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Cost RecoveryIndirect spend across ~50 categories, tested against the market Revenue ConversionWhere the pipeline leaks before it closes Technology & OperationsWhat you own, what you use, what you pay for anyway
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Nonprofit▸
Hospitals & health systems Human services Senior living & post-acute Community health & outpatient Behavioral health Community & economic development
Manufacturing Healthcare Education Retail & wholesale
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INDUSTRIES · COMMUNITY & ECONOMIC DEVELOPMENT
Buildings, vehicles and utilities.
The cost base of an organization that owns things.
We analyzed the reported spending of 974 community action agencies, workforce boards, housing organizations and food banks. The operating models differ, but they share one important characteristic: a meaningful portion of the cost base sits in physical assets.
974
organizations analyzed
$3.6B
spend in scope
51%
report utilities above median
52%
report property tax above median
THE PATTERN
The categories that vary most here
are the ones tied to property.
Property tax and utilities show some of the widest variation in this group. Both can look fixed because the bill arrives on a regular cycle, but the reasons behind the number may be very different from one organization to another.
Some variation is geography, building stock and service footprint. Some may reflect exemption status, assessment treatment, meter structure or energy supply arrangements that have not been revisited as the portfolio changed. None of that proves overspending. It identifies where the context is worth understanding.

Banking fees are the quiet one. More than four in ten organizations report banking and merchant charges above the peer median. Finance may own the banking relationship, development may own the donation platform, and programs may own client-facing payment activity. Each arrangement can be reasonable on its own while no one has a consolidated view of the total economics.

CATEGORYSHARE WITH FILED SPEND ABOVE 1.5× PEER MEDIAN
Property & sales tax52%
Utilities & energy51%
Travel & mileage47%
Marketing & outreach43%
Food services43%
Banking & merchant fees42%
Professional services39%
Maintenance & plant38%
Method note. Share of organizations whose reported spend exceeds 1.5× the peer median. Peer groups of 50 or more, same reporting period. Above median is not overspending — it is a reason to ask why.
What makes this sector structurally different
The organization owns physical assets
Housing units, community centers, warehouses, workshops and depots create property, insurance, energy, maintenance and waste costs that service-only organizations may barely carry.
Fleets run daily and at scale
Food distribution, client transport, weatherization crews and outreach teams put vehicles on the road every day. Fuel, maintenance, financing and insurance are often managed separately.
Funding is layered and time-bound
Federal, state, county and philanthropic sources can each carry their own rules and periods. A single facility may be supported by several with different allowability conditions.
Capacity is the binding constraint
These organizations are often operating near the edge of what staffing allows. Any review has to reduce work for finance and operations rather than create another initiative.
Where a conversation usually starts
Energy and utilities
Where supply is competitive, the commodity portion may be a contract rather than simply a fixed bill. Multi-site portfolios can accumulate inconsistent meter, rate and supplier arrangements.
Fleet and fuel
Acquisition, financing, fuel cards, maintenance and vehicle insurance — five arrangements often managed separately though they belong to one operating category.
Facilities and waste
Cleaning, waste, grounds, security and pest control often grow building by building as the portfolio expands.
WHERE WE WOULD NOT START
Anything grant-restricted where the funder specifies the arrangement, and anything that would reduce service capacity. Property tax is worth understanding, but it is usually a specialist validation question rather than a conventional procurement exercise.
WHAT THE WIDER RESEARCH REPORTS
Published benchmarking for this group is limited.
Published benchmarking for this group is limited. What exists describes federal grant treatment and indirect spend generally.
The de minimis indirect cost rate allowed on federal grants was raised from 10% to 15% in the 2024 uniform guidance revision.
US Office of Management and Budget
Indirect categories are commonly estimated at 20% to 40% of total organizational spend.
McKinsey & Company
Categories commonly benchmarked include facilities, utilities, waste and water, travel and MRO.
Computer Economics / Avasant, 2025

These figures describe ranges observed across an industry, drawn from samples that may or may not resemble your organization. We publish the source and the sample size for each one because a range is useful for orientation even when it cannot be a conclusion. None of them describe you. The analysis above comes from the reported figures of 974 organizations in this group.

CONTINUE
See how cost recovery works
The four stages, the categories, and the fee model.
Read →
Other sectors
How the pattern differs elsewhere, and why.
Read →
The research behind this
What we publish, and what we are building next.
Read →
A 45-minute working session.
Your numbers. Your operating model. No assumptions.
We will talk through energy, fleet and facilities across your portfolio, and separate what is a procurement question from what is a valuation or exemption one.
No fee for the conversation, and no cost unless verified value is recovered.
Start a conversationSee how cost recovery works
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