Magnolia Therapeutic Solutions is a recognized non-profit that delivers psychotherapy for clients with Post Disturbing Syndrome Disorder (PSTD). Magnolia contributed a long time of intensive help to the victims of 911. In return NYC offered the organization a large grant to aid it fulfill the demands of PSTD solutions.
Mary Stewart, the owner of the corporation believed that the grant succumbed 2001 can be renewed in 2002 as well. Much to her surprise the grant was not renewed. The grant was already factored into her budget for 2002 and the girl had to get back and modify the budget.
Martha was $250, 000 brief and in turn were required to lay away one third from the employees. My own Decision Compared to Boards The board of directors made a decision to approve this, based on Mary’s 2001 spending budget and financials. My decision would have recently been the complete opposing. The decision We would have made was to ask Mary for paperwork backing up the proposed price range. Mary made the budget depending on her scholarships and fundraising from 2001. She did not take into consideration the fact that grant may well not have been reconditioned.
If your woman had built a lower price range, or even a support budget, she’d have had an alternate plan if perhaps NYC would not renew the grant. I made the decision I had because Mary’s 2002 price range was made through to monies she was not actually sure that she would have. Martha even centered the development department raising more cash on a offer she has not been even sure would be agreed to the organization. Company infrastructure a new large influence on my decision to reject the budget. The policies and procedures which can be put into place simply by an organization are carried out so to build accountability and adjust to external and internal requirements.
In accordance to Business Development Group, Inc (1999-2009), “Properly integrated policies and procedures prove to be very critical for achieving growth and earnings through the more effective allocation and utilization of a company’s limited resources (para. 3). Causes Behind the Ultimate Problem There was several causes behind the best problems Magnolia suffered. This kind of seems to have been a result of the lack of liability and responsibility with the economic management. Initially, Mary wrote a budget depending on funds which were not assured.
She even based bringing up money intended for the organization about higher funds for 2002. Since the 2002 budget was written about false funds, this induced a huge trouble and several workers got laid off. This induced the organization to visit a stand still. This problem could have been solved a few different ways. Either by simply writing a low cost with the grants or loans and cash Mary knew 100% will be available. Or she would have written the budget with the NEW YORK CITY grant and had a back up budget in case it was not renewed. This way the board of directors could have viewed either way Jane had a spending budget that could actually be carried out.
Secondly, in 2001 the organization used the remainder from the grant to “increase other administrative companies. The from the scholarships in 2001 should have been budgeted in the growing corporation and the services provided, not really administrative companies. “The identification of a individual service agency’s programs, the creation of your program framework, the project of software managers, as well as the designation of responsibility centers are the fundamental building blocks of economic management (Martin, 2001, l. 16). Key Differences
There are many differences in a charitable organizations incapability to flourish and a for-profits lack of ability to flourish. First, a non-profit can fail in acquiring “revenue simply by not getting enough grants and not having enough staff. For-profits fail to get revenue simply by not making enough earnings. Secondly, non-profits accrue expenditures through plan supplies, staffing, bills, and rental space. A for-profit accrues expenses through production, staffing needs, bills, paying out shareholders and owners, and getting the necessary supplies to keep up with newer products/technology.
Last but not least, non-profits might not have the resources to pay employees/volunteers for schooling or higher education. This could result in a nonprofit’s incapability to thrive. Training important employees is often part of the majority of for-profit businesses. Money is normally not an issue and organizations which will make a profit find out if installed money in an staff training, marketing campaign results will come returning to them. Risk Management “Risk administration can be defined as the identification, prepared control, and reduction of risks into a human service agency (Martin, 2001, g. 187).
Magnolia’s deficit happened because Martha and the business did not possess any risk management set in place. Had the organization a new risk management prepare, Mary might have known a lot better than planning a budget with unknown funds. “A formalized risk management program is one of the few ways a human services agency can easily reduce service delivery costs without trimming either personnel positions or operating budgets (Martin, 2001, p. 187). If Magnolia had applied the essential responsibilities of risk management it may have already been able to find a method to keep workers or get funding elsewhere.
The five tasks will be risk recognition, risk analysis, risk control, risk funding, and administration. These responsibilities are a important component in assisting non-profits flourish. Had Magnolia identified problems or problems that could potentially happen with the spending budget and shortfalls it could include minimized the results. Conclusion Due to Mary Stewart Magnolia came into existence a charitable organization that was assisting in such a needed area, PSTD. Magnolia continued to prosper and obtain many awards for the services performed.
The business received a big 1-year scholarhip from NYC to help emmergency 911 PSTD victims. When it emerged time for Mary to write this for 2002 she included the 2001 1-year offer from NYC. In the end Mary’s budget caused a shortage in the business and one third of the personnel had to be let go. If presently there had been an improved risk management prepare in order this may have been prevented. Also, if Mary acquired created a price range that was based on scholarships she recognized they would always be receiving the organization could have continuing providing the wonderful services at the same rate.