I have a case study about a non profit organisation ( Bread for the world).I need you to read it and make sure that all the following questions are answered, I’m sure that there are few that are not answered or not answered enough, if you see so please fix it and modify in a different color. This is what I want to know: how do they plan? what plans do they develop? how are those plans integrated and especially how does the strategic level planning connect to resource planning? What is the process they use to make decisions for how they distribute resources? Who recommends? who decides? How are priorities set? What is their budgeting process? What budget system do they use? How do they control the flow of funding in the budget year to make sure they don’t run out of funds? What accounting system (cash, accrual, modified accrual, etc) do they use and if you can tell, why? How do they control finances and meet financial reporting requirements? Do they use knowledge management and if so how? Do they use performance management? If so, what measures do they use and how do they tie to strategic planning? Do they use risk management, if so how? How do they use audit? Do they have a continuity plan? Notice that my emphasis is on process and how. If you can answer these questions either in your data provided and/or your analysis and recommendations, you have a good case study.
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Bread for the World Organization
Bread for the World is an organization that was set in the late early 1970s with the aim of
feeding the hungry and supporting the less fortunate in the society. It is a non-partisan Christian
citizen’s movement, which is largely located in the US with one common purpose, to end hunger.
One of the organization’s policies is to end hunger both in the US and abroad by changing
programs, conditions and policies that govern different areas. Mobilizing equal resource
distribution and equal opportunities for the poor and all the middles class in the society is another
main aim for the company. The organization founders met to formulate on how they could use
their influence to mobiles for change in the United States. The group under the leadership of
Reverend Simon began testing ideas in 1974, where more than 600 people joined the movement
The organization is headquartered in Washington DC. It is under the industry of Social
Assistance and in terms of its size, it has between 51 to 200 employees. Its membership spans to
over 2,600 churches in 47 denominations. The organization has the main and central office in
Washington DC. The president resides in Washington DC and he is the one who oversees
everything by acting as the Chief Executive Officer as well. Then, there are more than fifteen
offices across the United States alone and more than 34 across the world. Every office has a
manager who oversees and is in charge of everything around their area of control. There are
human resource managers as well in every office who ensures that the welfare of employees in
their area of jurisdiction is well catered for.
Moreover, all the offices have got campaign managers with three or so campaign
organizers and planners under them. Their work is to ensure that they conduct any form of
fundraising activity by organizing them and ensuring they are a success to the moment the
money collected is handed over to the financial budgeting team. All employees therefore under
the campaign managers have a lot of work to do from advertising the campaigns up to the point
when it becomes a success. This is basically how the organization is governed.
The organization basically operate in such a manner that the money obtained from the
fundraisers as well as from donations are distributed in accordance to the organizations goals
and objectives. After the monetary allocations, the budget teams conduct the head of all the
churches to cite any form of need in their area. The churches as well act as donors through
fundraisers and actual donations. After the allocation of the finance by the budget teams, it is
now the role of financial administrators and procurement officers with the help of managers from
various and specific offices to ensure that all the needed material such as food, medicine and
other supplies are bought on the right time and stored in various respective stores. When it is
needed to be used, then the process of acquiring the supplies is followed and later the finance
team performs some calculations to ensure that everything was used accordingly. After this, the
cycle begins again.
The movement rallied all US citizens to support and feed the hungry. Each year the
organization calls upon all churches in the US to write letters and send them to Congress
addressing the need for government to take caution and support the hungry as well as put
measures that enable their citizen’s health. Bread for the world has focused on a different mission
for the last decade offering assistant founded on examining the needs of different people. The
organization also speaks against domestic violence and any act of inhuman that would
undermine the well-being of the people (Simon, 2014).
The core purpose of the Bread for the world is to end hunger in the world and provide
assistance to those in distress. It aims at comforting those facing humanly caused distress and
naturally caused problems. The organization does not discriminate any person regardless of their
race, gender, or religion nor do they support any political side but works with the current
government in power (Harris, 2013).
Bread for the Word organization has one mission statement that is, provision for food and
ending hunger in the world. The organization considers hunger to be the contributing factor of
social crimes in the community. Helping the less fortunate and those facing natural disasters
without excluding any society. The managers of the organization have been able to mobilize
resources, and provide primary support for the children, offer scholarships and medical care as
well. Organization policies stipulate that ending hunger cannot be achieved through constant aid
whenever there is a crisis, but by helping people initiate projects that can benefit their families
(Harris, 2013). Bread for the world focuses on young people employment and the need to end
drug abuse in the community.
The only way this organization has been able to focus and achieve its goals has been
through working together with other profit and non-profit making organization to fund the
program. Through fulfilling the founder’s vision, the organization management has established
goals and objectives and ways that they can be implemented to grow their communities. People
do not need to be fed every time, but they should be taught and provided with safe avenues so
that they can work and feed themselves for the rest of their lives. Bread for the World believes
that it’s not right to perceive that people who are hungry only deserve food, but they believe that
they need more and provisions given should be of high quality (Harris, 2013).
