Category: Charity

Business Proposal and Research Plan

The UAE society has made great contributions towards the support of charity and humanitarian work at local, regional, and international levels (Walker, 2007). Over the last few decades, the country’s rulers have established several charitable organizations. The Emiratis believe that charity and volunteerism enhances social solidarity and social development.

The government promotes charity work and implements legislations regulating the service to the public (Walsh, 2008). Major charitable work in the UAE is carried out in a conventional manner rather than through online auctioning. Online auctioning has proven to be the best approach for any nonprofit organization aiming to survive and expand its operations in these tough economic times.

An online auction is created purposely for nonprofit companies such charity organizations and learning institutions. This system allows their administrators to access the necessary tools required in planning, building, publish and control an online action.

Problem

As stated above, major charitable work in the UAE is carried out in a conventional manner. In western countries, charitable work has evolved and improved over time. In these countries, charity is subject to social, technological, and economic factors unlike in the UAE. As such, charity-funding organizations have diversified and enhanced their efficiency.

The internet has revolutionized how charity work is being carried out. Internet auctions have increased the organizations’ revenue. With live auctions and online auctions for charity work, everyone can be able to participate.

These ideas are worth studying because they will increase the revenues earned by charity organization and ensure that more needy people benefit from the program. The findings obtained from this study may be used in improving the charity work in the future.

Literature review

Charity organizations are always on the lookout for new ideas that will improve their efficiency. In the past few years, online auction has enabled more of these organizations to reach out to new donors and reduce on their operation cost. Activities on online auction are similar to the activities carried on contemporary auctions. However, with online auction all the activities are carried out via the internet (Elliott, 2000).

Instead of potential buyers travelling to the auctioning point, online auction offers them an opportunity to log into their website and place their bids for the items being sold. On the web, they can access the pictures of the items.

Through a tool called proxy bidding, a potential buyer is able to enter his or her bidding price. After several bids are placed on an item, the highest bid will be selected for consideration. Whenever a bidder is out-bided, an email notification is sent to her or him. Through this, he or she is allowed to enter another bid.

Members of the group and their role

Four students will undertake this project. Listed below are the individual responsibilities towards the achievement of the project objectives.

Student 1

Student no 1 will be is mandated to plan the overall approach. The student will determine the size of our action, and strategize how the charity work will fit together with other fundraising strategies.

Student 2

Student 2 will acquire the items to be auctioned. Considered that successful auction necessitates competitive items, the student will be required to find these items by networking with potential customers, donors and other relevant stakeholders.

Student 3

Student 3 will reach out for the participants. The student will be required to market the program through emails and social media. Notably, the success of the project heavily relies on the student because marketing is a key facet of online auctioning.

Student 4

Student number 4 will search and acquire online auction software. Currently, there are several companies offering online auction software. The student will search for the most appropriate software that will ensure that the project attains its objectives.

Objectives

In the project, we aim to integrate new ideas in charity auctions in the UAE in a different way to raise millions for an aid organization. Aid organizations are increasingly looking at new ways of making money, and there is a variety of alternative funding streams being used as a growing source of finance.

With respect to our project, new, expensive, prestigious, and the first cars in the UAE will enter the live auction to be auctioned to the highest bidder. All the prestigious car dealers participating in the charity auction will receive the appreciation of supporting charitable work in the UAE from the society and government. Automobiles will be from the donors.

We will collaborate with some restoration centers to renovate the vehicles free of charge. Similarly, donors can contribute cash and that will used to buy another property to be auctioned.

As a gift, the participants will be offered a chance to enjoy an exclusive visit with leaders in the UAE, actors, musicians, athletes. We offer everyone the opportunity to participate, and all it takes is an AED50 or AED 100 donation. In all the transactions, Government fees will be exempted from all transactions.

As stated above, if live auction and online auction is integrated into charity work, everyone will be given a chance to participate in this noble work. Therefore, the chief aim of our business is to improve the performance of charity work by incorporating live action and online action in the work.

As a substitute to offering once-in-a-lifetime chances for the wealthy donors to contribute through live action, online auction will allow everyone regardless of his or her social class to donate. Through this approach, we aim at changing how charitable actions are carried out in the UAE.

This project would be very useful to the community. Because the project aims at improving the efficiency of charitable works, the community will benefit immensely as the amount of donors increase. Therefore, we are requesting financiers to support our project because through it the community will benefit.

Data collection methods

Data collection methods are an important aspect of the research. For this study, the data method will be field research. This method entails acquiring data from secure and reliable government sources, face-to-face interviewing, and questionnaire. Existing online auction organizations will provide the researchers with crucial information such as the present and the past financial statements.

Through this, we will be able to determine the feasibility of our project. The face-to-face interview will require a participant to question auction managers in person to collect their personal views. During the interview, the contributors will be asked to detail management and production orientation perspectives.

Equally, questionnaires will be used to collect information from the participants. Questionnaires will be appropriate because some participants might not be comfortable to detail some of information during a face-to-face interview. Reanalysis of related research will also be a utilized method of data collection.

Challenges

During our research, ethical considerations related to privacy and confidentiality will be upheld. However, if issues related to research ethics arise research leaders should follow these certain steps to address them. They should identify the issues and the parties, identify the options, and consider the consequences, analyze options, and act with commitment.

Analysis

After the data are collected from the field, they will be compiled into an excel spreadsheet. Later SSPS software will be used to make tables, charts, or distribution plots. Thereafter, the data will be analyzed for accuracy. From these results we can be able to project on our future performance.

Similarly, through the data we can be able to identify the potential challenges and how to overcome them. Through the initiatives, we will not only be able to ascertain the success of online auction in the UAE, but also come up with a feasible plan for our project.

Schedule

The Project will be completed probably by June of 2014. By mid 2014 with the research portion will be in its final stages. By January 2014, research and preliminary draft will be completed. A final draft will be completed the summer of 2014. We will meet at the end of every week to discuss about the progress of the project. Below is the comprehensive time schedule for the project.

Budget

External financiers will fund the research. It is assumed the major expenses will be towards personnel, fare, and tools used in data collection. It is estimated that the project will cost $ 2000.

References

Elliott, A. C. (2000). Getting started in internet auctions. New York: Wiley.

Walker, J. (2007). Oman, UAE & Arabian Peninsula (2nd ed.). Footscray, Vic.: Lonely Planet.

Walsh, J. (2008). UAE. London: Kuperard.

Abstract

1Million Women is an Australian charity whose current number of members is about 165, 220. This promotional strategy project covers 1Million Women. Inspiration for the project arises from of 1Million Women being and organization and a movement that is already causing change in climate change matters, an area that many people do not know and would like to find out how they can contribute to the change.

The problem of 1Million Women is that its target population needs to have an updated story whenever they are interacting with any media channel of the 1Million Women. This should also make the organisation vibrant. The membership target for the campaign is 190, 220 to 195, 220 members in 6 months. The other target is to increase donors by relying on public relations, social media, and advertising while other channels playing secondary roles in the integrated marketing communications strategy.

Introduction

1Million Women is an Australian charity that boasts a growing membership that currently numbers 165,220 (1Million Women, 2015). The organisation terms itself as a movement for women and girls. Its activities revolve around the global fight against climate change. In its capacity, 1Million Women takes practical actions in the everyday lives of people as its preferred way of combating climate change. Natalie Isaacs is the founder of the organization. She attributes the organization’s impact to the collective action of women and girls, irrespective of their position to take measures that reduce the overall footprint of their lives on the planet (1Million Women, 2015).

This project focuses on the 1Million Women because the organisation provides room for all kinds of women to work with individuals and groups to create solutions that will influence other women and everyone in society, especially in Australia. Women and girls are free to join and contribute to the organization in any way that they like. There is no discrimination based on age or ability. As long as a woman desires to take part in combating climate change, the organisation is there to provide her with the appropriate channel for doing so in a constructive and socially sustainable way (1Million Women, 2015).

Social Media Strategies

This integrated marketing communication projects adapts its strategy to the concept of purple cows. The concept refers to the idea of having a very striking realisation about a piece of information or action, which is not normal but it is very interesting and worthy of speaking about.

In marketing, it refers to the strategies that an organisation or individual will use to make their value proposition and their brand literally stands out the way a purple cow would in an ordinary society (Bailey, 2011). This project is going to apply the same strategy to come up with an integrated marketing communications plan for 1Million Women that increases the organisation’s overall membership and donors to increase its impact to the society significantly.

Media reviews show that people are used to traditional forms of integrated marketing channels and that they are likely to dismiss yet another marketing message coming as noise. Therefore, the important thing that this promotional strategy plan will be doing is being persistent, until it cannot be ignored. At the same time, the campaign will be interesting on social media (Belch, Belch, Kerr, & Powell, 2014). Moreover, it will be very simple to opt it such that the target audience will find it hard to ignore it. With this strategy, this project hopes to achieve an objective of increasing the membership of 1Million Women significantly.

Rationale for the project

This project’s interest in the 1Million Women comes from the idea of a movement that is making a change in an area that many people are not yet aware of how they can contribute to change (1Million Women, 2015). Unlike typical charities that give food and shelter or money to the poor, the work of this organisation is to prevent catastrophic consequences of climate change and to benefit everyone in society.

At the same time, it provides a channel for empowering every woman in society. It uses a subtle and very powerful approach to address gender empowerment and it makes women the stewards of a healthier, safer and accommodating climate with a good environment, which is home for everyone. The biggest hindrance for the organisation is its limited membership, which curtails its potential influence in society. Therefore, membership growth will make it more relevant and increase its opportunities for getting sufficient funding to coordinate efforts in stopping climate change.

