ABSTRACT Research on NATO burden sharing comprises dozens of works. Since the end of the cold war, NATO adapted, enlarged, and institutionally complexified its mandates and area of operations. Yet, burden sharing research rarely accounts for such aspects given the political and scholarly focus on NATO’s target of 2% of GDP on military spending since the 2000s. This research merges rational institutionalism with collective action models on club goods production to study NATO Centres of Excellence. These 30 institutions are externally funded, independently run, and address the collective strategic problems associated with Alliance Transformation using informal arrangements, the Memorandum of Understanding. The contents of those agreements are compared using rational institutional design theory. This article offers original data reconceptualising the NATO burdens partners undertake beyond military expenditures using COE participation and hosting while offering a framework for a future examination of how the COE institutional agreements manage strategic problems (i.e. enforcement, allocation, uncertainty, etc.) with expanded data.