Bread for the World organization has one simple planning philosophy, and this is ending
hunger and curbing poverty through strategic planning. Based on this planning philosophy, the
organization has four major interacting elements. One of them is their noble cause. This is
guided by their major philosophies, principles, and beliefs that they have anchored onto the
world. These include their vision which guides their work in building a better world to those who
deserve it and their mission which guides the organization into doing great work.
Environmental context is another interacting element. Based on this element, Bread for
the World has put into consideration all organizational realities including leadership, current
programs, and budget as well as staff, all the vital issues in its immediate environment, the trends
in the field, competitors and collaborators as well as expectations and constituent needs. All
these are what the organization faces but as part of its planning philosophy it has put into
consideration all these. The other element is its core competencies and value position. The
organization, being guided by its mission and vision ensures that it maximizes its strengths as
much as possible and work on their weaknesses at the same time.
The last element is the action plan and strategic imperatives with a positive performance
metric. When the organization stresses on this, it will ensure that it delivers to its maximum
potential. All these elements have been guided by a strategic plan, which efficiently executes all
the plans of the organization.
Bread for the world has set up a proper strategic plan that enables the organization to run
smoothly. This has been achieved through the provision of medical care, food, and education to
the needy by emphasizing on the training of its employees the organization focuses on working
with every member of the society locally and abroad to enable achieve its objectives. The
organization has four strategic plans that aim at proving the life of different people. These
strategic objectives include; improving the quality of work within the organization and
externally. This has been achieved by offering regular training to the employees, strengthening
skills, modeling behavior and improving their knowledge.
Regular assessment of learning needs and talent development in the society. Secondly,
the organization focuses on continuity in the missions through stimulation of internal mobility,
and increase retention of capable leaders and professional within the organization. Thirdly,
transmitting the organization’s norms and values. That has been made possible through
transmission of the firm’s development goals, training and research. Finally, the organization
strategic objective has focused on enabling managers to set standards on behavior and attitudes
of their staffs.
The strategic plan for Bread for the World covers three to five years. However,
depending on the level of performance and the new projects that need to be brought into place,
the strategic plan can be updated as soon as the time for implementation of the projects comes.
However, in spite of this, the soonest that the strategic plan can be updated is after three years.
As explained above, the plans of the organization are linked. As explained earlier, since the
organization is a non-profit organization, its resource planning, therefore, relies a lot on its
strategic planning since they value performance and achieving their set goals. Just to mention,
other three levels of plans that the organization uses include contingency, operational and tactical
planning methods, which will explain later in the course of the paper.
Organization programming and planning of resource allocation
Effective and efficient programming enable proper strategic planning and allocation of
resources. Bread for the world needs to put in place measures that can enable efficient resources
distribution. Programming will help managers and other staff members to establish methods and
resources allocation on more pressing matters. With an adequate plan and programs, the
organization will be able to measures the outcomes and the achievement made during the
particular period. Moreover, the organization can hold individuals accountable for
mismanagement of resources and the need to establish adequate measures and policies that will
regulate resource allocation.
In order for the organization to make decisions about resource allocation and distribution,
it depends on the resource availability and the time available and the time required to complete a
specific task. Since this is not a profit-making organization, it does not base its decisions on
whether the market is highly competitive but it however bases its decisions on the set goals and
objectives of the company. If certain goal needs to be achieved first in order to realize certain
performance then resource allocation and distribution goes there. This always ensures that the
organization is at it toes in serving all the people who are in need and deserve their help.
Usually, a good budgeting process engages those are responsible in working alongside to
the budget and implementing the organizations goals and objectives in creating the budget.
Bread for the World uses both a cash flow budget and a static budget. This is because they have a
lot of storage units and warehouses all over the world and therefore they always need a static
budget to cater for this. Moreover, they have an active financial flow of funds and therefore the
cash flow budgets take care of this.
The process of budgeting is quite the same. First of all, the budget process is written
down to ensure thoroughness in the process, then the executive financial director in charge of the
financial administrative team, with the help of the committee members decides who should be
involved and at what specific time. Annualized timeline is then established where an earlier time
is always the case. It is always better to start early. Then, specific tasks with specific
responsibility assignments are listed before ensuring the synchronization of both the accounting
line items and the budget line items. Tools, templates and worksheets that promote inclusion are
the developed linking detail to summary of all relevant budget components and facilitate “what
if” scenarios. Finally, the budgeting process is concluded by ensuring that policies for adhering
to approval authority, handling variances and the budget itself are adopted.
Budgeting and Budget execution
For every organization, budgeting is essential and is a very critical aspect that needs to be
addressed and keenly observed. For non-profit making organizations, their budget preparation is
more complex; this is because compared with a profit-making organization that focuses on
maximizing profit when tabling their budget. But for non-profit making, they focus on attaining
their set goals. The best model for budgeting of Bread for the world organization is through use
of zero-based budgeting. This model is more efficient and reliable as it helps in focusing on
details and serves the management with information on projects that need to be invested on and
those that should be abandoned depending on their potential productivity.