Profile of the campaign audience

The campaign audiences will be women and girls. The age range will be from 15 to 55 years, which represents the most active group to consider joining the organisation (1Million Women, 2015). Girls who are younger than 15 years will need the supervision of their guides when they are signing up to become members of the organisation. They may not be aware of their personal details relevant for their identification. On the other hand, women older than 55 are still capable of joining the organisation; however, their preferences and appeal may differ from that of women younger than that age.

Therefore, the target age will remain 15 to 55 years old for the campaign message to stay congruent. The campaign audience has access to the Internet, newspapers and has at least 30 minutes in a day that can be used to interact with social media. It is sufficiently educated to make sense of climate change and the basis for making the world a better place. The audience is also empathetic to the plight of people negatively affected by increased mindless consumerism in a globalised world.

Audience perception/problem

Currently, the organisation is making progress towards its goals. However, there is a mismatch of its overall campaign process. Different strategies exist as isolated tools of communication. For example, there is no deep integration of what happens on the official website with the Twitter, Facebook, and YouTube channels. The audiences need to have an updated story whenever they are interacting with any media channel of 1Million Women. This way, they will be able to transition smoothly from one media to another (Boundless, 2014).

They will also be able to trace their progress and build the required incentive to sign up as members and proceed to make relevant word-of-mouth sharing contribution about the charity organisation. Without sufficient integration, many of the target audience and current members end up losing interest, as they do not see the continuation of their engagement after joining. The audience likely develops a misguided thought that sees the organisation as a static one, with no real appeal for everyday engagement as it claims. The role of the campaign and future strategies is to correct this misconception.

Campaign objective

The first campaign objective is to increase the membership of 1Million Women by at least 25,000 to 30,000 members who will have signed up on the official organisation’s website. The second campaign objective is to increase the number of donors to 1Million Women. The current membership number is visible on the main site. The new target will be 190, 220 to 195, 220 members.

A woman’s gender identity is constructed outside herself. It is something that she learns to accept and love as she grows. Beyond the gender identity, women are individuals who have additional identities developed with opportunities that face them as individuals or communities (Gilchrist, Bowles, & Wetherell, 2010). For example, there is the Australian woman’s identity, and any other association that a woman has will become part of the characteristic of her identity.

The objective of the 1Million Women IMC campaign is to provide an additional identity for the women of Australia, and use that new identity to champion for actions that tackle the social, environmental and the economic problem of climate change. The existence of multiple identities implies that everyone can be involved in different ways in groups and collective activities. Therefore, there is no limit to the ways that women can contribute to the collective action of 1Million Women.

This campaign aims to realise the additional ways that are not yet in use. It shall do that by first increasing the number of participants in the organisation and renewing the commitment of already registered members to enhance the vibrancy of the organisation. The campaign is going to rely on the commonality aspect of being a woman, belonging to a country, and being concerned about the welfare of the current society and future generations. The donations to the organization should also increase once the members increase and the commitment of the existing members also improves.

Campaign theme or “Big Idea”

The big idea is that signing up for 1Million Women is the best thing, which women can do to support the movement. It is easy and fast. It should take very little effort. It will be satisfactory to do any little thing that reduces the problem of climate change after joining. Few things can include using renewable sources of energy, spreading the news about sustainable practices for home and work, and sharing content on Facebook and Twitter about 1Million Women.

Members and would-be members are free to say anything about the various ways they can help the movement. They are also free to share content about the organisation or their stories with the organisation. Highlighting members’ stories will be the main agenda, as it will help in bringing out the big idea that joining other people with a similar agenda of making the world sustainable is the best way to give back to society (Cramer, 2014).

Therefore, the campaign will use logical and emotional appeals to be meaningful to the ordinary lives of the target audience. The overall message will be “Join the Movement, Become 1Million Women & Girls Fighting Climate Change.”

Marketing communications strategy and tools

The strategy is to come up with a product for the 1Million Women that will be unique and attractive to its target audience. The second step of the approach is to develop the basis for the integrated communication. The expectation here is that the strategy will find the main motivators that are willing to go out of their way to ensure that the marketing message transmits to all the social networks, both offline and online, to reach the highest number of people in the shortest time possible.

The third step, which also works as a motivation for the strategy, is to come up with a remarkable idea that is being promoted together with the underlying reasons for the campaign. This will ensure that it will be very compelling and easy for people who interact with the campaign message to opt in and become brand ambassadors for 1Million Women (Colbert, 2009).

Primary tools

Internet – 40% of the budget

The Internet strategy is going to use a collection of social media tools and content marketing approaches. The tools identified for the campaign are Facebook, Twitter, Blogs, Instagram, Chat applications, Vimeo, and YouTube. Content marketing will involve press releases, articles, and editorial pieces published on strategic websites on the Internet, with a significant outreach to the target population (Bailey, 2011).

There will be a feedback loop along all the messages pushed through the campaign. The campaign will encourage people who have interacted with the organisation to share their experience. The campaign will capture this feedback in various social channels like YouTube, Facebook, Twitter, and other social network sites. The critical feedback collected will revolve around the identity of 1Milloin Women, the perception that people have about it, how the organisation works, and what is in it for anyone willing to participate.

Linking the responses on the various Internet channels will be a way of stimulating the conversation further. Consequently, more people will get to know about the involvement of other people. The campaign wants to create a group mentality. Those who are within the group want to keep discussing features of the group while those who are outside the group keep on interacting with the media and conversation content of the group that they find it irresistible not to join or at least seek to find out more about the group.

Workers employed in the campaign will continue following up with any interest that people express. The Internet campaign will be responsive to the feedback and the reports that various channels provide. There will be a persistent monitoring of conversation on the popular social sites encouraging people to keep engaging with the 1Million Women brand.

Twitter will be the first launch pad for giving people ideas about 1Million Women. On Twitter, the goal is to come up with sufficient comments and information updates that match the existing positive trends of the day. This way, there will be a high chance of people who are in touch with the trending topics on Twitter will be able to find out about 1Million Women.

Once traction builds on Twitter, there will be the use of tweets to create meaningful content on the Facebook page of the organisation. At the same time, there will be posts on Facebook regarding any interesting thing about the campaign covered in offline media and on the Internet prior and during the campaign.

Once women take up any action in relation to the activities of 1Million Women, the campaign will be asking them to share whatever they did with others through tweets, Facebook posts, Pinterest mentions and online videos. They will be free to post on the organisation’s Facebook page, leave a comment on the campaign blog, put a picture on Instagram, and retweet or reply to the 1Million Women Twitter handle. The idea here is to transform a personal conversation between two or more people and the 1Million Women brand into a public relations matter for the organisation that will act as social proof for other target women to feel the need to be part of something great in their society (Cova, Pace, & Park, 2007).

Website analytics will also help to show the number of visitors to the website during the campaign period. Many social media tools like Facebook and Twitter will provide engagement analytic tools that help to show the popularity of a message or an update. Thus, throughout the campaign, it will be possible to see exactly how many people are being reached (Vasquez & Escamilla, 2014). The following are illustrations of the potential uses of Facebook as a social media channel and messages that will help drive up recruitment.

Advertising – 30% of the budget

The main form of advertising will be newspapers of all kinds, including tabloids because of high readership. Meanwhile, Internet advertising will be used less because social media marketing will be taking place. The ratio of print to internet advertising will be 7 to 3 respectively. Advertising will rely on posters, newspapers and other print channels as the main avenues for reaching out to the target audience. In addition, the copy message of advertising will be a simple fact with an emotional appeal.

Ads will then have a tag line urging people to learn more about 1Million Women and join 1Million Women. They will include the 1Million Women logo and a compelling background image of a person. The image used will reflect the message that the particular ad runs. The creative team will come up with different ideas and test them in the weeks of the campaign. The messages that appear to correspond well with the target audience will be amplified in subsequent ad campaign phases in the respective media (Wang, Hernandez, Minor, & Wei, 2012). The print ad will also match the online advertising.

Online advertising, which will be used less than the print ads, will incorporate smart options that the internet medium provides. For example, users will be able to click on ads and go directly to the sign-up page on the organisation’s website. They may also be directed to social network pages where they can contribute their stories or share other stories that are carried in the pages (Belch et al., 2014). The main message will be to have the target audience act in any way that they see will contribute to the growth of 1Million Women’s membership and impact in society. With Internet advertising, the campaign will be able to show how many people are responding to ads on average and the actions they are taking after responding to the ads (Birkner, 2015).

Public relations – 15% of the budget

Another cornerstone of the campaign will be public relations, where the message will linger on for longer among the target audience and give people adequate time to contemplate and take action. Public relations strategies will shape the conversations about the 1Million Women. The more people talk about the organisation, the higher its relevancy to the community will be.

Therefore, the aim of the campaign will be to use public relations to establish connections that unite women, inspire them to be part of the community that does something about climate change, and help them grow in their individual and group capacities (Caslione, 2003). The goal of the public relations campaign will be to influence the target audience’s opinion.

The 1Million Women organisation will seek to associate itself with other entities that are doing a positive thing about stopping or managing climate change. It will identify with other noble causes associated with its target population. The identification with what women and girls are doing to better their lives in the context of making the earth a sustainable place to live in will generate brand loyalty around the organisation cause of being a positive influence of stopping climate change.

For example, being vocal through new and traditional media or using free opportunities for publicity to drive its carbon challenge agenda for women and girls to take up, are public relations efforts that will allow 1Million Women to position its narrative well and gain brand exposure (Colbert, 2009).

Local media is expected to cover public engagements of 1Million Women campaigns and increase awareness using the prime time news. This will create sufficient momentum for word-of-mouth sharing through various social media platforms. The organisation will use the opportunity to increase its engagement by increasing the integration of different communication channels to ensure that the common message of increasing membership to achieve its goal persists throughout any engagement that it has with its target audience.

