How do you manage contracts for your nonprofit?

1 Plan ahead

Before you sign or create any contract, you need to have a clear idea of what you want to achieve, how much it will cost, and how long it will take. You also need to identify the risks, benefits, and alternatives of each contract option. Planning ahead will help you avoid common pitfalls, such as unrealistic deadlines, vague deliverables, or hidden fees. It will also help you negotiate better terms and conditions with your contractors.

2 Use templates and tools

You don't have to reinvent the wheel every time you need a contract. You can use templates and tools that are designed for nonprofits and cover the basic elements of a contract, such as scope of work, payment terms, confidentiality, liability, and termination. You can find free or low-cost templates and tools online, or consult with a legal or financial expert who can advise you on the best practices and standards for your sector and location. Using templates and tools will save you time and money, and ensure consistency and compliance across your contracts.

3 Track and monitor

Once you have a contract in place, you need to track and monitor its progress and performance. You need to communicate regularly with your contractors, review their reports and invoices, and verify their deliverables and outcomes. You also need to document any changes, issues, or disputes that arise during the contract period, and resolve them as soon as possible. Tracking and monitoring will help you evaluate the impact and value of your contracts, and make adjustments or improvements if needed.

4 Review and renew

At the end of a contract period, you need to review and renew your contract, if applicable. You need to assess the results and feedback of your contract, and determine whether it met your goals, expectations, and standards. You also need to decide whether you want to continue, modify, or terminate your contract, based on your current and future needs and priorities. Reviewing and renewing will help you maintain good relationships with your contractors, and optimize your contract management process.

5 Train and support

Managing contracts is not a one-person job. You need to train and support your staff and volunteers who are involved in contract management, such as project managers, finance officers, or program coordinators. You need to provide them with the necessary skills, knowledge, and resources to handle contracts effectively and efficiently. You also need to create and follow policies and procedures that guide your contract management practice, such as approval processes, quality standards, or reporting requirements. Training and support will help you build a strong and competent contract management team, and foster a culture of accountability and transparency in your nonprofit.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?