PurchasingPoint Group Purchasing Volume by Members Increased Estimated 10 Percent in 2014

Katz explains why:

• Absent a GPO's buying power, nonprofits cannot go to national vendors with real critical mass in spending that attracts the kind of discounts normally reserved for Fortune 100 companies.
• Even large national nonprofits typically lack the internal resources to do direct purchasing in a cost-effective way.
• And the affiliates of national human service organizations are even less prepared to lower overhead by effectively managing their purchasing process.

"There's no doubt that managing a nonprofit is a complex and challenging process," said Katz. "The good news is ... it's easier to save money through group purchasing than it is to raise it through traditional fundraising!"