Secondary Tools

Sales promotion – 5% of the budget

Sales promotion in the case of 1Million Women will be to increase the number of signups. Therefore, for this campaign, the sales promotion will have strategic placement of the sign up booths in strategic places in most shopping malls and other public gathering events across the country. There will be a push strategy. It will focus on organisations that agree to collaborate with 1Million Women. This will ensure that as many people are exposed to the sign up booths that will be set up on their premises.

The sales push will also rely on sensitisation that will be created through advertisements and online campaigns on social media (Belch et al., 2014). Therefore, many people will have interacted with the message and be acting on reinforcements. This strategy relies on the fact that consumers do not make a snap judgement. Instead, they work slowly as they increase their knowledge about a product or a feature. Here, they will have interacted with various push efforts by the 1Million Women sales promotion team in different public spaces and outlets around the country. If they make up their minds to join 1Million Women, they will have an opportunity to do so at the sign up booths.

Willing organisations may promote the membership recruitment drive by providing branded merchandise such as T-shirts. People will be given the merchandise when they agree to contribute to the campaign by signing up or participating in the creation of other promotion material like videos showing the ways that the 1Million Women organisation can affect the lives of Australians positively.

Direct Marketing – 5% of budget

Direct marketing is another important strategy that will help the IMC campaign succeed in achieving its objective. For 1Million Women, the approach will provide legitimacy and serve as the email and social media engagement foundation. Therefore, the actual Internet strategies that have been described in this plan and their underlying strategies will be an extension of the direct marketing campaign. There will be a need to use letters through direct mails, given that the campaign will target women of all ages and their friends and families (Doole & Lowe, 2012).

Personal Selling – 5% of the budget

Campaign officials appointed by the organisation during the campaign period to increase membership will do personal selling. The membership recruiters will have portable devices and leaflets to hand out to people to inform them about the recruitment services. They will supplement the work of sign up booths, which will be operating on a self-care basis. The recruiters will take details of new members and register them on the 1Million Women website. They will furnish the new members with their login details on the spot. In addition, they will provide members with the bookmarks and help them set up their mobile devices for future engagement.

These devices may include smartphones and tablets. In some cases, they will also demonstrate how people can interact with the organisation through social media and other online or offline channels. In this regard, the campaign will restrict the personal selling approach to face-to-face communication. The importance of personal selling to the campaign will be to give back information about the sign-up process.

Given that they will be in face-to-face communication with members, the recruiters will also provide the right information about the profile of the campaign audience and the best ways of adjusting strategies to respond to any emerging issues. The recruiters will represent the organisation before the new members. They will also represent the new members to the organisation (Balmer & Gray, 2003).

Support Media – 10% of the budget

The purpose of support media will be to create awareness, get attention, and enhance the retention of the campaign so that the target audience gets compelling reasons to sign up as new members of the 1Million Women organisation. Support media will include the use of mobile billboards that are mounted on trucks, vans, and trailers. The organisation will use existing service providers to run its campaign. The choice of mobile trucks will help the organisation reach many people in a short time, given that the targeted audience will be the same as the one being served by the personal selling strategy and the sales promotion.

Media Schedule

The campaign will run for 6 months and it will be scheduled in the following manner.

Campaign Measurement

The metrics for the campaign success will be the achievement of the target recruitment number of 190, 220 to 195,220 members. In addition, the amount of publicity that will have been created, the level of engagement that the target audience will show, and the increase in the number of donations to the organisation will be other parameters measured. To measure publicity, the team will consider the raw numbers presented by different channels, such as social media, by looking for the indications of engagement, which include message sharing, updates mentioning 1Million Women, and media uploaded by users.

The number of visitors to the various social media channels, the number of interactions that recruiters will have during the campaign, and the number of visitors to the official website will also be measures used to evaluate the success of the campaign. Public relations achievements will be measured by the extent of content marketing, press releases, and news coverage that the campaign will gain in online and offline media.

Conclusion

Although there are tens of charities that do major programs in Australia, very few have a cause that can influence the lives of every Australian concurrently. At the same time, knowledge of climate change is prevalent, but efforts to contain the phenomenon are usually left to government policies and companies’ corporate social responsibility efforts.

The proposed campaign is going to give women and girls an excellent opportunity for empowerment to make meaningful change in society without having to fight the male hegemony. It will provide a social basis for supporting a cause, improving one life or other people’s life, and overall serve as a channel for personal leadership in society. The intention of the campaign it to meet its objective of increasing recruitment and exposing more women in the fight against climate change.

References

1Million Women. (2015). Web.

Bailey, M. (2011). Internet marketing: An hour a day. Indianapolis, IN: Wiley Publishing.

Balmer, J. M., & Gray, E. R. (2003). Corporate brands: What are they? What of them? European Journal of Marketing, 37(7/8), 972-997.

Belch, G., Belch, M., Kerr, G., & Powell, I. (2014). Advertising and promotion: An integrated marketing communication perspective (3rd. ed.). Sydney, Australia: McGraw-Hill Australia.

Birkner, C. (2015). Ad messaging efficacy differs based on country’s GDP, study shows. America Marketing Association.

Boundless. (2014). Introduction to integrated marketing communications. Boundless.

Caslione, J. A. (2003). Globalization demands new marketing skills. Marketing News, 37(14), 7-8.

Colbert, F. (2009). Beyond branding: Contemporary marketing challenges for arts organizations. International Journal of Arts Management, 12(1), 14-20.

Cova, B., Pace, S., & Park, D. J. (2007). Global brand communities across borders: The Warhammer case. International Marketing Review, 24(3), 313- 329.

Cramer, T. (2014). Applying the secrets of gamification to your digital marketing strategy. Web.

Doole, I., & Lowe, R. (2012). International marketing strategy. Stamford, UK: Cengage Learning.

Gilchrist, A., Bowles, M., & Wetherell, M. (2010). Identities and social action: Connecting communities for a change. London, UK: Community Development Foundation.

Vasquez, G. A., & Escamilla, E. M. (2014). Best practice in the use of social networks marketing strategy as in SMEs. Procedia – Social and Behavioral Sciences, 148(25), 533-542.

Wang, Y. J., Hernandez, M. D., Minor, M. S., & Wei, J. (2012). Superstitious beliefs in consumer evaluation of brand logos: Implications for corporate branding strategy. European Journal of Marketing, 46(5), 712-732.

Internal research

National organization

The Ronald McDonald Charity House is organized into chapters that help communities across the globe in terms of shelter, funds, scholarships, grants, and other charity needs. The organization consists of a board of directors and chapter leaders who have the role of managing any logistical support and requests. The charity center exists in most of the states within the US and other 58 countries across the world. This paper will concentrate on the Connecticut chapter.

Connecticut chapter

The Connecticut chapter is one of the largest among other chapters of the Ronald McDonald Charity House. The chapter is based in New Haven.

Internal organization

The Connecticut chapter has 78 employees and more than 2,000 volunteers across the New Haven region. Most of the volunteers are young people who participate in community activities (Ronald McDonald House Charities of Connecticut par. 7).

Programs

The chapter offers programs such as grants, scholarships, and housing. The chapter also offers special programs such as the local hero award, which targets talented teachers within Connecticut (Ronald McDonald House Charities of Connecticut par. 7).

Events

The Connecticut chapter is associated with several annual events that are aimed at empowering communities. The annual local hero award is an event which occurs after every twelve months and has a large following among the young adults and education professionals.

Budgeting issues

Most the events and sponsorships are planned within the annual budget. During the process of budgeting, priorities are addressed depending on their urgency and availability of funds. Despite heavy support, this chapter has not donated very much to the surrounding communities.

Media tactics

There is need to establish an effective communication tactics to address the current problems such as little publicity and low donation among others.

Search engine optimization

The Connecticut chapter may use the internet in the form of search engine optimization. This form of media targets the middle aged audience who has access to the internet.Search engine optimization for the Ronald McDonald Charity House website can be achieved through installing plugins that possess extra features such as page navigation, thumbnail, and customized page numbers.

Specifically, this proposed system in Google will consist of a multi tab page that will serve different areas and services to online customers (Jin, Suh, and Donavan 48). Thus, constant blogging of the website and recruiting other independent bloggers will give the Ronald McDonald Charity House website a competitive advantage in marketing its products.

Social media

Social media, especially Google, Linkerdin, and Twitter have gained popularity among charity organizations and individuals who use these sites as interaction modules to share experiences and exchange ideas. In the charity industry, social media has penetrated the communication environment and currently commands a large following among the users.

Reflectively, Google, Linkerdin, and Twitter are ideal tools for branding and building community following for the Ronald McDonald Charity House website. Through ‘likes’ and ‘tweets’, the donor base for the Ronald McDonald Charity House website will expand substantially over a short period of time (Jin, Suh, and Donavan 49).

To increase credibility and maintain professionalism, the current bomb internet channels, used by the Ronald McDonald Charity House website for reaching the consumers, should be tailored to encompass processes and features that flawlessly facilitate a healthy and lifetime relationship between the Connecticut chapter and its clients. This will create a long term loyalty among clients. This strategy may target the youths who frequent social media (Lutgen 23).

Works Cited

Jin, Hyun, Jaebeom Suh, and Todd Donavan. “Salient Effects of Publicity in Advertised Brand Recall and Recognition: The List-Strength Paradigm.” Journal of Advertising, 37.1(2008): 45-57. Print.

Lutgen, Sandvik. Destructive organizational communication: Processes, consequences, and constructive ways of organizing. New York, NY: Routledge, 2010. Print.

Ronald McDonald House Charities of Connecticut 2014, Special programs. Web.

