Contracting Out: The Pros and Cons of Nonprofit Outsourcing
with Salvatore Alaimo
August 17 | 10:00-11:00 AM CT
Nonprofit organizations in the U.S. each year aggregately contract out (outsource) for services for more than an estimated $300billion. They outsource for various reasons but, often in the case of most nonprofits, it is due to capacity issues and the inability or undesirability of providing those services from within their organization.
These decisions may be driven by a single factor or any combination of multiple factors including pricing, required capital for infrastructure, issues concerning core functions, industry standards, government regulation, the organization’s boundaries, economies of scale, specialization, timing, flexibility, cost reduction and flexible external control.
Nonprofits may outsource some of its operations to a company, hire a direct provider of services, or contract with consultants who may assist with planning, evaluation, fundraising or other management functions.
Contract management is more than just a function or responsibility, it’s a profession all to its own with The National Contract Management Association’s (NCMA) 20,000 members, a code of ethics, competencies, and a certification program.
Maximizing the efficiency and effectiveness of these contracted relationships requires nonprofit leaders and managers to address the costs, benefits, risks, and ethical considerations of nonprofit outsourcing.
This session will cover those concerns and:
- The dynamics and dimensions of contracted relationships and nonprofit outsourcing
- Recommended practice in contract management
- Required competencies
- How outsourcing can contribute to work towards your mission
About the Presenter
Salvatore Alaimo is an Associate Professor in the School of Public, Nonprofit and Health Administration at Grand Valley State University, in Grand Rapids, Michigan, where he has taught graduate and undergraduate courses in philanthropy and nonprofit administration for thirteen years. Professor Alaimo has experience managing contracts in his various roles as a nonprofit manager, board member and consultant. He published a book chapter, “Contracting Out,” about nonprofits outsourcing services.
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