NOT FOR PROFIT ORGANISATIONS

Transparent expenditure and funds well spent

Non-profit organisations’ reliance on public funding and charitable donations places them under scrutiny from a variety of stakeholders. To instil stakeholders with confidence, they need to know how and where funds are spent. Confirmation that value for money has been achieved is also essential.

Non-profit organisations are responsible for their own financial management and compliance, including the deals and contracts they have with various suppliers. This autonomy offers them some flexibility when deciding how to allocate funds. However, it also requires a detailed understanding of where funds are spent and how to maximise their effectiveness. Insight into existing procurement procedures and transparent expenditure is the first step towards ensuring that funds are spent in the best possible way.

WHY IS PROCUREMENT IMPORTANT?

Poor procurement decisions can be costly and time-consuming, resulting in the reduced effectiveness of funds. As non-profit organisations are expected to operate transparently, it is of further importance to ensure that there is no conflict-of-interest when choosing a supplier (i.e. transacting business with companies that have close ties to key stakeholders). If any of these issues arise, it can negatively impact on the organisation’s reputation and lead to a loss of confidence amongst key stakeholders.

Non-profit organisations are also particularly vulnerable to budget constraints and cuts, as well as the current economic climate. The unpredictable nature of their external environment makes financial planning difficult. The ability to deliver on long-term projects is less certain than with organisations not as reliant on funding from external sources.

While control over the external environment is often significantly limited (if possible at all), non-profit organisations can focus on protecting and improving their financial health with a sustainable and agile approach to procurement. Effective procurement also means a clearer understanding of how and where funds are spent, quickly identifying eroding costs and improving an organisation’s operational efficiency.

HOW WE CAN HELP

Pinnacle Procurement works with non-profit organisations to identify areas of significant cost savings and implement a sustainable procurement strategy.
We understand that it is not always feasible for non-profit organisations to employ full-time procurement specialists to continuously monitor the purchase of goods and services across all departments. Current employees may not have the time or expertise to incorporate procurement-related tasks into their existing workload.

By engaging with Pinnacle Procurement, we can support your existing operational teams and provide specialist procurement insight to ensure that funds are well spent both in the short-term and over a long-term period. In addition to tangible cost savings, also look into other essential aspects of supplier relations, including a supplier’s reputation.