Introduction

This paper is an instructional guide, which is prepared with the aim of being presented to the board of the charity organization. The organization under investigation includes older adult people, who want to raise money for charity donations and supporting local artistry by selling handmade crafts and some other related goods via Internet.

Objectives

The purpose of this instructional guide is to provide the charity organization’s board with the real-life examples of effective usage of Internet with the aim of achieving the objectives set by the members. The most significant goal of the guide is to determine the websites, which are easy to use and access for those people, who do not have strong skills in using computers and need a lot of time to learn new applications. In other words, the chosen websites should demonstrate that they comply with the primary requirements of the charity organization’s members and are beneficial for selling more handmade crafts and other goods.

Materials – Determining Related Websites

The idea behind the instructional guide is to choose several websites often used for the retail purposes and conduct their analysis on the basis of studying the features, which are crucial for the target users. The proposed e-commerce retailers might include Amazon, Etsy, eBay, and others. Other websites such as social networks or video-sharing websites will not be proposed because, first, sometimes it takes a lot of time to obtain necessary skills to use them and, second, using them for the determined objectives is intricate.

Of course, video-sharing websites like YouTube have proved to be effective for increasing sales because demonstrating the goods via video clips is more attractive if compared to photos and product description, but the skills and knowledge of the target sellers should be the foremost priority (Robertson, 2011). Social networks such as Facebook, Twitter, and others, which are actively used for marketing purposes, will also be ignored due to the complexity of working with them. Nevertheless, search engines such as Yahoo and Google are recommended.

Procedures – Guidelines for Evaluating the Websites

The procedures section is made up of two subsections – guidelines for conducting instructional activities and necessary resources. The first subsection will focus on the features of the websites themselves while the second one will provide the requirements to resources and skills. The motivation for the similar division is to mention every detail, which might be significant for reaching the established objectives of the charity organization members.

Designing the Conduct of Instructional Activities

While choosing the websites, it is recommended to keep in mind several features. First of all, it is better to use the popular website. Because the primary objective of the target people is to sell their goods and donate money to charity, they are not interested in promotion and marketing because it is expensive. That is why, the first feature for the website analysis is website popularity, i.e. how many people know about the website, how to use it, and what is the number of its everyday visitors.

The second feature is the imbedded search tool. This detail might seem senseless, but, in fact, it is always easier to use the search tool than to browse the categories. In addition to it, having search boxes attracts more customers if compared to category listings (Testing ideas for e-commerce and retail sites, 2016).

Next, it is advised to choose the websites, which offer similar goods. This characteristic is two-sided. On one hand, it implies higher levels of competition. At the same time, because we speak of handcrafted products, their uniqueness will help solve the issue of competitors. On the other hand, people should be informed that this particular website offers the goods they need. So, if the organization is the only provider in the category of handcrafted goods, it might take some time for the potential customers to discover it.

The next feature for assessing the websites is whether they offer the possibility to create free accounts for retailers or particular discounts for the elderly users or charity purposes. The motivation for making an emphasis on the necessity of this feature is the same like in the case with choosing popular websites – it is always better to donate more money to charity than spend on premium accounts. One more characteristic is intuitive website design, which will make the process of operation easier. The justification for attracting attention to it is the focus on the level of skills and technological knowledge of those, who will use the website for commercial purposes.

Another significant feature is offering payment instruments. Some websites have an option of building payment information into the users’ accounts. It makes the whole process of selling easier and faster and it adding this information usually does not require strong knowledge in browsing the Internet and using technologies. However, offering this service requires guaranteeing user security systems as well as being aware of their significance.

The simplest steps to guarantee data security is to use secure connection, make up more reliable passwords, and choose e-commerce platforms knows as safe ones (Schiff, 2013). This feature is a combination of both education and choice. Finally, some retail websites operate not only as e-commerce platforms but also offer deliveries services, which are usually cheaper than using conventional postal deliveries. So, choosing one of them might be a beneficial option.

Necessary Resources

Resources necessary for using the determined websites are minimal. They include computers (laptops, tablets, etc.) and access to the Internet as well as the goods, which would be sold, themselves. Except for these resources, some elementary skills in using the newest technologies are required. Some of them are knowledge of the simplest Internet search tools with the aim of finding the related websites, checking e-mail box and sending e-mails in order to communicate with the customers and track orders, working with Internet browser applications to use the websites for the organization members’ established objectives (uploading images, making up orders, changing their statuses, updating stock availability, etc.), and communication skills.

Assessment – Guidelines for Evaluating the Websites Performance

Table 1. Guidelines for Evaluating Website Performance.

Responses for the Line Items

Ethical Considerations

Although the role of ethics in making choices during this paper was not crucial, it cannot be underestimated. First of all, the determined objectives are conducting business activities. So, business ethics were applied. The primary consideration was user data security because revealing personal information or hacker attacks are undoubtedly unethical. That is why the emphasis was made on different ways of protecting user data such as strengthening passwords, promoting the use of safe connection, and choosing safe websites. Of course, there were the easiest tools for improving data security, but they are still efficient. Not ignoring the issue believing that older members of society do not know how to use them would have been unethical, but this guide was an attempt to avoid this issue.

Another ethical consideration was drawing the line between the younger and older generations in the level of skills and knowledge. It is referred to as the digital divide (Koslowski & Hubig, 2004). In its very essence, it is unethical to point to it. However, because the initial stress was made on the fact that these people are interested in making money instead of learning new applications, it was ethical to provide them with the easiest ways to use the Internet for commercial purposes.

In addition to it, the digital divide was insignificant. Specific attention was paid to demonstrating all opportunities to use the Internet for boosting sales. Of course, stating that social networks or video-sharing websites are not recommended because they are intricate might seem unethical, but they are mentioned. So, very individual is free to choose whether he/she wants to study and use them or fall upon easier ways of doing business.

Justifying Design and Writing Decisions

This instructional guide was developed with the aim of demonstrating that there are numerous ideas for using the Internet for commercial and charity purposes. Special attention was paid to criteria for choosing e-commerce platforms and necessary skills and knowledge. This decision was motivated by the desire to provide the board with all necessary details, which might affect taking the further steps in the organizations’ development.

In addition to details mentioned above, the table of criteria and grades was presented. The justification for making the similar decision is the fact that the table presents all required information in short and could be used for conducting website analysis and choosing one, which would meet the organization’s needs the best.

As of the writing, the emphasis was made on real-life examples of e-commerce platforms as well as other websites, which could be used for achieving the determined purposes. The justification for mentioning Amazon, eBay, and Etsy is the fact that they are among the most popular online retail platforms (Monthly unique visitors to US retail websites 2015, 2016). Moreover, Amazon offers delivery services and works with various payment systems (Pride, Hughes, & Kapoor, 2015). The idea was to hint to analyze them, as they are extremely popular and safe.

Justifying the Logic for Compiling Sources

The logic behind compiling sources into an instructional guide was simple. Instead of providing pure instructions, it is always better to point to some facts. For example, what is the point in recalling user security without referring to the strategies for boosting it? Or why mention social networks without providing the examples of their effectiveness?

Moreover, necessary resources (skills and knowledge) were incorporated into the instructional guide. The justification for this decision was to show the organization the minimal requirements and point to possible gaps in meeting them as well as finding the solutions to this challenge.

Finally, including educational details such as user security information, the use social media, the necessity of search tools and other features was motivated by the desire to demonstrate that obtaining new knowledge and skills is not always complicated. Of course, it is time-consuming and requires a lot of effort, but the consequences will definitely be positive. The justification for making this statement is the fact that taking similar steps would increase the effectiveness of the team as well as attract new customer and, as the result, sell more handcrafted goods and earn more money supporting the local artistry. Furthermore, the aim was to stir the interest in obtaining new skills hinting that it is never too late to study.

References

Koslowski, P., & Hubig, C. (2004). Business ethics and the electronic economy. New York, NY: Springer.

Monthly unique visitors to US retail websites 2015. (2016). Web.

Pride, W. M., Hughes, R. J., & Kapoor. J. R. (2015). Foundations of business. Boston, MA: Cengage Learning.

Robertson, M. R. (2011). How to drive sales through YouTube – A reel, mighty video marketing case study. Web.

Schiff, J. L. (2013). 15 ways to protect your e-commerce site from hacking and fraud. Web.

Testing ideas for e-commerce and retail sites. (2016). Web.

Introduction

A charity organization is an essential element of a community since it allows supporting disadvantaged and vulnerable members of the population, at the same time increasing the extent of collaboration, social activity, and engagement among community members. Therefore, this charity, which was created to support children from different socioeconomic backgrounds and provide them with the resources necessary for education and well-being, is worth considering as an important part of the local community. Furthermore, given the significance of economic and social support for children that come from poor socioeconomic backgrounds, the organization under analysis should expand to embrace a wider range of children (Pratono & Tjahjono 2017). By promoting Children at Risk (CAR) as an institution that offers extensive support in different forms, ranging from educational resources to financial assistance, one will be able to manage some of the current concerns in London communities and increase the extent of social activism among citizens.

To ensure the expansion of the organization, a marketing campaign that raises awareness is due. In the process, the areas such as the development of brand identity, the analysis of potential population segments and their needs, and the promotion of effective communication will be considered. Moreover, one will have to design an appropriate strategy for the allocation of CAR’s resources to address possible financial risks that the organization is likely to sustain. Attracting potential investors and raising awareness regarding the needs of children from challenging socioeconomic backgrounds are the essential objectives that the plan described below will pursue.

