mature woman working at computer mature woman working at computer

Learn how Amazon Business can partner with your nonprofit organization    

Simplifying grant spending through supply chain digitization

Grants remain a fundamental source of funding for many nonprofits. Learn how digital procurement tools can help.

In the United States alone, there are over 1.8 million registered nonprofit organizations, as reported by These organizations heavily rely on grants to sustain their operations. According to the Giving USA 2023 report, foundations, a critical source of grants, contributed an estimated $105.21 billion to nonprofits in 2022, marking a 2.5% increase from the previous year. Additionally, government grants play a substantial role in nonprofit funding. The 2023 State of Grantseeking Report reveals that 50% of respondents reported receiving state funding, with local (43%) and Federal (40%) funding sources following closely. This information highlights the crucial support that grants provide to nonprofit organizations.


Grant Requirements: A Refresher

Grant applications often come with specific requirements and restrictions that those experienced in the field are well aware of. Typically, this involves submitting a detailed proposal outlining the project's objectives, budget, timeline, and potential impact. Government entities and foundations often require thorough reporting to track the allocation of grant funds and assess outcomes.

Grant eligibility criteria can vary widely. Some grants are limited to specific types of nonprofit organizations, targeting particular populations or addressing specific issues. Others may have requirements regarding organizational size or operational history. It is crucial to carefully review these criteria before embarking on the application process, which can be time-consuming. Managing grants effectively and efficiently can present challenges for nonprofit organizations, including:

  • Compliance with Regulations: Meeting the guidelines and requirements of each grant can be a daunting task, encompassing regulatory compliance, financial management, and reporting obligations.
  • Financial Management: Ensuring funds are utilized according to the grant's stipulations and accurately tracking expenditures is vital.
  • Time Constraints: Applying for and managing grants can be time-intensive, potentially diverting resources from the organization's core mission.
  • Staff Training: Staff members may require training to understand the specific requirements and management processes for different grants.
  • Evaluation and Reporting: Collecting data, measuring success, and reporting results to grantors can be challenging, especially for smaller organizations with limited resources.


By recognizing these challenges, nonprofits can streamline their grant management processes and ensure compliance with all grant requirements.


  • $105.21 billion

    in foundation contributions to nonprofit organization

  • 50%

    of nonprofits reported receiving state funding

How Procurement Hubs Can Assist Nonprofits With Grant Spending

Online procurement hubs (like Amazon Business) offer a range of benefits that can assist nonprofits in effectively managing their grant funds. Here are a few ways these procurement hubs can help:

  1. Streamlined Procurement: With a vast selection of products, online procurement hubs serve as a convenient one-stop-shop for nonprofits, simplifying the procurement process and saving time. This is especially beneficial when using grant money for specific project needs.
  2. Cost Savings: Online procurement platforms offer competitive pricing and bulk discounts on many items, enabling nonprofits to maximize the value of their grants and allocate other funds to important areas.
  3. Detailed Reporting: Online procurement platforms provide detailed purchase analytics and reports, simplifying the grant spending accountability process for nonprofits and improving accuracy.
  4. Compliance: Nonprofits can easily track purchases and promote compliance with grant spending requirements, as well as local, state, and federal laws and regulations, by using online procurement hubs.
  5. Efficiency: Online procurement hubs help automate recurring purchases, reducing manual tasks and allowing nonprofit staff to focus on their primary mission.


By leveraging online procurement platforms, nonprofits can optimize the impact of their restricted and unrestricted grants, ensuring that every dollar contributes meaningfully.


Leveraging Procurement Hubs: A Closing Thought

Evolving technologies and digital purchasing hubs are helping reshaping the landscape of grant management for nonprofits. They provide an invaluable and efficient solution to tackle some of the traditional challenges associated with grant spending. By simplifying procurement processes, promoting compliance, and enhancing financial management, online hubs like Amazon Business empower nonprofits to utilize their grants effectively and maximize their impact. As the nonprofit sector continues to evolve, embracing these digital solutions will be integral to ensuring successful grant management and driving meaningful change.

Learn how Amazon Business partners with nonprofit oganizations

Latest Nonprofit News