Procurement and Supplier Management Policy

As a registered charity, [Charity name] is committed to ensuring that all procurement and supplier management activities are carried out in a transparent, fair, ethical, and cost-effective manner.
This Procurement and Supplier Management Policy sets out the principles, procedures, and governance arrangements governing the acquisition of goods, services, and works, and the ongoing management of suppliers.

The Trustees recognise that effective procurement supports good stewardship of charitable resources and helps safeguard the Charity’s reputation and compliance with legal obligations.

Purpose of the Policy

1.1 The purpose of this Policy is to:

Ensure value for money in procurement decisions.
Promote fairness, transparency, and accountability.
Manage procurement-related risks.
Ensure compliance with legal and regulatory requirements.

1.2 This Policy supports responsible decision-making and effective supplier relationships.

Scope of the Policy

2.1 This Policy applies to:

Trustees.
Employees and volunteers involved in procurement.
Contractors and agents acting on behalf of the Charity.

2.2 It applies to all procurement activity, including:

Goods and services.
Consultancy and professional services.
IT, facilities, and operational contracts.

Procurement Principles

3.1 Procurement activities will be guided by the following principles:

Best value for money, considering quality, cost, and whole-life value.
Fair and open competition.
Transparency and accountability.
Ethical and sustainable sourcing.
Proportionate risk management.

3.2 Procurement decisions must support the Charity’s charitable purposes and values.

Legal and Regulatory Compliance

4.1 The Charity will comply with:

Charity law and Charity Commission guidance.
Contract law and applicable regulations.
Data protection and safeguarding requirements.

4.2 Where applicable, public procurement regulations will be considered.

Procurement Authority and Approval

5.1 Procurement authority will be:

Clearly defined.
Delegated appropriately.

5.2 Spending limits and approval thresholds will be documented and monitored.

5.3 Significant or high-risk procurement decisions require Trustee approval.

Procurement Procedures

6.1 Procurement processes will be proportionate to the value and risk of the purchase.

6.2 Procedures may include:

Obtaining multiple quotations.
Competitive tendering.
Evaluation against predefined criteria.

6.3 Records of procurement decisions will be maintained.

Supplier Selection and Due Diligence

7.1 Suppliers will be selected based on:

Capability and experience.
Cost and value.
Ethical, environmental, and safeguarding standards.

7.2 Due diligence may include:

Financial checks.
References.
Compliance with legal and regulatory requirements.

Conflicts of Interest

8.1 All individuals involved in procurement must:

Declare actual or potential conflicts of interest.

8.2 Conflicts will be managed in accordance with the Charity’s Conflicts of Interest Policy.

Ethical, Social, and Environmental Considerations

9.1 The Charity will seek to:

Work with ethical suppliers.
Promote sustainability and environmental responsibility.
Avoid suppliers engaged in unlawful or unethical practices.

9.2 Procurement decisions will balance ethical considerations with value for money.

Contract Management

10.1 Contracts will:

Be documented in writing where appropriate.
Clearly define roles, responsibilities, and deliverables.

10.2 Contract performance will be monitored to ensure:

Compliance with terms.
Quality and value for money.

Supplier Performance and Relationship Management

11.1 Supplier performance will be reviewed periodically.

11.2 Issues relating to performance, quality, or conduct will be:

Addressed promptly.
Documented and escalated where necessary.

Payment and Financial Controls

12.1 Payments to suppliers will:

Follow agreed terms.
Comply with the Charity’s financial controls.

12.2 Segregation of duties will be maintained wherever possible.

Termination and Dispute Resolution

13.1 The Charity reserves the right to terminate supplier relationships where:

Contractual terms are breached.
Performance is unsatisfactory.
Ethical or legal concerns arise.

13.2 Disputes will be managed fairly and in accordance with contractual provisions.

Governance and Responsibility

14.1 The Board of Trustees has overall responsibility for procurement oversight.

14.2 Day-to-day procurement may be delegated, but accountability remains with the Trustees.

Monitoring and Review

15.1 This Policy will be reviewed:

At least annually, or
Following significant changes in procurement activity or regulation.

15.2 Any amendments must be approved by the Board of Trustees.

Conclusion

By adhering to this Procurement and Supplier Management Policy, [Charity name] ensures that procurement activities are conducted responsibly, ethically, and efficiently, safeguarding charitable funds and supporting the Charity’s objectives.

Signed: ………………………………………
Chair of the Board of Trustees

Date: ………………………………………

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Disclaimer:

Naail & Co provides these policy templates solely as guidelines or standard templates to assist charities in developing their own policies in accordance with Charity Commission England & Wales compliance. These templates are not intended to serve as legal or professional advice, and Naail & Co cannot be held responsible or liable for any outcomes arising from their use. It is essential that each registered charity carefully tailors and customizes these policies to reflect its specific needs, structure, and legal obligations. We strongly recommend that charities seek independent legal or professional advice to ensure compliance with all relevant laws and regulations.

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