Marketing: Definition and Key Steps

As both a field of research and a set of strategies for attracting target audiences to a particular product or service, marketing is a truly fascinating notion. The concept of marketing has several definitions, each allowing audiences to view the notion from a unique perspective and contextualize it. According to Gottfried and Pennavaria (2017, p. 111), marketing is an “ongoing communications exchange with customers in a way that educates, informs and builds relationships over time.” The focus on education is a critical aspect of marketing since it allows an organization to forecast and even control the levels of demand for a particular service to a certain extent. Therefore, introducing marketing principles into the framework of CAR will help one to encourage target audiences to recognize the problem of resources in disadvantaged communities. In the context of the target project, one will need to consider several goals, the key one being raising awareness among potential investors.

Segmentation, Targeting, and Positioning

Identifying and Attracting the Selected Segments

The process of market segmentation is rather complicated for charities due to the restrictions associated with the use and allocation of financial resources. Presently, the CAR targets the firms that donate to not-for-profit organizations and people that have a consistent source of income and, therefore, are capable to supply it with regular donations (monthly payments are currently the preferred option). For this reason, the strategy that will allow attracting the attention of potential financial supporters of the firm should target the described segments of the local market.

The described segments can be seen as rather broad categories since the identified age group and economic characteristics apply to a vast variety of people and organizations. However, appealing to the described segments will become [possible as soon as CAR selects the approach that will make the organization easily distinguishable from the rest of the charity companies that operate in the designated area. For this purpose, CAR may need to focus on developing the competitive advantage that will make it memorable and distinctively different from similar organizations (Jin 2017). For example, CAR may need to consider focusing on the application of innovative approaches in its social work and the use of counseling techniques as the methods of assisting target populations.

In addition, the selected segments can be attracted by appealing to their sense of social responsibility by emphasizing the importance of assisting children from disadvantaged communities. However, it should be noted that the described approach toward attracting target segments of the London population may be regarded as manipulative, which is likely to divert a certain percentage of target audiences from CAR. Thus, the use of the imagery that will invoke sentimental feelings and the sense of guilt should not be overused; instead, GAR should incorporate only small elements thereof carefully into its promotion campaign to establish the legitimacy of its cause.,

Targeting, Positioning and Their Importance

The targeting approach, in turn, may involve sending the mail that will attract the attention of the selected people and entities, as well as creating advertisements that will convince people and organizations interested in the well-being of local children to support the cause. The active use of social networking should also be interpreted as an important strategy that CAR will deploy to build awareness within the community and introduce the principles of cooperation as the means of assisting the selected vulnerable groups (Younis & Qureshi 2017). The application of innovative ICT tools will allow CAR to keep the target demographic informed about its changes and needs, thus maintaining the dialogue regular and processing feedback from its partners immediately.

Moreover, it is crucial to position CAR as the company that strives to meet the needs of disadvantaged communities, at the same time stressing the company’s willingness to seek additional resources for assisting the target demographic, including technological, personal, and sociocultural support. The organization should be seen as a charity that is willing to make an extra step to establishing a cross-cultural dialogue with the disadvantaged communities that it strives to support. The significance of targeting and positioning cannot possibly be underestimated for CAR. By following the described strategies, the firm will construct the market image that will allow it to shape its target audiences and attract new ones, thus making the firm financially lucrative and creating the setting in which CAR will be seen as a compelling and effective entity (Lei & Moon 2015). By utilizing the proposed strategies, CAR will be capable of creating a convincing and memorable brand image that will drive the attention of potential partners and investors.

Stages of Buyer Behaviour

Understanding the specifics of buyers’ behaviours is crucial for the successful performance of any organisation. For a charity, the analysis of buyer behaviour is particularly important due to the restricted amount of financial assets that a company can use. Therefore, considering the frameworks that provide detailed explanations of the intrinsic factors defining buyers’ decision-making outcomes is critical. Traditionally, the existing theoretical perspectives identify five stages of buyer behavior, which include the location of a problem, the identification of the solution, assessment of alternative options, purchase of the selected product or service, and the post-purchase behavior (see Fig. 1) (Lantos 2015).

About a charity, the specified behaviors will involve learning about the lack of support for children from disadvantaged families and the challenges that the specified concern poses for vulnerable groups (stage 1). At the second stage, potential buyers are expected to consider donating to CAR so that the company could provide the target population with the required resources and funds. The third step, in turn, will involve bargaining and seeking other solutions, including other charities or the means of affecting the situation of disadvantaged families through legislation or social services. At the fourth stage, target buyers are expected to invest in CAR to support its cause and address the needs of children from disadvantaged backgrounds (Saeidi et al. 2015). The fifth and final stage of the proposed framework will involve contemplations about the decision to donate and the outcomes of the donation. It is expected that, with a proper marketing campaign, the fifth stage will lead to the decision to support CAR’s cause regularly and donate to the organization on a monthly or annual basis.

Product Cycle and Extended Marketing Mix

Stages of Product Cycle and Changes in Marketing Strategies

In the context of CAR, the introduction stage will involve setting the platform for establishing the organization’s influence in the London setting. The designated stage will require using social advertising and digital marketing to build awareness about the needs of disadvantaged children. The described stage will also incorporate the processes of shaping CAR’s marketing framework and the approach toward allocating its resources (Restuccia et al. 2015). Moreover, it is required to support the introduction stage with an event that will attract the attention of the selected parties, including both individual contributors to CAR’s development and corporate entities. Thus, the organization will receive the funding and social support required for the active promotion of its cause (Ayantunji 2016). At the specified stage, it will be critical for CAR to arrange the company’s resources and shaping its strategy so that it could expand and address the needs of disadvantaged children on state-wide and even global levels.

The maturity stage, in turn, will involve ensuring that the company’s performance rates are kept at the same level and that its market share remains consistent. The described goal will be comparatively easy to attain as long as CAR remains relevant and uses the available information management tools to reach out to every possible stakeholder (Wang, Wang & Zhao 2015). The conflict between the latter, in turn, can be regarded as one of the major impediments that may hamper the company’s development at the specified stage, leading to its further decline (Hedberg et al. 2016). To avoid stakeholder conflict, CAR will have to introduce the corporate values and philosophies that will imply valuing the contribution of everyone involved in the enhancement of the organization’s performance.

Finally, CAR will have to face its decline stage, which will imply the loss of interest toward the organization’s performance. It should be noted that, as CAR enters the stage of its decline, the support of children from disadvantaged backgrounds will not cease to exist. Instead, other charities that purport the idea of supporting children from economically struggling families more effectively may emerge, taking over the target market and attracting the attention of potential investors. To handle the process of decline successfully, the firm should allocate its resources carefully and create an environment in which it would not suffer significant losses when exiting the target market.

It is expected that the company will alter its marketing approach as it passes from one stage to another. At the beginning of its functioning, CAR will need to establish a presence in the London setting. During its growth, CAR will focus on attracting new audiences and expanding into the new economic environments. During its maturity, the firm will strive to keep its stakeholders engaged in the organization’s performance and cause. Reaching its decline, CAR will use an exit strategy that will help it to meet the stakeholders’ needs.

Extended Marketing Mix for the Charity Organisation

To succeed in the selected area, CAR will have to develop a proper marketing strategy. For this purpose, the use of the Extended Marketing Mix, also known as the 7Ps of marketing, will be required. Involving the management of seven aspects of marketing (Product, Price, Promotion, Price, People, Process, physical), the proposed framework will provide opportunities for the organization to evaluate its chances for success and develop a sustainable approach toward appealing to the target demographic (Boonpradub & Thechatakerng 2015).

Since CAR is a non-profit company, the product in the 7Ps framework will be equivalent to the services offered to the intended population, which in the case under analysis is represented by children from poor socioeconomic backgrounds. The price component, in turn, will imply the funds required for addressing the needs of children. Currently, the goals of the company include reaching $50,000 for providing children from the local poor community with the required resources and providing consultations and assistance to their parents or legal guardians. Furthermore, the social support will require costs associated with transportation.

The place aspect of the 7Ps structure, in turn, suggests that the target audiences should be provided with a venue where they can receive the necessary services and products. While delivering these services to children directly is currently the goal of CAR, it may also be needed to create a center where children can receive the needed assistance, support, counseling, and guidance. The described goals will require extensive communication, which will be covered with the help of the promotion section. The identified stage of the 7Ps implementation will be twofold for CAR since it will imply communicating with its investors and recipients of its charity services. Thus, the integration of social networks and traditional tools for disseminating information will be needed (Jackson & Ahuja 2016). The application of digital marketing strategies will be essential for spreading awareness among potential investors and business partners, whereas traditional media tools will be useful for communicating with the populations whose needs CAR will strive to meet.

The promotion will be performed by setting a major event and focusing on the active use of social media as the means of shedding light on the desperate situation of children that come from poor socioeconomic backgrounds. The integration of different promotional tools is critical since it will allow CAR to appeal to all types of potential stakeholders. Furthermore, the use of both digital and traditional media will help to attract the attention of the organization’s key audience, which is children from disadvantaged communities. Thus, the target demographic will receive the necessary support, counseling, and information required for the further management of their needs.

CAR will also need physical evidence of its performance, which will include interviews with children and their family members. Reports concerning the well-being of children from disadvantaged communities will also be used to prove CAR’s efficacy. The process will involve locating the resources that are in deficit in the target community and delivering them to the specified demographic using the most effective infrastructure available. Finally, the people that will be involved in the performance of the organization constitute its employees, business partners, community members, and local authorities (Fadahunsi & Kargwell 2015).

Decisions Involved in Developing an Advertising Program

For CAR to succeed in the realm of the London charity setting, it will be critical to developing a program that will allow attracting investors and potential partners, at the same time keeping the focus on the key audiences of the organization. Making the advertisement that appeals to both children from economically disadvantaged families and potential investors is a rather challenging task, yet it can be managed by using a set of images and symbols that represent the problem and focus on the emotional needs of the specified demographic. Thus, the advertisement will be understandable to both children from poor backgrounds and CAR’s future partners. The task of appealing to children from economically complicated backgrounds is simplified by the necessity to target primarily their caretakers, parents, or guardians (Spear 2017). However, it is also critical that CAR should encourage building awareness among children as well, educating them about their needs and rights, as well as the resources that they can use to receive the required assistance.

