Telecommunications can be confusing to navigate. With a myriad of plans, packages and providers, it can be difficult to know where to start. For time-poor non-profits and charities with sharply limited resources, negotiating the best rates and managing constantly shifting needs can be overwhelming.
What is charity or government telco pricing?
A pricing model that refers to telecommunications services that are specifically designed for governments, charities and not-for-profit organisations. These plans typically have lower costs than traditional telecommunications plans, and may include discounts, waived fees, or other cost savings measures.
The goal of charity telecommunications pricing is to make telco services more affordable for charities and non-profits, reducing their overheads and helping them to fulfill their mission.
Some examples of what may be included:
Waiving of activation or setup fees
A technology fund to help with the purchase of hardware
Reduced rates for internet and phone services
How does charity telco pricing work?
There are several different pricing constructs potentially available to NFPs and charities, and each one has its own eligibility criteria. Some are state-based – such as Victorian Telecommunications Services (VTS) – while others are Australia-wide. Some are specific to the charity/not-for-profit sector, whilst others are designed primarily for government agencies, but which are also available to many government-funded NFPs.
For example, VTS – the successor to the Telecommunications Purchasing and Management Strategy (TPAMS) – is the mandatory pricing model for all Victorian government agencies. However, if a charity receives more than 25% of their funding from the Victorian state government, they are also eligible.
How much is an NFP likely to save on their telco?
We have worked with many not-for-profits and charities to assess eligibility, handle the application process and implement the available charity pricing models.
When combined with patient and diligent evaluation of organisational needs, available providers and their plans, it’s quite possible to achieve 60% or more in savings on current telco spend when moving to government or charity pricing.
On a recent project, our telco team delivered 70% telco savings for a refugee support not-for-profit.
These percentages collectively represent a huge $6.4 million in projected savings on telco services over standard three-year contracts.
Each pricing construct naturally has its own features and benefits, and the individual savings a charity can achieve will be determined by their current pricing, fleet size and a range of other factors.
Is it difficult to get onto charity pricing?
As long as an organisation meets the eligibility criteria, they can access reduced rates directly through a vendor. However, even after getting onto charity/government telco pricing, there is frequently significant scope for further savings.
Unfortunately, this can often be difficult for a non-profit to achieve, due to the inherently complex nature of telecommunications services. With a huge range of vendors, plans and features across data and internet, mobility, fixed voice and more, it can be easy to make mistakes.
In VTS alone, there are three major vendors collectively offering more than 30 different mobile plans.
Several of our clients were already on the best available charity telco pricing, and our expert team identified savings averaging an additional 28% on top of the VTS packages offered by the major telco vendors.
How can a non-profit check their eligibility?
Each type of pricing model has its own criteria, based on factors such as location, revenue sources, and size. For example, VTS is only available to not-for-profit organisations who are both located in Victoria and receive 25% or more of their funding from the Victorian state government. You can find out more about the VTS in our article.
The easiest way to find out if your NFP or charity is eligible for any of the government or charity telecommunications pricing constructs is to have a chat with the team at Dog and Bone.
We can analyse, optimise and manage your telco services, advise on your eligibility and facilitate the process of getting your organisation onto the best rates and saving you money.
Give us a call on (03) 9403 5700 or fill in your information and we’ll get in touch with you to discuss how we can help you save on your telco costs.