When international development organization, Plan Canada, recently decided to change their name, they also underwent a number of other self-assessments and transitions. But it wasn’t necessarily a dissatisfaction with the status quo that spurned on these evaluations. Simply put: they wanted to be sure they were meeting their mission objectives in the most qualitative and efficient way possible. Toward that end, they sent out a slew of RFPs, with the hope of establishing – or maintaining – the optimum vendor relationships suited to their unique needs.
Not unlike many other nonprofits, Plan Canada recognized the importance that vendors play in an organization’s ability to move forward with confidence and success. Whether coordinating an event, directing a campaign, producing a print ad or designing a website, vendors can have immense and far-reaching impact. Taking a good, hard look at the individuals or companies with whom one contracts is, therefore, probably a good plan, keeping in mind such varied criteria as costs, values, quality, timeliness, long-term prospects, and other added benefits.
What suits you?
For Becky Crampton, marketing director at Plan Canada, finding the right fit was paramount. “It’s our responsibility to make sure we’re working with the partner that can best represent us and get us the best results,” she says. “After the RFPs we were able to say, ‘okay, we’re confident now that we’re working with the right partners’ – for the foreseeable future anyway.”
Ashley Grant, manager of fundraising and corporate relations at MukiBaum Treatment Centres, concurs. Part of Grant’s responsibilities include searching for venues and suppliers for various charitable fundraisers. Sales managers, event coordinators, caterers and exhibitors are just some of the many vendors she and her department contract with on a regular basis. After preliminary research is complete, Grant visits the top venue choices and meets with coordinators to get a feel for what they can offer. “It’s very important for us that the venue coordinator has vision and shares similar values so that they can meet the individual needs of our organization,” she offers. “It is also important that they are able to accommodate the special requests that may arise, whether it be through the event committee or donors.”
Finding the shoe that fits
Sometimes the right fit means finding a vendor that is appropriate to one’s size, says Blair Witzel, senior consultant at MD+A Consultants, a technology firm specializing in the nonprofit and public sector. A lot of clients like to go with big vendors, he says. “And for a large vendor you really want to appear on their radar – you want to be one of the key sources of revenue for the company.” But since many nonprofit budgets and projects are on the smaller scale, nonprofit clients often find themselves lower down on the company’s list of priorities and lacking the attention they need when issues arise. Choosing a smaller or mid-sized vendor may be a better bet in those circumstances.
And, just as finding a vendor that suits your size is important, finding one that suits your budget is essential too. But nonprofits beware: it’s not all about finding the cheapest deals. It may, however, involve compromising or diversifying one’s vendor base. Crampton, for example, works with two agencies for Plan Canada’s direct mail and print initiatives. “We cherry pick,” she explains. One company is pricey and has more experience in branding, the other is more modestly priced and has more experience with direct mail for nonprofits. Both, though, are necessary to the bottom line. “Where something is related to our brand repositioning and we need a creative team who specializes in branding, we go with the first; but if less brand direction is needed we go with the second.” In the end, money is expended only where it’s needed.
Deal or no deal
Talking about money, every nonprofit should understand the benefits of effective negotiation and getting the best vendor bang for your charitable buck. Asking for nonprofit rates is one way of getting the best deal. Others include: listing the vendor as a corporate partner in return for a donation; agreeing to a set amount of business and negotiating a volume discount; or even getting the vendor to provide some work on a pro bono basis. In fact, relates Crampton, Plan Canada once engaged with an agency to work pro bono on a project with the assurance that, should the relationship turn out positive, a longer term relationship would develop. Sure enough, the agency is now an official vendor, working on retainer with the organization.
While negotiating reasonable pricing strategies is a definite must, working with vendors who understand the unique needs of a nonprofit organization and its values doesn’t hurt either. Take the Heart and Stroke Foundation. After the nonprofit sent out an RFP in their search for an agency to represent their Community Brands team, a short list was then invited to give presentations and provide fee structures. In evaluating the list, certain criteria were placed front and centre, including the prospect’s appreciation for the nonprofit mindset and challenges. “Publicis was eventually awarded the business based on their experience as well as the way that they proposed the costing for our work,” explains Jennifer Fry, senior marketing manager. “It’s important to work with partners who share your sense of responsibility to donor dollars,” she adds.
Long-term vision
Partners seem to be the key word here. “We want to make sure that our agencies are partners in fundraising with us,” echoes Crampton. Toward that end, establishing long-term relationships with a shared vision and working toward a common goal is essential. “That’s always better than doing one-off projects because this way they get to know your business and your cause and their initiatives are more effective as a result.”
Yet, forging positive long-term partnerships takes hard work and certain criteria are necessary on mutual fronts in order to move them forward. “Trust is important, like with any good relationship,” says Fry. “When you work with someone you like and trust, things just happen faster.” Communication is key as well. “Being upfront and being willing to voice your concerns is so important from the vendor’s perspective,” states Witzel. “If a client is reticent about talking to you about their concerns, you won’t know about them.” And in the spirit of proactive, effective communication, and with the knowledge that things can sometimes go awry, Fry suggests having the ‘what if’ conversation during initial negotiations. “And get it in writing,” she advises.
Buyer beware
Other factors that can undermine a good relationship include not appointing a key contact with whom the vendor can communicate when issues arise – as they tend to. Or completely disengaging from a project after a vendor is selected, even though the organization’s involvement is continuously necessary. “Nonprofits also need a very clear understanding of how that project fits in with their organizational strategy so they are able to make informed decisions as they go along,” Witzel adds. This clarity will help avoid unnecessary frustration, inevitable delays, indecisiveness, and revisions that will translate into higher costs in the long run.
Added benefits
With those elements in check and a commitment to communication and trust, nonprofits can create strong, mutually beneficial partnerships with far-reaching effects. For, once a great working relationship is built, doors being to open in various directions, Grant says. As an example, she cites a certain vendor MukiBaum has been engaged with for more than 11 years. “It’s no problem for me to pick up the phone and ask them to donate to a certain event we’re hosting or to introduce us to a new contact of theirs who may be interested in supporting our cause.” Of course, it works both ways,” she adds, “we have no problem sending a referral or new business their way.”
Fry agrees. Turning to their vendors for event donations is common practice for Heart and Stroke. Similarly, when media or PR opportunities arise, their partners are always the first to be called. But the bottom line, says Crampton, must always remain mission success. “Hopefully the longer you work together, the better vendors can represent your cause, whether that means helping raise more funds, sponsor more children, or whatever your goal may be.”
Five questions to ask when searching for a new vendor
- Does the vendor share our vision and values? Do they appreciate the nonprofit mindset?
- Is the vendor the right size for our needs, or will we get lost in the shuffle among bigger clients?
- Can they deliver the product or service within our budget? (hint: ask for NPO rates)
- Is the vendor easy to communicate with? Is there trust between us?
- Is the vendor willing to put everything in writing?
Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is also president of ellecommunications.ca and can be reached at: info@ellecommunications.ca.