Thus, the key decision on which the advertisement program will be based involves making the key message of the organization palatable to every single stakeholder involved. Another crucial decision that CAR will have to make concerns the range of media that it will utilize to spread the required information across the community. It is crucial to reach out to every single member thereof, driving the attention of authorities and general audiences to the identified concern. With the increase in the awareness rates, local authorities, organizations, and individuals can join efforts to maximize the outcomes and enhance the efficacy of the program (Sanzo et al. 2014). As a result, CAR will receive an opportunity to cater to the needs of vulnerable groups uninhibitedly and control the management of the target audience’s concerns.

Conclusion

Business Areas That Require Close Attention

At present, CAR will need to allocate its resources very carefully. Since the company will have to rely on findings extensively in the future, it is imperative to design the approach that will allow the firm to address the problem of costs, at the same time funding its target demographic and providing them with the necessary resources.

In addition, the public image and the brand identity that CAR will develop in the target environment should be the subject of close attention. While it is not typical for charity organizations to focus on marketing and especially branding, the creation of the image that will appeal to the target population, including investors and business partners, is critical for success. Therefore, the business areas associated with the organization’s public profile and especially the set of values that it merits as its foundational principles should be scrutinized closely. CAR must be viewed as trustworthy and reliable to both parents of disadvantaged children and potential business partners. Thus, CAR will attract the attention of investors and receives the acclaim that will help it to keep its growth stage at a comparatively long period. In addition, the issue of trustworthiness and reliability should be addressed. Thus, the business areas that should represent a particular concern for CAR are currently its marketing and public relations. As long as the organization maintains the communication with its key stakeholders open and honest, CAR will be able to keep growing in the UK and even global economic setting.

Recommendations for Further Actions

To create a compelling brand image and a memorable identity that will attract the attention of its target demographic, CAR will have to utilize the latest stools, thus involving its audiences in dialogue and creating a sense of urgency. In addition, the increased levels of engagement will convince the participants that they have a huge agency in the process of assisting vulnerable groups, particularly, children from disadvantaged backgrounds. With the consistent feedback and the communication that will be supported through social networks, the contributors to the cause will remain informed about the changes that will have been made to the lives of children. Thus, it is strongly recommended to integrate the latest technological tools into the design of a digital marketing strategy that will allow CAR to keep its buyers informed and maintain the conversation with them.

In addition, the suggested tool will allow processing feedback from the target audiences. As a result, the organization will shape the role of its investors and the rest of the community in the promotion of well-being among the identified vulnerable groups. By showing the results of the campaigns that will be held to support children from disadvantaged backgrounds, CAR will create a system of transparency and clarity that will encourage participants to support the organization and its cause. Thus, based on the sense of trust and the idea of clarity, CAR will be capable of helping children from financially unhealthy backgrounds.

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Introduction

Charity Commission is a public sector organization, which is responsible for regulating charities in the United Kingdom, in other words, it decides on the charitable or uncharitable status of a person or a public body, asking for financial assistance. It is a non-governmental agency because it is subordinate only to the UK Parliament (Charity Commission, pp 7-10). The structure and process of decision making in this organization can be described in the graphical way.

In order to evaluate the efficiency or inefficiency of any public organization, it is necessary to view it as a system. Therefore, each system can be divided into sub-systems or constituent parts. In this case, claimant is a person or organization, which requires financial assistance. To some extent, it is also a part of the system (or the subsystem), thus there are ways to investigate it. Probably, qualitative research methods will be more preferable, in particular, unstructured interview. Interviewees can provide valuable information as to the efficiency of the organization (Charity Commission), whether there are some bureaucratic difficulties that they have to surmount. Claimants can also propose ways to simplify the procedure of obtaining charitable status. However, it is also possible to employ quantitative research methods, for example statistical survey, because such approach is not as time-consuming as the oral interview.

Customer Service. Such elements of the system as customer service and claimants are closely intertwined. In order to study this component, the researcher should take a complex approach, for instance, it is quite possible to conduct a survey among customers as to the efficiency of this department. In this particular case, the structured interview with scaling questions (also known as Likert scale) will be the most useful. Additionally, the employees of customer service should be interviewed, because they can propose some amendments, which can contribute to the effective functioning of their department.

Regulations. It is possible to single out three sets of regulations: the system of charity regulations, the system of financial regulations and the system of organizational regulations. The claimant has to refer to each of them. They should be studied as a complex. Logical and statistical analysis can show whether these regulations arise any controversy, or dubious interpretation (Philanthropic Research, pp 90-96). Additionally, it is necessary to illustrate the relationships between the official regulations and the inner policy of the organization (Charity Commission), whether they are always in harmony or there is some discordance between them.

Inner policy of the organization. In order to study the inner policy of the organizations, one should analyze recent decisions made by the Charity Commission, especially whether they do not contradict the existing legislation (Charities Act 2006). Moreover, it is of the crucial importance to show whether this policy simplifies or hinders the procedure. This can be done by means of logical analysis and statistical survey.

Partners: Charity Commission closely cooperates with other agencies, in particular with HMRS (Revenue Service), which provides information to the Charity Commission about the financial activity of the claimant. The primary purpose of such collaboration is to establish the flow of information between these organizations. The evaluation of such multi-agency practice can be performed by means of SWOT analysis. It can identify inner qualities of the organization (which can promote or hinder effective multi-agency practice). Furthermore, the researcher should ascertain external factors, which may prevent organization from achieving the assigned task.

Bibliography

1. Great Britain. Charity Commission (2002). Report of the Charity Commissioners for England and Wales: Year Ending 2002.
2. Harry James White, Selmo Tauber (1969). Systems Analysis. Saunders.
3. Philanthropic Research, Inc, Inc Philanthropic Research (1998). GuideStar: The National Database of Nonprofit Organizations. Philanthropic Research.
4. Philip C. Semprevivo (2007). Systems Analysis: Definition, Process, and Design. Science Research Associates.

Introduction

Non-profit organizations exist to provide services that have little monetary profits that for-profit organizations focus on providing (Haruko & Sotashi 2006). Non-profits also participate in the provision of goods and services whose beneficiaries are too minimal for government agencies to undertake. In addition, these organizations play the key role of being the intermediaries between donors who provide funds and recipients who are the customers. Having to play the role of go between the two stakeholders means there exists a market for Non-profit services in the economies. This paper shall elaborate on the non-profits’ intermediary role, and how efficiency could be achieved in meeting the goals of main stakeholders, donors, and recipients.

These organizations are better placed to provide this role compared to business establishments, the reason being that the latter’s bottom line is to make tangible (monetary) and intangible (market share and recognition), both of which are not in the interest of the former. Indeed, the bottom line for non-profits is to serve as many recipients as possible using the most efficient means. without expecting to gain anything in return (Carella et al., 2007. p. 950). Given this scenario, it would be counterproductive for business establishments to provide nonprofit services. However, the inability of businesses to provide those services efficiently does not mean staying away completely; instead, entrepreneurs running businesses use portions of their earnings to run non-profits and therefore contribute to the well-being of such organizations.

Many businesses, especially multinationals, have throughout history established non-profits directed at financing certain causes. Indeed, the second half of the twentieth century saw the explosion of nonprofit organizations targeted at achieving organizational Corporate Social Responsibilities (Zaleski & Esposto, 2007, p. 322). However, not many companies can afford to establish and maintain internal non-profits, which mean that most of them have continued to support independent establishments. The reason for not establishing internal non-profits rise from fact that senior management in many companies would lose the focus of organizational goals as they concentrate on non-profits ones.

Further, non-profits are more befitted to facilitate the flow of donations from donors to recipients given the difference in stakeholder groups between them and business establishments. With regard to non-profits, the stakeholder group constitutes of donors and the recipients. Donors’ goals include funding courses believed to be worthwhile by the involved individuals or establishments, whereas goals of recipients included being provided with means to achieve ends. On the other hand, the major stakeholder groups in business establishments include shareholders whose primary goals include increasing return on investments. The other stakeholder group in businesses include consumers whose goal is to be provided with high quality goods and services at competitive prices. These differences in interests of stakeholder groups call for individual organizations (businesses and non-profits ) to stick to what they do best: help stakeholders achieve their goals, which further means specializing.

Charitable Contracts

Charitable contracts between donors and recipients is hardly developed or signed by the two parties instead, non-profits who play as intermediaries help both groups to enter into a contract (Ramia & Carney 2003). In fact, it can be said that donors enter into a contract with non-profits independently and the same happens with recipients. Non-profits therefore play the role of contract enforcers between the two groups. A broken contract is therefore between the non-profits and recipients, or non-profits and donors. This puts the non-profits at a tricky situation of playing the go between the two stakeholders that rarely gets to see each other. However, the non-profits are able to deal with the situation because that is one of their main roles, and which employees happen to be trained for.

Recipients role in the contract is to ensure that resources provided by donors are utilized in best ways possible. This means taking time to ensure that rules and regulations stipulated by non-profits are followed to the letter, failure of which means bleaching of contract. In order to ensure that contracts are drafted in ways agreeable to stakeholders, many non-profits are increasingly involving donors and some recipients in drafting processes (Karlan & List, 2007, p, 1780). This communicating to the stakeholders in matters pertaining to the contracts. Most importantly, non-profits should ensure that donors understand the rules and regulations that would govern the contract on recipients point. On their part, the donors have to feel obliged to follow into the contracts stipulated by non-profits.

