Nonprofits are critical partners for local government. They often serve as the first line of support for individuals and families in need, and they help local governments fill gaps and build trust with its most vulnerable communities. However, to be successful long-term, nonprofits need business expertise and education.
Today, we bring you our latest Member City Spotlight showcasing Beaverton, OR’s Nonprofit Incubator—the first in the nation to blend services for for-profits and nonprofits in the same space. Read on to hear from Mayor Lacey Beaty on how the incubator was established and how it provides nonprofits with the space, support, knowledge, and tools they need to grow, be sustainable, and serve their community.
Can you please describe the Nonprofit Incubator and how it operates?
The Nonprofit Incubator (NPI) is a new initiative by the City of Beaverton designed to support local nonprofits through technical assistance, programming, and ecosystem development. The NPI helps mission-driven organizations build sustainable business models, operating plans, and fundraising strategies. While it doesn’t provide direct funding, it equips nonprofits with the tools and mentorship needed to pursue a variety of funding options.
To maximize impact and avoid duplicating efforts, the City partnered with the Oregon Startup Center (OSC)—a local nonprofit already running a successful for-profit business incubator—to house and manage the NPI. By aligning these efforts under one roof, we’re ensuring that nonprofit founders benefit from the same entrepreneurial expertise, mentoring, and collaborative environment traditionally reserved for startups.
Combining both profit and nonprofit programs that work collaboratively to support each other is certainly unique, but it is a model we believe will be of real benefit to both sectors.
As Mayor, what have been the main barriers to getting the Incubator started?
First, securing flexible funding was a major challenge. Federal earmarks often support either capital or operating expenses—but not both. We needed to make the case for a blended model that could support everything from physical improvements to day-to-day program operations.
Second, we had to define and design the right structure. We wanted the NPI to be a space where nonprofit founders could grow their organizations in service to the Beaverton community and beyond—while also building long-term financial sustainability. That meant designing both a program and a physical space that were tailored to the way people work now: flexible, collaborative, and cost-effective.
How have you (or are you attempting to) overcome these barriers?
We worked closely with our funders to emphasize the value of integrated support—capital and operational—and made the case for why nonprofits, like startups, need both the space and the scaffolding to grow.
We also embraced a new model for programming that brings together nonprofit and private-sector thinking. By housing the NPI within OSC, we’re helping nonprofit leaders adopt proven business strategies: setting measurable goals, developing growth plans, and building diverse revenue pipelines. This also opens doors to partnerships and funding sources beyond traditional grants.
In parallel, we conducted research in partnership with Portland State University and tested early programming such as networking events and community-building activities. These insights helped us shape a post-pandemic space that includes shared workspaces, hot desks, conference rooms, and meeting areas—resources that founders often lack but deeply need.
What key successes or breakthroughs would you like to share?
We recently hired Jim Chi as the new director of the Oregon Startup Center. Jim brings a rare combination of experience across both nonprofit and for-profit sectors and is already building bridges between the two.
Construction of the new incubator space—located within Beaverton City Hall—is now complete. An office suite that previously had enclosed individual offices has been transformed into a modern, open, and flexible environment that fosters innovation and collaboration. We’re proud that this space now reflects the entrepreneurial energy we’re trying to cultivate in our nonprofit community.
What learning lessons would you offer to other mayors on successful and effective leadership to support nonprofits in their community?
Nonprofits are under increasing pressure to deliver more with fewer resources. As mayors, we can support them by rethinking how cities partner with and invest in these essential community organizations. One key lesson is to look beyond traditional silos. Nonprofits can learn a lot from for-profits—about strategy, sustainability, and scale—and cities can play a key role in facilitating that cross-sector exchange.
In Beaverton, we’ve found success by leveraging an existing business incubator to support nonprofit innovation. This kind of collaboration can maximize resources, reduce duplication, and foster a culture of experimentation and growth.
Learn more about Beaverton’s nonprofit incubator here.