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In this assignment the learner has precisely described the non-profit organization- Anglicare WA. The assignment clearly identifies the issues and challenges faced by the organization in terms of the competitors by applying SWOT analysis and PESTEL analysis.
Anglicare WA is a non-profit community service organization situated in Australia. It is associated under each district of Anglican Church of Australia. Under this brand name many other Australian community services agencies runs with distinct legal entities. They assist individuals, families and their communities in terms of building their resilience. They also support people with housing difficulties, relationship issues and financial problems. Their mission is to provide efficient services to clients for sustaining in the current society. They work from Albany in the south to Kunnurra in the north. Angelica care seeks to influence the policy makers and hold a strong leadership quality in their expertise to drive lasting and positive change.
Issues and challenges of non-profit organization, Anglicare WA:
The size of the team:
The staffs in Anglicare WA are efficient in their work but the size of the team members working is few. As the services of the organization increases with the increasing population, the need for more staffs increases too. There comes a time when people seek services but due to lack of staff members, service gets delayed which is a negative impact on the organization (Al-Tabbaa and others 2013 p 601). Their budget is too low to afford legal requirements and leadership for conducting meetings, volunteers, and donors. Lack of efficient service to the customers will lead to low income for the organization. The AIP has declared that minimum 60% of the total expense must be spent on program services rather than on fundraising and administration which in turn impacts the management to recruit more staffs.
The competition in Australia is rising within second due to the increase of population by immigrants. Service centers like Australian Red Cross, ASRC, JRS and much more are becoming a tough competition in the market. People seek help from other community centers as well which leaves Anglicare WA at loss. The AFP has clearly stated that the non-profit organizations are prohibited from raising any fund as they have low trust in the organization. In this case for-profit organization, it gains an advantage.
Funding is a serious issue in terms of community service centers. Due to the rise of exceeding amount of service centers in Australia, funding parties prefer to fund few centers with fewer amounts which in turn leave Anglicare behind. Finding out the perfect source for funding is tough in this competitive market. For non-profit organizations balancing funding and mission is required to earn a profit as well public service (Bai Ge 2013 p 181). This kind of organizations wastes their time for gathering the fund which in turn diminishes the service they provide.
Media and public relations:
Not for profit organization like Anglicare WA, constant deals with media is required for promoting their services and attract more donors. They also have to contend with reporters who scrutinize their legal filings and activities. The National Council of Non-profits stated that to gain public trust, non-profit organizations have to initiate the culture of transparency and accountability. Gaining public trust is tough as people do not believe in this kind of organizations which leaves the organization behind from others.
The ethical issue of non-profit organization, Anglicare WA:
Salary and perks:
The ethical issues arise when the efforts of the non-profit organization are underfunded (Chen, Hsiang Ling, and Chun-Hui Hsu 2013 p 460). Large travel budgets and perks that are granted to unpaid board members and non-profit staffs often raise the concerns upon the ethics of such compensation at times when the organizational social needs suffer as a result.
The non-profit organizations like Anglicare CA have a very little insight on the way they spend their funds while enjoying a large number of tax incentives. This results in low services provided by them due to low funding. The Stanford Social Innovation Review identifies that a large number of non-profit organization lack efficiency while making a plan to use the fund in an appropriate way. This result in the inappropriate success of the programs they conduct due to lack of budgeting practices.
Conflicts of Interest:
Providing large amount funding to major donors creates a conflict of interest among the non-profit organization like Anglicare CA. Lack of transparency has always been an issue with the non-profit organization which helped them to cover up the expenses they have provided to their family members, employees, and officers of the non-profit.
The non-profit organizations like Anglicare CA lack the budget to bring outside auditor to analyse the group’s fund in a regular basis (Coule Tracey and Beth Patmore 2013 p 990). Due to which it creates a lack of knowledge about the abuse of funds and financial fraud. When the in- house accounting department or board conducts the auditing of financial statement without any outsider help then they tend to fraudulently or overlook change numbers for supporting the complete theft of public funds or on-going activities.
In accordance with the Common Fund, tax evasion has become a serious ethical issue that is influencing the internal revenue service (Dainelli and others 2013 p 661). The non-profit organizations illegally promote the political issues which in turn lead to failure in business income in terms of annual returns. They must pay the taxes they should on their income they procure for services and purchases not related to their own purpose.
Internal environmental analysis of the non-profit organization, Anglicare WA:
Non-profit organizations like Anglicare CA are tax exempt which provides an advantage over profit-organizations. As they do not have any tax expenses, they can provide services to customers at discount and even they can offer services to the customers who do not pay any sales tax at the time of purchase. This kind of organizations is comprises of attorneys, artists, and canvassers. These volunteers help to do enormous savings in terms of business which is desired for this kind of organization. The board of directors is comprised of volunteers who bring an additional advantage to the organization.
Barely non-profit organizations like Anglicare cover their expenses in terms of their revenues. The employees in this organization are focused mainly on their job satisfaction and not much to their salaries. Salaries provided to the employees are quite less in terms of profit organizations. Upon investment one can never expect for return and often expect a very low salary. This kind of organization is very much vulnerable to budgetary deficits (Felício and others 2013 p 2139).