Donations made to recipient can be said to meet the needs, because they are channeled through organizations that have accumulated enough faith from both stakeholder groups. Before providing funds, donors first ensure of undertaking research regarding the non-profits undertaking activities that they (donors) feel passionate about. This also happens when non-profits themselves are the ones that approach donors for funding. In addition, donors ensure of only funding non-profits that are more likely to abide by the rules and regulations that government such establishments. Dealing with many recipients does not mean that non-profits have to develop as much contracts. In fact, most of them develop just one contract that get copied to all recipients. However, non-profits have to develop individual contracts with donors, especially those ones providing significant amount of funds.

Non-profits role as intermediaries also comes out as a market where donors and recipients come to transact their businesses. In this regard, the non-profits help donors come to the market and identify non-profits that meet goals in line with donor interests. In their role as markets, non-profits position themselves in ways that would attract donors. This is especially done in the process o developing contracts. In fact, it is common to see non-profits offering donors some incentives that help in attracting funds, this could be done through free brochures or free subscription.

The issue of moral hazard does arise in the non profit sector, and it could happen both at the organizational and recipient levels. At the non profit level, organizations might become so used to getting funds from specific sources up to a pint of becoming totally dependent on such single source of funds. This is a dangerous way of running a non profit, because withdrawal of a major donor could mean total collapse of the organization (Eric 2006). At the recipient level, individuals getting donor help though non-profits may become so glued to the help to an extent that they fail to access other sources of finance. Such individuals fate is similar to organizations depending on one source: lack of financing when major donors end their relationship with the said organization.

The issue of private property arises when non profit facilities are used in by both donors and recipients. Despite being major stakeholders, both groups must respect the non-profits property. Also, private property issues might develop from from fact that non-profits are funded by donor funds, meaning that the this group of stakeholders have a stake in the running and taking care of facilities. In addition, the funds being used in the day-to-day running of non-profits are still the private property of the donors. This means that non profit themselves have to treat the funds and organizational facility as such, failure of which could lead to reduction of donor funds or end of meaningful relationship that could deal a blow to the affected non profit.

Problems in Enforcing Contracts

There are several greater problem associated with enforcing contracts in a non profit setting, most of which originate from donors. First, some donors that provide resources to run non-profits are happen to be busy with other occupations that leaves less time to deal with non-profits that receive funds from them. In this case, some non-profits just keep sending materials and fund requests with hope the moneyed donors would be enticed in providing more resources. The failure of the big donors to keep track of what is going on in the non-profits. This lack of time to allocate to non profit issues mean that ensuring that contrasts enforcement would not be followed.

Second, some classes of classes of stakeholder groups happen to take non profit matters too trivial to an extent that they do not take chance to follow on the governance on non-profits. As a result, the do not take time to ensure that contracts they signed with the non-profits are being enforced. This originates from fact that most donors provide smaller amounts of funds, meaning that following too closely on the governance of these organizations would equate to sort of wasting time that could be used in other productive activities. It is not even unique to find donors that give to non-profits just for the sate of tax write-offs.

Individuals providing larger amount of funding to these on profits ensure that contrasts are upheld through boards of directors, where larger groups of donors happen to have a presence (Bruno 2000). Being in the boards of directors help the big donors to ensure that best practices are followed in day-to-day running of the organization, failure of which they can decide to replace senior management until they are satisfied. In addition, the donors are provided with the ability to take part in drafting contractual agreements between them and the non-profits. Contracts drawn in this manner have the capabilities of meeting stakeholder demands, which explains reasons why may non-profits are encouraging big join respective boards of directors (Zaleski & Esposto, 2007, p. 320).

Another route used by donors to ensure that contracts are enforced is through voting with the feet (Margaret 2006). That is, deciding to stop supporting the non profit failing to adhere to the contract between the two. This is tactic used by both big and smaller classes of donors. Since non-profits themselves understand that their lifeline lies in proper provision of services through adherence to contracts agreed between them, donors and recipients, they (non-profits ) are more likely to follow agreements. This may also mean developing rules and regulations that would make it easy for the organization to adhere to the agreed contracts.

Non-Profit Accountability

As mentioned in earlier sections, non-profits are wholly accountable to donors that provide fund ad the recipients that depend on donor funds to achieve certain goals. In addition, non-profits are also accountable to regulatory authorities that govern several areas of improvisational activities. All this mean that organizations have to consider the wider group of stakeholder in making decisions regarding transferring of donations from donors to recipients. Any failure to meet demands of these groups would eventually affected organizational performance. This form of accountability is no much different from the one that business establishment are subjected to, which means that both forms entities are affected in the same way. This is shown by the repercussions which is faced by businesses and non-profits. One reason for this similarity is that governments are increasingly demanding greater transparency in non profit organizations, just like their profit counterparts (Levi 1998). This greater demand for transparency is meant to keep stakeholders and members of public well informed in how non profit organizations conduct their business, and how donor funds are utilized. Another reason for the increasing demand for non-profits to be subject to stringent accountability demands from states is because of their surge in number. Indeed, the number of non profit establishments has been getting bigger in the last few decades. Some of them are actually label non profit but have become conduits of making money. In addition, the greater number of them mean that they could be prone to some activities that need to be brought into the open, reason being that they are funded with individuals money and sometimes tax payers funds.

Limitations in Dispensing Donations

The growth in non profit industry has led to greater specialization targeted at increasing efficiency in individuals organizations (Edwar et al. 2007). The non-profits are therefore ensuring to just providing services that help achieving very specific goals, those that are in line with organizational comparative advantages. In this regard, it has become possible to pass donations from donors to the recipients. Government regulations requiring more transparency has also provided non profit organizations with incentives to use more open means of achieving transparency in the way funds are collected and utilized. This can easily be seen in the detailed annual reports filed with governments and made available to members of the public though various publications as well as websites.

As mentioned earlier, organizations are increasingly establishing internal foundations spearhead Corporate Social Responsibility goals. The companies having such arrangements tend to reduce their contribution to independent non-profits. Having internal non-profits also helps companies to have direct contact with recipients, which lead to better ways of understanding whether funds being provided are completely meeting the goals intended. Independent non-profits feel challenged to improve their accountability and performance, which leads to better provision of services to the donors and recipients, as well as attracting more stakeholders. Given the increased competition and efficiency in the industry, government involvement, other that demanding more accountability and adherence to laws of the las is highly discouraged.

The aforementioned aspects of non-profits indicate that they are best positioned to provide the service of transferring donations from donors to recipients. For profit establishments do not have the comparative advantages of undertaking non profit services, because the industry lacks monetary profits that drive entrepreneurs. Governments are equally not qualified to undertake the process, because non profit industry may not have large enough beneficiaries to attract government services. Maintaining charitable contracts between donors and recipients is the primary role of non profit organizations.

References

Bruno, B 2000, Managerial Directions in Non-profits , Public Choice, vol., 105, pp. 17-41.

Carella, M., Gurrieri, A. & Lorizio, M. (2007). Non-Profit’s Role in Migration. Journal of Socio- Economics, 36, 914-31.

Edward L., James C. and Kick, D 2007, The Role Non-profits in Public Sector, Urban Studies, vol. 44, 13, 215-94.

Glaeser, E and Andrei, S 2001, Not-for-Profit Entrepreneurs; Public Economics Journal, vol., 78, pp. 85-120.

Haruko, N. and Sotashi S 2006, Investigating Quality of Do Non-profit Management Operations, Economics Journal , v. 47, 112-41.

Levi, Y 1998. Rethinking the For-Profit vs Non-profit Argument: A Social Enterprise Perspective Economic Analysis, vol. 1, pp. 39-60.

Margaret, M 2006 , Policy Analysis in Voluntary Sector, Policy Studies, vol., 27, pp. 9-30.

Karlan, D. & List, A. (2007). Price and Charitable Giving. American Economic Review, 97, 1774-93.

Ramia, G and Carney, T. 2003, Non-profit Strategies in Public Management Networks, Labour Economics, v. 6, pp 249-81.

Zaleski, P. & Esposto, A. (2007). Market Power in Profit Hospitals and Non-Profit Hospitals.Atlantic Economic Journal, 35, 315-25.

Traditional nonprofits are dependent on money or goods contributed by people who give only after their own needs and wants have been met, which in turn put them in lack of finance, training, and resources, needed to reach their full potential. In addition, charities are facing increased competition from other charities and form private sector, which develop their own welfare programs, together with waning donors. The concept of social entrepreneurship combines the best methods from “hard-headed fiscal conservatism, and soft-hearted liberalism” to combat the problems encountered by nonprofits. The difference in the new breed of philanthropists is that they are as entrepreneurial in their charities as they are in their business. They consider grants as investment and invest precious philanthropic resources in helping to build the capacity of the nonprofit sector. Thus, an analysis of different issues and their ramifications in nonprofit sector require urgent attention.

It is opined that “philanthropy is not just about money or volunteer, but about giving the skill sets that businesses use.” (Deutch). GE Finance’s experiment to share some of its management practices with its paying customers is a successful example to this approach. It is blamed that in many voluntary charitable organizations money is fritted away by inefficiency. By transferring management and human relations skills in a “sustainable” manner the problems of non-profit organizations shall be solved. Programs designed to help teach younger generation that by applying resources and making good choices they can make a difference to the community will also assist in nonprofit management. To facilitate better understanding of the issue analysis of examples in present approaches to nonprofit organizations and different hurdles encountered by them are necessary.

