New Purchasing Co-op Helps Ohio Nonprofits Shrink Their Bills

Cleveland OH

20 January, 2022

12:40 PM

Description

Press release from Cleveland Owns: Jan. 20, 2022 On Wednesday, January 19th, Greater Cleveland Congregations, Cleveland Owns, and the Community Purchasing Alliance will launch PowerUp Purchasing Cooperative, a new member-owned social enterprise that will enable congregations and nonprofits to shrink their bills and expand their missions. PowerUp (www.powerup.coop) is the result of 18 months of organizing to respond to the financial crisis the pandemic has imposed on houses of worship and other community serving nonprofits. "We know that many congregations provide vital spaces of community and healing in Cleveland and beyond," said Keisha Krumm, Lead Organizer with Greater Cleveland Congregations, a faith-based organizing group. "We must act now to save our congregations from going under during the pandemic." "PowerUp is a cooperative business built on trust," said Jonathan Welle, Executive Director of Cleveland Owns, a nonprofit that incubates cooperative businesses. "We're doing together what we would be unable to do alone - save money and spend in line with our values through the power up group purchasing." Already 28 institutions saved tens of thousands of dollars in a group purchase of electricity this summer. And dozens of institutions have received waste-hauling quotes with average savings of 30 - 50% by switching to local vendors with a preferred relationship with PowerUp. PowerUp combines the spending power of community organizations such as churches, synagogues, charter schools, and other nonprofits to negotiate better rates for facilities maintenance services such as electric supply contracts, waste-hauling services, property insurance and more. PowerUp's business model is based on that of its partner, CPA, a successful purchasing cooperative with more than 100 member-owners in Washington, DC. "In DC we're serving more than 100 institutions in a dozen spend areas because we've built an organization based on trust," said Boris Segal, co-Director of CPA. "We've also shifted millions of dollars in spend to Black- and Brown-owned businesses through the power of group purchasing. We're excited to partner with GCC and Cleveland Owns to replicate that success in Cleveland." This press release was produced by Cleveland Owns. The views expressed here are the author's own.