5 FAQs About Sourcewell, Answered

Whether you're the head of a small nonprofit, the superintendent of a school district or the director of a government agency, it's important for you to know about Sourcewell. Sourcewell is an organization that helps not-for-profit entities secure the equipment and technology required to stay competitive in our modern world, without facing the frustrations and potential issues involved with vendor selection or the RFP process.

Sourcewell is an extremely useful tool for nonprofit organizations, government agencies and education systems; here’s how it works:

1. What Is Sourcewell?

Sourcewell is a member-focused public cooperative of more than 50,000 member agencies throughout the United States. Sourcewell is a municipal contracting agency that operates as a public entity under legislative authority through Minnesota Statute 123A.21.

All of Sourcewell's employees are public employees, just like the Sourcewell members who participate in the program. Sourcewell memberships are free, and they offer members the opportunity for cost savings on equipment and technology.

2. What Is Sourcewell's Primary Purpose?

There are many goals Sourcewell pursues on behalf of its members, but its primary purpose is to create a national cooperative of contract purchasing opportunities for products and services on behalf of its members. Cooperative contract purchasing opportunities save members time and money in their search for equipment and technology, whether it means buying a new phone system or seeking out a managed print service provider.

3. How Is It Governed?

The Sourcewell Board of Directors governs the National Joint Powers Alliance. The individual members of the board come from positions relevant to the member base the group serves. Sourcewell board members include school board directors, city council members and county commissioners.

4. How Is Sourcewell Funded?

This is perhaps the most pressing question on the minds of many potential Sourcewell members. How is it that Sourcewell offers affordable contract purchasing solutions when members pay no fees or dues to join?

Sourcewell is financially supported by the vendors providing products and services to members. Because vendors have the potential to secure multiple contracts and thousands of sale opportunities through one purchasing contract solution, they also have a lot to gain by working with Sourcewell. The reality of the situation is, many vendors find the traditional rfp process resource-draining and time-consuming as well. Sourcewell enables them to work with nonprofits and other qualifying entities in a more efficient manner.

Vendors pay an administrative fee to Sourcewell based upon a percentage of sales processed through the competitive solicitations process. With each contract awarded to a vendor, the fees paid to Sourcewell increase. Those fees cover the costs of contract marketing and facilitation, as well as offsetting the operational costs incurred by Sourcewell. Sourcewell receives no state or federal support, but rather, is a self-funded organization.

5. Who Is Eligible For Membership?

Sourcewell membership is available to any government agency, education institution (private or public), tribal entity or nonprofit organization. Any organization that falls into one of these categories is eligible for membership in the Sourcewell.

There is no cost associated with membership, either upfront or long-term, and your organization faces no obligation or liability upon joining. Sourcewell's contract purchasing program is available to organizations within nonprofit, education and government services sectors with no minimum contract purchasing requirements or commitments.

Sourcewell membership offers the potential for cost savings and stress-free adoption of new equipment, technology products and services. If you're interested in joining Sourcewell, visit their Become a Member page to learn even more and submit an application today.

And for more information about Sourcewell cooperative contracts, contact a Marco rep.