In as far as the fact that the organization takes budgeting seriously, its major focus,
however, is more on its performance as compared to budgeting. The most interesting and unique
thing about Bread for the World is that the concern of the budget balancing is not taken into
consideration. The budget does not balance at the end of most financial, fiscal years. At the
beginning of every fiscal budgeting cycle, the organization looks at the financial outcome that it
needs to attain that year before setting up their budget rather than looking at whether their budget
will balance or not. This means that the company focuses most on performance and delivery of
services to the people who deserve.
Considering this, the organization adopts three budgets. These are a surplus budget, a
break-even budget, and a deficit budget. A surplus budget helps in paying down any debt by
increasing the reserves. This way, cash flow in the cash flow is eased, and the organization will
have a higher net worth at the end of every annual budgeting cycle. This way, the organization
will be able to enjoy a better financial position in the following year. Since the organization
mostly focuses on its performance most rather than balancing its budget, often its budget does
not balance, and they run into deficits. This way, they do not gain ground fast enough but to
ensure that it does fall or lose ground either, the organization adopts the break-even budget.
This budget will require the finance committee and the staff to come up with ways to
which the expenses will be decreased and increase the revenues. Then after this, the organization
should just be carefully optimistic that their plans will work out. Bread for the world started
adopting this budgeting system since 2004, and it has since worked out.
The last budget that the organization is adopting is the deficit budget. Bread for the
World organization adopts this budget because of two major reasons. One is that it helps in
decision making on investment. For instance, the company has been investing a lot in facilitating
its new programming measures as well as enhancing its fundraising capacities. The other reason
is that it helps the organization in the proper prioritization of funds. For instance, the
organization’s top management may decide to perform a certain task and leave another one, like
giving employees a raise. This way, they might have a deficit at the end of the year since the
expenditure will be more than the income. This is where the deficit budget comes in handy in
handling the situation.
In any organization that succeeds in their practices, they task budgeting activities with the
finance team who analyze and make a necessary adjustment after evaluations. Bread for the
world organization prepares operational and financing budgets for a particular period and set
adequate resources to achieve the budget. By using a Zero-based budget, finance team can
overcome any deference that may arise or be in existence within the initial traditional budgets.
Bread for the world finance team begins their budgets by zero every period as it ensures that all
finances set have been fully utilized to the best of the organization’s benefits and objectives.
All the plans, programs and budgets, just as explained before, are organized based on the
availability of the resources, the timeline for the task to be completed and the goals to be
achieved if the task is executed. First of all, before it happens, the financial administrators
committee will have a joint meeting with the top-level management team. Then, they would jot
down all the goals and objectives that needs to be accomplished in that specific fiscal financial
year, on the basis of important task prioritization. After this, the tasks are passed on to the
budget committee alone where they arrange them on the basis of the amount of monetary value it
may need. Then this is weighed and a report is drafted and taken to the human resource manager
who approves and passes it to the CEO and later it is discussed with the stakeholders and the
major donors before it is fully approved. After its approval, the budgeting team led by the
financial administrators assign monetary values to the tasks and finds out whether the budget
balances or not. The budget will have been fully amended and approved.
Upon its approval, the budget is executed by assigning tasks to the various respective
bodies responsible for accomplishing a specific task. The task will have a head manager who will
be in charge of all the monetary issues during the execution process. All the tasks are assigned
through the same process. This is how the budget is executed. The above explained method they
use for budgeting is the same as the process used for planning.
However, in order for the organization to ensure that its plans have been well integrated,
it has to look at whether the organization has maximized its financial value. In order to do this, it
has to ensure that several sectors are well catered for on financial basis. These include healthcare
analytics, strategic corporate performance management, and operation planning department as
well as scheduling and planning departments across all the 32 major offices across the world. In
doing so, then the organization will be sure that it is running smoothly and all its plans are well
Managers in this organization are provided with the clear classification of which areas to
fund and the areas that need to be set for the next budget. All the projects are ranked depending
on urgency and need for consultations and discussion with all departments and the stakeholders.
The most interesting thing on how the organization budgets and plans its resources is by setting
programs and funds for individuals who are vulnerable in a different special budget, this includes
all cost that is not directly linked to particular projects but within the headquarters planned
Bread for the World organization has got mid-year interim financial reports. This usually
takes place in the middle of every annual fiscal, financial year. This is on 1st April every year.
Here, the team in charge of financial reporting, reports all the details on stakeholder’s equity
statement, cash flows statements, balance sheets, a comprehensive statement on income as well
as the amount of income itself. On 1st April every year, these financial reports are given out in
written report formats. However, at the end of every fiscal year and before the beginning of the
annual budgeting cycle, these financial reports are given in presentations format by the financial
administrators who are responsible for the financial reports. Keeping track of the expenses
ensure that resources are appropriately utilized, and projects are undertaken efficiently.
Bread for the World organization, being a non-profit organization, focuses on whether i …
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