small classroom space
I~(c) Private space in which to serve clients
[~(d) Administrative or program office space
{3 (e)Storage space
I’1 (f) Athletic fields .
13(g) No additional space is currently needed
{3 (h) Other (please describe):
1 8. Use the following scale to indicate the likelihood of the following results if
your organization cannot find affordable space in Palo Alto within the next
ten years:
(1) (2) (3)(4)(5)
Not Somewhat Neutral Likely Very
likely likely likely
(a) Curtail programs, downsize
(b) Move to another nearby community
(c) Cease doing business
(d) Will not expand to meet needs
(e) Join forces/merge with another organization
(f) Other (please specify):
Nonprofit Survey 6 City Of Palo Alto
19. Which of the following factors are currently impeding your organization’s
ability to serve the Palo Alto community? (Check all that apply.)
I~(a) Occupancy costs and availability
I~(b) Paid labor shortages
I~(c) Volunteer labor shortages
[~](d) Competition for funds
I"1 (e) Inability to provide competitive wages
I~](f) Cost of recruiting staff
I-I (g) Other (please specify):
20. Use the following scale to indicate how interested or disinterested your
organization is in the following types of cooperative arrangements with
other nonprofit organizations:
(i)(z)(3)(4)(s)
Not Somewhat Neutral Interested Very
interested interested interested
(a) Shared use of the same facility
(b) Shared staffing
(c) Shared administrative functions
(d) Shared funding and fund development
(f) Other (please specify):
21. Is there anything else you would like us to know about service or facility
trends facing your nonprofit organization? Please use the back of this
page for additional space as needed.
Thank you for your assistance. Please return in enclosed envelope to:
M. Swezey, 2421 Bryant Street, Palo Alto, CA 94:301
Nonprofit Survey City of Palo Alto
City of Palo Alto
City Manager’s Report