Creating Green Buildings: A Guide to Energy Assessments for Nonprofit Organizations November 25, 2024

In a Nutshell

IFF has helped more than 1,200 nonprofits create mission-driven facilities optimized for their needs, and we regularly share learnings we’ve accrued along the way. To access past content designed to provide nonprofit leaders with foundational knowledge needed to successfully complete facility projects, click here.

Climate change disproportionately impacts under-resourced communities, leaving residents and local stakeholders to shoulder the burden of extreme weather, poor air quality, flooding, and other negative effects. Nonprofits, which often serve such communities, have an opportunity to help mitigate these harmful effects by investing in sustainable projects for their facilities. 

Previously, we shared eight ways nonprofits can contribute to a greener future through their facility projects, highlighting some ways that organizations can reduce their carbon footprint and monthly utility bills by replacing energy inefficient windows, doors, and roofs, and installing smart thermostats, low-flow plumbing fixtures, and other environmentally friendly building features. Each facility is unique, however, as is how they’re used, and it may not always be apparent what building upgrades are needed, or possible, to boost energy efficiency. For that reason, a formal energy assessment can be a useful step for organizations interested in pursuing such projects.

Our guide below provides a high-level overview of how an energy assessment is conducted, how organizations can prepare for one, and the types of questions that will be considered during the process.

What is an Energy Assessment?

An energy assessment examines a facility’s energy usage and cost-effectiveness, identifying opportunities to increase energy efficiency and save money on utility bills while contributing to a more sustainable future. To accomplish this, a qualified professional conducts a walk-through of a building and/or grounds to determine the physical condition of the property and identify existing or potential issues that impact energy usage. Examining the building envelope, including the exterior walls, roof, windows, and doors, along with interior elements, appliances, heating and cooling systems, light fixtures, and more, the walk-through helps to pinpoint specific repairs or replacements that can meaningfully improve energy efficiency. 

Coupled with an analysis of utility bills and external factors like local weather and seasonal patterns, the walk-through provides the expert conducting the energy assessment with the information needed to recommend upgrades – with cost estimates – that can result in a more environmentally friendly facility that costs less to operate.  

While conducting one of these assessments may seem overwhelming, not all findings of an energy assessment have to be addressed immediately. Completing small projects over time can still produce meaningful benefits that help to drive down energy usage and costs long-term.  

Preparing for a Walk-Through

Before the walk through, gather at least 24 months of utility bills and any findings from past assessments. Then, enlist the help of a building or facilities manager who is familiar with the building and its history and have them join a walk-through of the facility and its grounds alongside organizational decision-makers and an external expert like those on IFF’s Real Estate Solutions team. Be prepared to discuss how the facility is currently used, how the organization wants to grow its programs, and how that will influence the organization’s space needs. 

What to Expect During the Walk-Through

An energy assessment will consider a variety of factors that impact energy efficiency, and the external expert engaged to conduct the assessment will seek to answer a variety of questions as part of their analysis. Below are examples of the types of questions likely to be considered, though it’s important to note that additional information may be required based on the unique attributes of the facility and how it’s used by the organization.

Attributes
  • How many square feet is the building? 
  • How many stories does the building have?  
  • What is the local climate like throughout the year, and how does that affect heating and cooling needs? 
  • How old is the building? 
Envelope (i.e., the physical features that separate the inside of a building from the outside)
  • Is there an attic in the facility, and is it insulated/climate controlled?  
  • How old is the roof? 
  • What type of insulation and air sealing does the building have? 
  • How many windows does the building have, and how are they covered (i.e., does a row of windows that gets full sun during the day have shades so that the sun is not overheating the interior?)? 
  • In what condition is the building’s foundation? 
Equipment
  • What HVAC systems does the building have, and how old are they? 
  • Does the building have a hot water heater, and how old is it? 
  • Are there air ducts in the facility, and what type of insulation do they have? 
Electric Load
  • What type of lighting fixtures and bulbs are used in the facility? 
  • What types of appliances are installed in the building, and how old are they? 
  • Is the building a good candidate for a roof-mounted solar array that can provide power to the facility? 
Building Occupants
  • How are employees and clients using the space?  
    • Are there days when employees work from home and the building is vacant?  
    • Does programming occur at a time of day when more electricity is required?  
    • Do many employees or clients need to access the space by vehicle, necessitating an adjacent asphalt parking lot?  

Next Steps

After completing the walk-through of the property and analyzing utility bills, the facilities expert engaged by the organization can provide guidance about what upgrades to focus on in the short- and long-term. Ideally, these recommendations will categorize potential upgrades into three groups to help the organization understand the sense of urgency to apply to a given project. Organizational leadership knows its mission best and can then determine the most efficient way to devote funds to improvements while continuing to lean into the organization’s day-to-day work.  

Priority 1

Immediate – includes items that impact life safety, impair core proposed functions, or are causing damage to the facility.

Priority 2

Eventual – includes items or building systems that are near the end of their service life and will need to be replaced soon. Repair or replacement of items in this category are not critical at this time but will need to be addressed in two to five years, or longer. This category can also include items that are not an immediate hazard, as well as considerations for scheduled maintenance and repairs.

Energy Efficiency

Items that may impact building energy efficiency, system operation, and building comfort that don’t fit into the two priority levels above but can help reduce operating costs in the future.  

The facilities expert also may recommend enlisting the help of additional experts (e.g., electricians that can consult on what kind of lightbulbs to use, structural engineers that can consult on whether a building’s roof can accommodate solar panels, etc.). These specialized experts can help inform specific plans for upgrades and advance the recommendations outlined following the energy assessment. 

Learn More

Energy assessments can provide immediate and long-term benefits to nonprofits by identifying opportunities for cost savings, reducing the environmental impact of an organization’s facility, and remediating energy inefficient components that perpetuate systemic inequities in communities most likely to be negatively impacted by climate change.  

To learn more about energy assessments and how IFF’s Real Estate Solutions team may be able to support your nonprofit, get in touch with one of our local teams.

To learn more about IFF’s loans and real estate consulting services for nonprofits’ sustainability initiatives, visit our website.