Ferland Final Project Executive Summary

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Southern New Hampshire University *

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445

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Business

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Apr 3, 2024

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1 Final Project: The Executive Summary Kylie Ferland Southern New Hampshire University OL-445-H3935 Professor Sofoklis Hiotellis February 23, 2024

2 Emerald City Community Economic Development Corporation (ECEED) has spent the last past 3 years, from 2012 to 2014, getting their finances in order. In 2012, their expenses were causing them to operate on a $123,000 deficit. In 2014, their expense allowed them to operate with $410,000 in a net profit. That means that they have reduced their expenses by $453,000. This shows that the organization has had considerable growth over the past three years. One thing to note is that ECEED has noted that each of the three buildings that the own have increased at 5% each year for the liabilities. This has had an impact on the assets each year. ECCED has collected much of their funding from the disability programming fees, development fees, and their school program. The disability program fees accounts for 28.78% of the revenue; the school program income accounts for 25.18% of the revenue; and the development fees accounts for 17.99% of the revenue. The largest expense for ECEED is the employees’ salaries. It takes 68.37% of the expenses. ECEED also has large balances on the real estate notes. This keeps their long-term liabilities high, which eliminates a lot of the room for net profit. When you look at the overall health of ECEED, there is room for improvement. As one looks at the financial statements of a nonprofit, they will see that an organization’s assets will be greater than their liabilities. You will also see that the net assets will be large enough to allow the organization to achieve their goals in the long-term (Scarano, 2022). ECEED does not show this and their financial position is not great in the long-term. The liquid assets are sufficient enough to cover their expenses at the moment, however, the real estate notes will continue to be an issue unless ECEED is able to increase revenue drastically. Even though they have been able to increase their net profit margins, it will be risky if they cannot increase the net assets further.

3 It is recommended to increase the revenues by at least 3% over the next five years to be able to stay ahead of the expenses. There will need to be more done though. here needs to be more fundraising done on the part of ECEED. They cannot always guarantee grants and donations from the community. Fundraising will do two things for the organization. This will allow the organization to raise the money to have a larger profit margin, which will allow them to stay ahead of the increase in expenses over the course of the next five years. It will also allow for great publicity and marketing. This will allow them to be able to get more donations from the local community and the large corporations in the area. If they were to do this, then they can stay ahead of the expenses and possibly expand programing in the future. ECCED will need a strong fundraising plan going into the next fiscal year. ECCED has been able to cut their expenses by 31.61% over the past 3 years, the future of the organization depends on them to increase the revenues each year to be able to cover all expenses and grow the organization. It is important to continue to receive individual contributions. ECCED can do this by adding the option for individuals to donate through the ECCED website. They can also do this by peer-to-peer fundraising. ECCED also needs to increase the corporate donations. They can do this by incorporating a corporate sponsorship program. In a report that analyzed over 128 million households, 600,000 nonprofits, and 80,000 foundations by Cooke and Alfred Group (2020), more than 69% of charitable donations made were individual contributions, 17% were foundations support, 10% were bequests, and 5% were corporate donations. Looking at the financial statements for ECCED, the contributions from individuals, foundations, corporations and the Board of Directors are only 12.96% of the total revenue with the Board of Directors contributing 2.16% of the total revenue and individuals, foundations, and corporations contributing 3.6% of the total revenue. `

4 When it comes to the individual contributions program, ECCED can target high school and college aged students to hold peer-to-peer campaigns. Many schools have a community service requirement for students to graduate and have families and friends that they can solicit donations from. This makes them the ideal candidates to help run these types of fundraisers. Students can receive 5 hours of community service hours and each student have a minimum goal of $1,000. If the organization can get 20 students to participate are various points in the year, ECCED could see a 40% increase in the individual contributions alone. This program can help contribute to the organization growth because as the program grows, not only will there be an increase in the revenue, but there will also be an increase in the community awareness as well. This is important for all local organizations. New donors are also individuals that ECCED can ask to help with the various volunteer activities that the organization has throughout the year. Because ECCED is not currently soliciting donations on the organization’s website, the organization is missing out on potential revenue through those who hear about the organization through our social media channels and word of mouth. The easier it is for someone to donate to an organization, the more likely they will make donations. According to Double the Donation (2024), revenue from one time donations decreased by 12% in 2022 but monthly donations increased by 11% and they accounted for 28% of all donations given online. Those are the kinds of donations ECCED wants to see. If monthly or quarterly donations from individuals can be obtained, as well as the one time donations, then ECCED will see an increase in the revenue for ECCED. When looking at corporate revenue streams, there is an opportunity to increase the reach with a corporate sponsorship program. The organization can create a standard set of four opportunities within each of the three programs that the organization runs. These opportunities

5 will highlight the attributes that corporate liaisons are interested in. Examples include the STEM programs that are available at the charter school, sustainability at the various housing programs that are run, and possible opportunities for those with developmental disabilities to be able to advance in society. Corporations can sponsor classrooms, events, volunteer days, or anything that they can think of in conjunction with ECCED depending on their level of commitment to the sponsorship. The more hands on, the bigger the benefit for both ECCED and the corporation. ECCED. Corporations will want to benefit from the sponsorship as well. By providing social media posts, press releases, and other recognition about their sponsorship, they will get their name out into the community and people will be trusting of them because they will know that they are doing good work in the community. The packages that ECCED offers should start at $5,000 and there needs to be a goal of 5 new sponsors. This would generate a 50% increase in the total revenue. Corporations that are eager to sponsor the organizations target areas are likely to see a high success rate. With both of these programs running there will be $45,000 more in revenue coming in a single year. These programs can grow over the years which can lead to even more revenue coming in each year. The more ECCED works with the community and the corporations within it, the better the chance of the organization growing and succeeding in the years to come. The governance of ECCED is important for the organization going forward. The Board of Directors govern the organization through oversight, large-scale planning, as well as the overall direction of the nonprofit (Kindful, n.d.). ECCED has a strong governance structure already in place. There is always to improve any structure already in place. This will allow the organization to grow. The Board of Directors is very diverse through all the experiences that they bring to the Board. They come from a variety of backgrounds that will bring experience and knowledge that

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