The Significance of Donations for Non-Profit Organizations - Essay Example

A Recommendation Report Insert Insert s When an organization is donating for a worthy it means that it will benefit as much as the donation receivers. Marc and Gravel argue that giving donations is good for business when it is done in a strategic way, and I am not just talking of the potential tax deductions for the organization (2004). Some organizations will spend too much on donations in order to be socially responsible without remembering that their existence is as of much importance as those donations. In this report, recommendations will be given to the organization on how it can increase its donations for the non-profit organization without spending too much or otherwise ending up bankrupt. Cash management and budgeting are the two primary areas of financial management that are of great significance to any organization. According to Bierman and Smidt, it means that the organization must pay very close attention to when the firm has enough funds that will enable it to continue providing donations to its beneficiaries (2007). In fact, if there is an increase in donations that are not well managed can lead to a crisis in the management level of the organization. Moreover, it has been noted that cash flow can be very challenging to predict if the organization does not formulate goals that need to be achieved. Therefore, my recommendation to the organization is that it should formulate achievable goals and budget its finance well. There is a need for supplemental or specialized budgets that will provide the organization with a particular focus on fragments of financial activities relevant to the nonprofit organization (Marc and Gravel, 2004). The use of budget charts by the organization will direct the allocation and maximize the use of funds (Bierman and Smidt, 2007). In the best case scenario, the budget will identify any financial problems that the organization may face or arise in the next fiscal year. Budgeting, in addition, will provide a means to gauge the staff performance and lay down goals that the organization and staff need to reach and steps of achieving them. The organizations profit will be high because of the high-performance rate by the staff and; therefore, the organization will achieve its targets. Thus, it will be able to meet the new increase in donations. Developing strategies and goals that need to be achieved in the organization means that if they are achieved even if the organization raises donations it gives to the non-profit organization, it will not be overspending and will not become bankrupt. Therefore, setting achievable goals, objectives and budgeting can ensure that the organization increases its donations without negative effects (Ross, 2012). Furthermore, a comprehensive budget has been identified as a tool that translates abstract goals and objectives into controllable parts. Before the organization increases its donations, I would recommend the management to ensure that the firm has sufficient liquid assets available that will finance its current and future operations. The reason for doing this is in order to maintain an optimum balance between available, invested and growing assets. Therefore, the organization operating in a fiscal solvent way, it means that it will be able to afford an increase in donations for the non-profit organization without being much affected financially. The organization must focus on financing its current operation smoothly by making use of liquid or current fund much efficiently, and by maximizing obtainable and available resources in enhancing return on the capital or resources (Bierman and Smidt, 2007). In order to maximize its resources, the organization it will need to analyze the cost and benefits of its various sources of revenues. The organization needs to evaluate its long-term investment in relation to the expected returns. When it comes to increasing donations to a non-profit organization, I will recommend the firm to choose a cause that will relate to firm’s businesses. It means that when the organization is increasing its donations it must focus on the products and services that it is offering to its customers. For an instant, if the company is dealing with sport ware goods, then why not sponsor the organization with sports clothes, shoes and other materials. The organization must support a donation that directly affects and influence its targeted market. If when it increases its donations, it means that its brand image will be widely known to its customers and clients. It will in turn influence the customer to buying their products and services and thus, the organization will increase its overall sales (Ross, 2012). The organization must promote its efforts when it is donating, which means that for an instant in this case the firm has increased in donations, it must send out a press release. The management responsible for donations must send photos to the media highlight their efforts in being socially responsible. The firm must ask the benefiting non-profit organization to mention it in its promotional materials as well. I suggest that during the organization’s advertisements and marketing materials such as, newsletters and brochures, the organization must note its donations and charitable activities (Marc and Gravel, 2004). The organization way of disseminating information about its donations to nonprofit organizations is part of doing business and creating a better company image. It may include displaying booklets in the company store to having the staff wear a pin spotlighting the organization charitable activities. Branding of the company image, products and services that the organization offers is a way of increasing the good about of the company. Therefore, even when the organization increases donations, it will not be spending too much because its sales return will be much higher. This is because the organization will have earned the love of the public and potential customers. In business, keeping contact will potential partners, and clients are a significant achievement. Therefore, networking with other donors is essential for an organization to grow and expand. It means that the management responsible for donations must choose someone who will be attending planning meetings for the donated non-profit organization (Ross, 2012). The organization will be able to network with other donors involved in the same cause. One will be able to get valuable contacts for potential partners and investors and also getting major contract deals. When the company makes major contract deals in the events by donating, its revenues will increase, and the company will be doing well in business. It means that the organization will have no problem in increasing donations. In conclusion, while the non-profit organization appreciates the firm’s donations, it can promote its donation activities in building a good image in the community, heighten brand awareness, enhancing customer loyalty and even increase overall sales. The organization must come up with real budgets before increasing its donation funds or activities (Bierman and Smidt, 2007). It is important to involve the company’s employee and customers in your donations. When the customers’ feel good about the donations of the company, they are likely to spread the information about the firm’s products and services to their friends and families’ thus the company will increase its market share. References Bilodeau, Marc, and Nicolas Gravel, (2004) “Voluntary Provision of a Public Good and Individual Morality:”Journal of Public Economics 88 (3–4): 645–666. Divid Ross (2012), Managing People & Performance: Fast Track to Success. Pearson UK, ISBN 0273761714, 9780273761716 Du S, Bhattacharya CB, Sen S (2010) Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. Internal Journal of Management Rev. 12:8–19 Harold, Bierman, and Seymour, Smidt, (2007). The Capital Budgeting Decision: Economic Analysis of Investment Projects. Routledge Press Letter to the Editor Date The Editor Name of the Newspaper Dear Sir/Madam, While circuses and traveling shows on television networks featuring acts of wild animals may look innocent enough, over the past decade, it has become apparent that these acts are inherently unsafe and cruel. In most traveling and circuses shows, show directors have used wild animals that they have kept for months in cramped transport cages. Sometimes you find them hardly larger than they are, and with only short periods outside to perform. Therefore, it means that these animals do not get opportunities to move around and behave naturally, as they are required. That is why animal behaviorists, animal welfare organizations, veterinarians and biologists all over the world continue to condemn wild animal acts. Carnivals and traveling shows that include wild animals also lay a risk to the safety of the humans. 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