Case Study-AW189 Online Services
Non-profit organizations (NPOs) are increasingly paying attention to their sustainability and capacity building is an investment in the future sustainability of nonprofit organizations. Capacity is everything an organization uses to develop, sustain and improve on the delivery of the organization’s mission, vision and initiatives.
BikeAthens vision is to provide a comprehensive transportation network that all Athenians can use with confidence and ease. The mission is to promote walking, cycling, and public transit as solutions to transportation needs in Athens through education, advocacy, and community service.
The BikeAthens Bike Recycling Program (BRP), a cooperative venture with local social support agencies, distributes reconditioned bikes to individuals in the Athens community who are underserved by private and public transportation (BRP, 2015).BikeAthens organization is a nonprofit organization which receives investment income, contributions /grants, other revenue and program service revenue. The part of this company’s income which comes from contributions are in the form of donations such as the carnival, parade of lights, chill cook off etc. Other income includes GOHS grants, membership dues, and federated campaigns.
The budget process includes preparation, deliberation/adoption, implementation/ administration and evaluation. Financial management should and can be used to improve decision making within an organization. Budgets provide a financial plan, and accounting maintains financial integrity. BikeAthens budgets show the net for 2009 was $9,946.97, 2010-$4,341.19, 2011-1,923.43), 2012-$5,932.89, 2013-$7,434.34, and 2014 proposed budget is 1,923.43).During 20011 and the proposed amount for 2014 bring about a negativenet income. When preparing this budget BikeAthens should have planned their budget better and projected their budget.
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Before budgets are developed, program managers should conduct ongoing reviews of their existing programs, identifying potential innovations, and zeroing in on any service delivery issues. Nonprofit organizations must think long-term to succeed. The budget is typically an annual plan, but the nonprofit manager must look beyond annually to understand how decisions today will impact the operational and financial viability of the organization many years ahead.
BikeAthens should have reviewed their fundraising revenue and determined that some of the fundraisers were causing the organization to lose money or earn very little money. From reviewing the Terriple Carnival only $166.00 were made from this event over the years of the budget. Parade of lights and the chili cook-off did not earn any revenue but caused the organization to lose money.
Financial Policies and Procedures
Financial policies clarify the roles, authority, and responsibilities for essential financial management activities and decisions. In the absense of an adopted policy, staff and Board members are likely to operate under a set of assumptions that may or may not be accurate and productive (NCON, 2015). The BikeAthen should have financial policies and procedures in budgeting which will aid in making the proper and sound financial decisions for their organization.
Bikeathen needs to establish how a better way to financial report and projection revenues and expenses by evaluating current revenues / expenses and ways to increase revenue and decrease expenses.Nonprofit organizations need to develop revenue strategies that will allow them to sustain and expand resources for mission activities and achievement.The performance of a successful is dependent on proper strategic planning.
The revenue strategy that will aid BikeAthens the following initiatives
• Increase corporate sponsorship by introducing your program and the benefits to the community
• Apply for additional government Grants to help support the organization’s mission
• Initiate more fundraisers
• Build strong community partnerships
• New, innovative method of budgeting
• Communicated as program’s contribution to planned organizational performance
• Organization goals explained initially, then activities of organization tied to goals
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