Any fund that the organization is eligible is an opportunity. It can be from the government or private firm (D’Espallier and others 2013 p 175). During the time of recession, many grants are provided to this kind of organization. Hence, finding and applying them is a substantial work. This kind of organization enjoys the alliance with other organizations in terms of funding and profit. In turn, it is profitable for both the companies.
At the time of economic crisis, this organization is quite vulnerable. As when the money is tight, their funding gets minimize. Public charity is one of the major sources of their funding, during the time of crisis it lowers down. The scandals can also affect the business growth of this organization. Recruiting new employees within the budget is a constant threat for this organization (McDermott and others 2013 p 1500).
Macro environmental analysis of the non-profit organization, Anglicare WA:
Government stability is a key issue in this organization for future services as it focuses on community development services. Taxation policies have a direct impact both negative and positive on the likelihood of donors that are continuing to donate and also on the organization for obtaining new donors. Each factor including taxation policies, government stability, social welfare policies and foreign trade regulations influence Angelica WA in terms of profitability.
Economic factors like unemployment trend, money supply, interest rates, etc. influence the profitability of the organization in terms of public health service. The increasing cost of business including bank fees, rental payments, and utility bills are tightening the budgets in other areas. The increasing rate of unemployment is also lowering the fund for this organization. This, in turn, decreases the availability of income which leads to lower service to the people who needs assistance (Flynn Patrice and Virginia Hodgkinson 2013).
The population demographics, lifestyle changes, leisure, social mobility and attitude towards work directly impacts on the socio-cultural issue of Anglicare CA. The spending habits of customers change constantly which affects the organization. Different people have a different preference; hence it is tough to understand their need and provide efficient service to them.
It is tough for upgrading Anglicare CA with the latest technology as it requires significant cost to upgrade as well as training costs that needs to be provided to the employees. However, reaching to donors, supporters and volunteers are at ease with Anglicare CA by the use of latest technology and social media (James Estelle and Susan Rose-Ackerman 2013).
A financial audit is desired to highlight the areas where Anglicare CA lacks and where it leads. Understanding the needs of customers and providing them efficient services is required to understand the work efficiency of the staffs. Waste disposal and energy consumption are the two important factors that Anglicare CA should consider to gain more customers as well raise funding (Smith and others 2013 p 439).
The proposed model of occupational health and safety influences the legal factor of Anglicare CA. The health and safety practices must be encountered to earn more funding as well as serve customer efficiently. The legal framework on which this organization operates is health and safety requirements, employment laws and competition laws which provide profitability to the organization.
Stakeholders and competitor’s analysis of non-profit organization- Anglicare WA:
Conducting a stakeholder analysis is desired for Anglicare WA as it is essential for non-profit organizations. This will help in the strategic planning process as well as the right level of aggregation. The right level of aggregation is required to determine organizational needs. It is also essential to look the performance level of staffs in terms of organizational response. The performance of the organization can be enhanced with the help of stakeholder analysis (Pestoff Victor and Taco Brandsen 2013). In the strategic planning process, stakeholders comprise of funders, partners, and managers. Community partners can be other organizations or family members. Funders assist with resources that will enable the organization to carry out their missions. The money invested must be evaluated efficiently. Partners are also desired because of their insights in terms of potential opportunities which can enhance yearly revenues. The buy-in commitment is critical in terms of stakeholder analysis. It consists of three crucial stages; making the stakeholder to feel being a part of the process, keeping the channel of communication open, from the beginning the involvement of stakeholder is beneficial. Involving all the stakeholders to be a part will enable a better strategic planning process as well as will be profitable for the organization to meet its desired goal.
Identification of the consultancy:
The consultancy in the organization Anglicare WA is important to resolve all the issues that are faced by the organization. The different kinds of consultant include:
Management consultants: they perform the typical function in the organization such as fund development, strategic planning, governance issue and other operations (Young Dennis 2013).
Organizational development consultants: They focus on less tangible aspects which are equally crucial in an organization like human relationships and interpersonal dynamics.
Program consultants: This is the expertise that controls a particular program area like community housing development, mental health advocacy, arts education.
Technical specialists: These people bring a professional skill in the organization that enhances the organizational performance.
These members assist the organization in several ways including technical or environmental issues. The capabilities of the organization are solely based on their hands. They facilitate the process by including the stakeholders to solve their problems. They support the organization in funding as well as other crucial terms which reduce the challenges faced by the organization (Zadek and others 2013).
In this assignment, the learner has efficiently described all the challenges and risk factors faced by the non-profit organization- Anglicare WA. The learner has precisely described the micro and macro environmental factors that affect the organization. The organization must induce the help of the consultant as well as solve the issues strategically with the concern of the stakeholders. The budget practices they must adhere should contain income based budgeting, a brief understanding of revenue, budget relationship to the long-term goals, infrastructure expense and other additional operations. This will critically develop the implicit and explicit element evident in the assignment.
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