9. Contract to Provide a Service

  1. Charles K. Coe

Published Online: 9 MAR 2012

DOI: 10.1002/9781118386064.ch9

Nonprofit Financial Management: A Practical Guide

Nonprofit Financial Management: A Practical Guide

How to Cite

Coe, C. K. (2011) Contract to Provide a Service, in Nonprofit Financial Management: A Practical Guide, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118386064.ch9

Publication History

  1. Published Online: 9 MAR 2012
  2. Published Print: 13 JUN 2011

ISBN Information

Print ISBN: 9781118011324

Online ISBN: 9781118386064

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Keywords:

  • contract;
  • nonprofits;
  • request for proposals (RFP)

Summary

Nonprofits contract with governments, foundations, firms, individuals, and other nonprofits to provide a wide range of services. The granting agency contracts with the nonprofit to provide the service. Contracting is a three-step process that is described in this chapter: issue a request for proposals (RFP) or bids request; award the contract; and administer the contract. There are three contracting models. In the competition model, the contractor takes several bids or proposals and selects the lowest. In the negotiation model, the contractor contacts only a few nonprofits and does not specify the SOW in detail. In the third model, the cooperation model, the contractor contacts only one nonprofit, with which it enters into long-term contract awarded noncompetitively.

Controlled Vocabulary Terms

Contracts; Nonprofit organization; Request for proposal