Operating a non-profit organization requires a substantial amount of effort. Although laws and clauses generally favor nonprofits, they are generally scrutinized in comparison to commercial organizations. Contract management is one area that nonprofits can emphasize to improve business operations. Based on our experience working with nonprofits, we would like to inform you of 4 phases of non-profit contract management and how you can master these phases.
Contract management is a critical process both for for-profit and nonprofit organizations. However, it is necessary to pay close attention to your contract management strategy as a nonprofit, as the laws, available resources, demands, and other priorities are completely different than their for-profit counterparts.
Let’s now discuss the different contract management phases.
When it comes to contract management, the success of the entire process depends upon how the process itself begins. The contract request stage critical to properly setting up the right basement for every contract. The cost for contract generation increased in the last decade compared to the time before. To manage this rise in expenditure, non-profits should find smart contract management solutions.
Dock 365’s Contract Management Software comes with a built-in contract request feature that allows users to request new contracts according to demand. This works as an automated process, and you can configure custom templates and workflows for your contract management system to make the contract request and approval process easier and more efficient.
The pre-contract stage consists of processes such as listing requirements, risk analysis, developing offers, etc. Each party will have a different process to run based on the nature of their requirement. If the contract is between a buyer and a seller, the buyer needs to list their requirements in detail, along with processing market research and risk analysis. On the other hand, the seller needs to respond with an appropriate response that shows they understand the demands of the buyer and assure great value for their investment.
This is also a stage where you can create templates for different requirements and use them in the appropriate situation. You will need contract management software that supports pre-built templates to make the most of this pre-contract stage.
During this stage, it's key to have a solid understanding of the common type of contracts that your non-profit engages with. We recommend creating contract templates and saving them for others to use, allowing you to save time, resources, and money.
The contract phase is a very critical process that requires accuracy and attention to detail. All details including the agreement, clauses, related documents, vendor details, and more must be included and verified.
A modern contract management system comes with the ability to create and manage contracts with every detail an organization needs. You can also search and retrieve these contracts and all data related to them from a single window.
Another influential part of the contract phase refers to the approval step, where you are required to obtain approval from select individuals within your organization. Dock’s contracting software includes an automated contract approval workflow that can be configured according to the approval flow of your organization. Add managers at each level and get approvals and request reviews to ensure every contract is accurate.
Most importantly, you can leverage an e-signature capability for a rapid, secure contract signing experience.
Once the contract is signed and officially active, you must continually monitor the agreement. It is essential to continue evaluating and analyzing the contract terms and conditions. Both parties should be aware of the obligations and terms that they agreed to comply with.
The vendor portal provided by Dock 365 ensures that you are up to date with all vendor data. The questionnaire, vendor rating facility, and contract expiry/renewal notification features help you to stay informed about your contracts and vendors in the post-contract phase.
Create custom reports based on expiry dates, vendors, contract status, and more to gain full control of your contract data year-round. With advanced contract management tools, non-profits can easily save their time and resources in contract management.
Book a live demo for your contract management software today to know more about the advantages.
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