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A Look Into Cooperative Purchasing For Nonprofit Organizations

In 2015, there were over 1.56 million nonprofit organizations registered with the IRS and that number was a 10.4% increase from 2005. So, you can bet the amount of US-based nonprofits is even higher today.

If you’re in charge of a nonprofit, then you know how hard it is to run the business with the finite resources you have at your disposal. So, let’s take a look at how cooperative purchasing may make all the difference for your organization’s bank account.

What Is Nonprofit Cooperative Purchasing?

Cooperative purchasing is where a third-party agency contracts with a variety of businesses to streamline the procurement process. This partnership allows your nonprofit organization to share procurement contracts with others, meaning you won’t have to deal with extra administrative burdens and have access to better pricing (due to the groups purchasing power).

This is because the buying cooperative has already done the market research and can assist greatly with the bid process and vetting proposals. The result is a streamlined bid process that significant;y reduces timelines and gives greater access to competitive pricing and quality service. 

Who Can Use Cooperative Purchasing for Roofing?

Not every organization can qualify for cooperative purchasing. The main industries that can use this service are state government entities, local government entities, public education, private education, nonprofit organizations (tax-exempt) and some private sector businesses (like manufacturing and enterprise corporations)

If your organization falls into any of these categories, then you likely qualify for cooperative purchasing.

Benefits of Using Cooperative Purchasing

We’ve already covered the fact that cooperative purchasing allows you to reduce a lot of busywork that comes from the administrative side. But what else can you get from this type of contract solution?

Below are some other benefits your organization can get from partnering with a cooperative purchasing organization.

Avoid Paying for a Request for Proposal (RFP)

When you use cooperative purchasing, you’ll avoid lots of administrative work, and the bulk of that work stems from the request for proposal (RFP) process. RFPs are not only time-consuming, but they are also costly.

Nonprofit RFPs – no matter the cost – are an expense that you don’t want, especially when the bottom line is tight to begin with. Plus, when you add actual costs to the time you invested in the process, the final amount is only compounded.

When you don’t have to go through an RFP, it can be a relief for your organization, especially if you have very limited resources.

You Have a Wider Range of Options

Normally, when you’re in need of something (like commercial roof repair), you’d have to seek out contractors on your own and determine which ones suit you best. But, by working with a cooperative purchasing organization instead, you’ll be leveraging their reach for your own benefit.

Those organizations have already vetted contractors and providers in order to give members a wide variety of options to choose from. This pool of qualified resources is likely significantly larger than the one you would have put together on your own, making it more likely for you to select someone who’s right for the job.

You’ll Get High-Quality Work

Again, all providers within the cooperative have already been vetted by the agency, so you won’t have to worry about low-bid, low-quality work.

The contractors available to you through a buying cooperative come with a stamp of approval, giving you peace of mind that not only are you getting quality craftsmanship, but you’re also making every dollar count.

Enjoy Great Savings

As a nonprofit organization, you already have access to nonprofit discounts in other areas to help stretch your budget. With cooperative purchasing, you’ll enjoy further savings with volume discount pricing.

Cooperative Purchasing Organizations to Consider

Now that you understand the power of cooperative purchasing, perhaps you want to know a little bit more. 

Here’s some additional information about two cooperative purchasing organizations that TEMA Roofing Services works with on a regular basis: TIPS USA and OMNIA Partners.

TIPS USA

The Interlocal Purchasing System, otherwise known as TIPS, was first started in 2002 and focuses on helping schools, universities, nonprofits, and government entities gain access to the resources they need.

TIPS membership is free and currently serves a variety of entities (including but not limited to the following):

 

  • K-12 school districts
  • Charter schools
  • Colleges and universities (state and private)
  • Cities/Municipalities
  • Counties/Parishes
  • State agencies
  • Emergency services districts
  • Nonprofit organizations
  • Other entities with legislated purchasing/bidding requirements

TIPS contracts are awarded to vendors through a time-tested process: TIPS posts an RFP/RFQ on your organization’s behalf, TIPS advertises the posting, TIPS collects all incoming proposals and scores and reviews all options, and then recommends high-scoring vendors to the board for final review.

If you’re happy with the quote, then you simply submit the quote and PO to TIPS and get the job rolling.

OMNIA Partners

As far as public and private sector procurement go, OMNIA Partners is the largest agency for it in the whole country. They were established over 20 years ago and have over a century’s worth of combined experience in both public procurement and cooperative purchasing.

To find a contract, you use the search function as you’d do on the TIPS site. You can search by category, keyword, supplier name or contract number. If you find a contractor you’re interested in, you click on their webpage to find additional details, such as their contract number and length of membership.

Group purchasing organizations (GPOs) are effective because they leverage the purchasing power of their members to drive down costs in the supply chain, and being that OMNIA is one of the largest in the nation, your nonprofit organization’s access to vendors and market share is essentially endless.

Get Commercial Roofing for Your Nonprofit Through Cooperative Purchasing

As you can see, cooperative purchasing is full of benefits for your nonprofit organization. Not only do you save on a huge amount of effort, but you’ll also get services at costs you would otherwise not see.

When you’re working with a limited budget as a nonprofit, every dollar counts. Make them worth it by going considering membership with a trusted cooperative purchasing organization. At TEMA Roofing Services, we are proud to be the only commercial roofing company in the Youngstown, OH area to deliver services to both TIPS and OMNIA Partners.

Need a commercial roofing contractor you can trust? Get in touch with us today. We’ll ensure you get high-quality commercial roofing services at affordable prices.

TEMA Roofing Services Cooperative Purchasing