Amid economic uncertainty, we note a significant outpouring of concerns from nonprofits and charities regarding the potential economic impacts of the tariff on the sector. These concerns are supported by a recent Pillar survey.
As part of Pillar’s ongoing advocacy efforts, On Wednesday March 26, 2025, Pillar Nonprofit Network met with the City of London’s Director of Financial Services at Innovation Works. The meeting was at the request of Pillar with the objective to advocate for the sector and voice its concerns and priorities ahead of the city’s upcoming procurement policy review.
Why We Want to Stay Engaged
The City's procurement review comes at a crucial time, given the potential economic fallout that might arise due to the tariff war. As a sector, we see this as an opportunity to address key barriers and concerns. It also presents a pathway for the city to strengthen its connection with the sector, and to facilitate the sharing of vital information and resources–to help nonprofits and charities navigate their internal procurement policies more effectively.
Key Concerns and Priorities of the Sector
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Alignment with the City Values: We seek assurance that companies awarded contracts within the City of London undergo a continuous vetting process before, during, and after the contracts are awarded to ensure alignment with the City’s values and the broader London community.
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Procurement Policy with a Focus on Social Value Benefits: We suspect that social value benefits are often not embedded in the City’s procurement practices. The current emphasis on the lowest price, rather than overall social impact, creates barriers for the nonprofit sector in accessing procurement opportunities (ONN).
We ask that the City prioritise the nonprofit business model, as it aligns more closely with the values of the City and the broader community. The sector integrates social value into its work by supporting inclusive employment, strengthening London’s economy, promoting sustainability, and reinvesting in community initiatives (ONN).
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Knowledge-sharing and participation challenges: Since COVID-19, nonprofits have faced overwhelming demand while operating with limited resources. The resulting burnout and stress further strain their capacity, making meaningful participation in the City’s procurement processes challenging. Without intentional outreach from the City—in providing resources and facilitating knowledge-sharing within our network—this vital sector risks being left behind.
By addressing these concerns, the City of London and the nonprofit sector can work together to provide stronger, values-driven alternatives to support our communities during uncertain times.
More Resources
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Keeping human services in community hands: Why nonprofits deliver better
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Not for Sale: The Case for Nonprofit Ownership and Operation of Community Infrastructure
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Leveraging the procurement power of public sector and anchor institutions for community benefits
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Boosting Ontario’s prosperity and innovation through social procurement