Advertising cookies may be set through our site by our advertising partners and help us to deliver personalized marketing content. If you do not allow these cookies, you will experience less relevant advertising.
In the realm of nonprofit organisations, procurement has traditionally been viewed through the lens of cost efficiency. However, an emerging paradigm shift towards mission-driven purchasing is redefining the role of procurement leaders in the sector. This approach recognises procurement as a strategic function that can play a pivotal role in advancing the organisation's mission.
Mission-driven purchasing is about aligning procurement decisions with the organisation's core values and mission. It is about going beyond cost considerations, considering the social, environmental, and economic impacts of procurement decisions. For example, a nonprofit organisation committed to environmental sustainability might prioritise purchasing from suppliers with strong environmental credentials.
The benefits of this approach are multi-fold. It strengthens the organisation's reputation, enhances stakeholder engagement, and creates a positive impact on the community the nonprofit serves. Furthermore, it enables nonprofits to use their purchasing power to foster positive change, whether that's supporting local businesses, promoting fair trade, or reducing environmental footprint.
Benefits to nonprofit organisations engaging in mission-driven procurement include:
“Nonprofits can force-multiply a one-time investment by ensuring there is a strategic procurement plan surfacing suppliers that align with the mission, such as locally owned business for a community food bank.”
— Sean Ullman | Senior Account Executive, Nonprofit, Amazon Business
To succeed in this new role, a holistic understanding of the organisation's mission and the broader social and environmental context it operates within is crucial. You'll need to build strong relationships with suppliers who share your organisation's values, and develop procurement policies that reflect these values. And, most importantly, you'll need to champion this approach within your organisation, advocating for its adoption across all levels.
Procurement leaders looking to drive these types of changes in their organisation should engage in the following tactics:
Mission-driven purchasing is not just a trend, but a strategic imperative for nonprofit procurement leaders. By embracing this approach, you can position procurement as a powerful tool to advance your organisation's mission, create positive social impact, and drive meaningful change. Be the change agent your organisation needs – lead the shift towards mission-driven purchasing.
To make the most impact, it's crucial for leaders to connect with their suppliers early in the year. By doing so, you can collaboratively game plan and strategise for the rest of the year, ensuring alignment and maximising the positive outcomes of your mission-driven procurement efforts.