This document discusses how nonprofits can improve their bottom line without increasing fundraising or membership. It suggests focusing on reducing non-personnel expenses by competitively bidding suppliers and services. Using benchmark data and a purchasing consultant can help organizations achieve savings of 20-30% on expenses like insurance, office supplies, and telecommunications. Examples are given of nonprofits that saved 25-49% in various expense categories through competitive bidding, freeing up over $23,000 and $144,000 annually.

1. Improve Your Bottom Line WITHOUT Fundraising or Membership Growth Bill Thimme [email_address] 513-255-4339 .

2. Challenges for Today’s Nonprofits Increasingly difficult fundraising and operational challenges in the current economy. Vying for the same membership, non-dues revenue and donation dollars Philanthropic Political Environmental Professional

3. Look to the Bottom Line Is there an alternative to focusing on the top line? Yes - focus on the bottom line! How do you reduce non-personnel expenses without reducing what or how much you buy?

4. Here’s How: Take a fresh look at: What products and services you buy. Who you buy from. How and when you last competitively bid. Staff expertise in particular cost category.

5. How Do You Buy? Have you been using the same supplier for many years? Has your staff gotten too comfortable with the relationship to really push them on price? We routinely see incumbents drop their price 20% to 30% when put through a truly competitive process. Have you asked your supplier for things you can do that would help lower your costs.

6. Do You Have Benchmark Data? Do you have access to current benchmark data on what industry pricing is for a buyer of your size? Does your staff have the time to undertake a competitive procurement in a timely fashion or are they too busy dealing with day-to-day issues?

7. Should You Use a Purchasing Consultant? Consultants have proprietary Benchmark Data (price and service) across a wide range of categories. They know the types of deals/incentives currently being offered in a given market . Knowledge is power – using a consultant puts a category specialist on your side of the table. They know the industry tricks in the bidding process and thereafter. They know how to structure a deal to your best advantage. They do the work – YOU make the decisions! Assisting with implementing and monitoring a new supply agreement should be a key consultant role.

8. What You Can Expect The result should be: Faster completion Greater savings A market competitive outcome taking into account quality, service and price

9. Insurance Merchant Card Processing Office Equipment Leasing Office Consumables Payroll Processing Services Printing Air/Ground Couriers Records Management Telecommunications Temporary Labor Selected Cost Categories – Average Savings Achieved 20% plus

10. Organization National Association of School Psychologists, Washington, D.C. Category Merchant card fees Savings 25.2% Extra Funds $23,200 annually 13% 25.2% Nonprofit/Association Results 34%

11. 35% Organization Midwestern provider of education, training and career services for the disadvantaged Category and Savings Fleet Management 15% Waste Management 16% Merchant Card Fees 25% Advertising 49% Air/Ground Courier 9% Telecommunications 20% Extra Funds $144,000 annually Nonprofit/Association Results

12. 12.5% 23 % Organization Homeward Bound of Marin (CA) – Provider of transitional and long-term housing and support services for the homeless. Category Food Services Savings 12.5% Extra Funds $25,325 annually Nonprofit/Association Results

13. Thank You For The Opportunity!