Roberts Lee (2006) sites the example of Megan Hoot, 23-year old, who considers contributing to charities is the most valuable way to help improve the world, and she thinks “for students, time is much easier to come by than money”. Augmentation by students in charity work will inspire people to pursue volunteer work throughout their lives, and “with students, you pull people in with a smaller commitment. It is viewed that there is difference in perception and priorities of charity and voluntary work among generations of those born in the 1960s and 70s (Generation X), and those born in the late 1970s through the 90s (Generation Y). Younger generations are more likely to engage in volunteer work and donate money for the cause they believe in and that shows tangible results. A 2001 study by the United Way of America found that older generation demand more information before making gifts, tend to distrust large organizations, and refrain from challenging volunteer activities with social connections.

Another study in 2003 by the Center on Philanthropy at Indiana University in Indianapolis showed that “just 53 percent of Generation X households made donations of $25 in 2000, compared with 75 percent of baby boomer households and 80 percent of prewar households”. In addition, Generation X is dedicated to specific projects that are impact-focused” and look for “ways to integrate volunteerism into their career, leveraging their professional skill”. Whereas, Generation Y follows positive signs of volunteerism, as it is evidenced from recent study by the University of California at Los Angeles that 90 per cent of college-bound high school seniors devote their time for voluntary work. According to Prof. Leslie Lenkowsky, who teaches public affairs and philanthropic studies at the Centre of Philanthropy, “collective experience do mobilize civic engagement,” and younger generation is more vibrant in giving their valuable time and money for charity. (Roberts).

From the example of Baylor College of Medicine in Houston, that received $100 million gift in January for its cancer centre, and Children’s Hospital and Health Centre in San Diego receiving $60 million in June, it becomes clear that hospitals have no difficulty in raising money. According to the Association for Healthcare Philanthropy, 60 percent of donations are raised from individuals—grateful patients, their families, doctors, and others, and promoting and recognizing donors assist such campaigns. However, programs without the popular appeal of cancer or pediatrics get fewer donations, and the area with limited donor support is mental-health. In the words of Robert G. Kiely, Middlesex Hospital, a community hospital in Middletown, the hospital raised $416,000 for its hospice program, compared with just $9,000 for its mental health services.

It shows that areas that need unlimited funding, like psychiatric care and substance-abuse, receive less attention from donors. Community hospitals receive less attention from potential donors, and other sources of philanthropy like foundations and corporations fall back from giving money to essentially mediocre services. There is diminishing trend among foundations and corporations to donate money to support hospitals, because they are not ‘in the business of charity’ and there is increased interest for gaining clear advantage for their philanthropy. Without special events or adopting creative methods to increase popularity it is difficult to raise funds, as the donors are biased with potential stigma attached to certain services as well as the social standing of an institution. There is an alarming trend among corporations to donate money to entities where their headquarters are based than supporting local initiatives. But, “the smaller manufacturing companies and privately held business are being receptive,” and hence, concentrating on potential donors need to be refined. (Abelson).

There is a large increase in new wealth, driven by the changing role of the state and the emergence of private equity and hedge fund donors to participate in philanthropy. In the U.K, being a comprehensive welfare state that influences decision of individual and government share in each activity, the attitude of people towards charity is influenced by their personal and social view. Children’s Investment Fund Foundation, known as TCI, is a large Hedge fund in the UK, having offices in New York and London, is keen to support international health and development causes. In an e-mail message former President Bill Clinton wrote “The marriage of business and philanthropy that is at the heart of the Children’s Investment Fund and the Children’s Investment Foundation provides a great tool to effect serious change in the developing world.” (Anderson). The TCI’s managers use a portion of the fees generated by the hedge fund to finance foundation and thus donate to charity. In another example, Blue Orchid Capital 1 percent as a management fee and a 5 to 7 percent incentive fee, of which half the incentive fee goes to foundation. The consistent theme across both is they are in the business of investing in people, and there is marriage between the theme of business and philanthropy in charitable circles of America, which is anew concept in Britain. (Anderson).

However, one challenge that foundations face in distributing large amounts of money is finding organizations well equipped to handle it. The approach of Target group has to be considered as a successful example in tackling this issue. There are certain retail chains committed to giving back part of their earnings for charity, and the Minneapolis based discount retailer, Target’s point is that its customers become philanthropists, simply by shopping there as part of their income is distributed to support arts, education, and social services. Their first program, “Take Charge of Education,” involves giving 1 percent of any purchase to the school of the shopper’s choice (Vogel, Carol. Attention Shoppers: Philanthropy in Aisle 5. New York Times. November 12, 2007). Thus, through successful engagement of professional management ethics nonprofit organizations may be converted into profit making enterprises.

Works Cited

Abelson, Reed. Hunting for Dollars: Without Popular Appeal, a Hospital Program Can Suffer. New York Times. 2006. Web.

Anderson, Jenny. A Hedge Fund With High Returns and High-Reaching Goals. New York Times. 2006. Web.

Deutsch, Claudia H. Lessons in Management From the For Profit World. New York Times. 2006. Web.

Roberts, Lee. Younger Generation Lend a Hand in Their Own Way. New York Times, 2006. Web.

Vogel, Carol. Attention Shoppers: Philanthropy in Aisle 5. New York Times, 2007.

As a charitable agency, I’ll Take That works closely with other charitable organizations such as the Salvation Army and Goodwill to collect much-needed clothes for those in need. One of the current projects of I’ll Take That is a Prom Dress and Tuxedo collection drive which seeks to collect a reasonable amount of hand-me-down donations involving party clothes for young men and women from various companies and individuals. These clothes are then shared with the young women and men of lower-income families and communities. However, it is not easy to come up with the sponsorship for these types of projects. Through this paper, I plan to present my suggestions regarding how we can source donations for the aforementioned cause.

To begin with, we will have to come up with a creatively worded letter of request for submission to various clothing companies. The letter must appeal to their charitable or Good Samaritan side to convince them that donating their overrun or quality control failed clothing to our organization would be a very neighborly thing to do. Perhaps even suggesting that they work with us in developing a clothing voucher system which can be used by our member communities at a partner thrift store. Through this network, we can ensure that all the clothes donated to us by the companies will be allowed properly so that each girl or boy who needs a dress,gown, tuxedo, or coat, will be sure to receive one.

It would probably also be wise for our agency to approach the various thrift stores around the city and ask about their unsold dresses and coats in storage. Since clothing donations can be used as tax write-offs, coming to an agreement with them may just prove to be beneficial to both parties. They get their tax write-off, we get the clothes we badly need.

Another idea we can also consider is approaching the rental firms around the city and talking to them about the possibility of having them work with us in developing a clothes rental discount voucher for the communities within their immediate vicinity. Once again, the idea of the tax break should come into play and be hyped up to the company in order to get them to agree with our suggestions.

We must not also forget that “charity begins at home”. So, we should ask our relatives and children to go through their closets and see if they have any dresses or coats that still have a few good wears in them which they would not mind donating to our cause. We can divide the clothes between the number of communities we support and then maybe, raffle off the clothes so that all the teenagers will have a fair shot at getting a dress, tuxedo, or coat for themselves. The clothes can be given to the teens wrapped in company-sponsored bags. Thus making their act of charity an act of free, and I emphasize the word free, advertising as well.

Collecting clothes for charitable causes is no easy task because the companies would rather sell than donate their items. It is the job of I’ll Take That to change this mindset and show them that being charitable has its benefits. We can start doing this with the tax write-off system and keeping in touch with the companies throughout the year, constantly reminding them that our organization is always available to help them lessen their tax burdens anytime they want to.

The key here is to maintain a warm relationship all year round with the companies and individuals by convincing them that our actions help them more than it helps our cause. By doing that, we can ensure that communities we support will always have clothes to get from our organization whenever they need them.

Introduction

It is observed that evolution of charitable organizations in terms of the fact that they inure for the benefit of the community, or the public good. Again it is seen that charitable organizations need to have office-bearers who are sincere and honest and committed to the welfare and betterment of the charitable organization. This, it is seen that the onus of superintendence, direction, and control of the activities of the charitable organization are also important considerations that need to be kept in mind.

The main objective of duty of obedience is to ensure and maintain that the performance of the trustee in so far as the usage of trust funds are concerned, are in line with the objectives assigned by the donors and need to conform with applied needs of beneficiaries, or for the public good. If this is not possible, it is incumbent upon the trustees to seek application of cy pres norms for the trust funds, in keeping with the best interests of beneficiaries, and according to the desire of donors.

The meaning of charitable trusts has evolved, signifying changing circumstances of the value systems that inure for public benefit. It is seen that a lot of laws also impinge upon the conduct of operations in charitable organizations. It is also seen that in the event of any discrimination on racial grounds, it is well within the powers to disallow tax exemptions to charitable agencies.

The course that this study would be taking would be first in terms of examining and analyzing the Traditional Application of Trust Model, after which the trending model of for-profits charitable institutions would be taken up.

Next, it is proposed to take up governance and regulation of net profit charitable organizations.

After which, the analysis and interpretations of the study would be taken up and finally the conclusion would recommend the best course of action that could possibly be taken regarding charitable organizations.

Traditional Application of Trust Model

First of all, it would be necessary to define the meaning of the term “duty of obedience” according to the norms of a charitable organization which means “an expectation that a board member remains obedient to the central purposes of the organization and respects all laws and legal regulations” governing it. ¹Thus it is seen that the duty of obedience demands that the board members should be dedicated to the achievement of the company‘s mission. They are not supposed to act in such a manner that is not goal congruent, and it is also important that the endeavors need to be consistent with the missions of the unit.

Kurtz has emphasized that there are current needs for duty of obedience by the trustee towards the objectives of the charitable trust, besides that of loyalty and care. The Trustees are under covenant to carry out the terms and conditionality of the trustee in congruence with the deemed requirement of the trust donors. ²

Thus, it is necessary that trustees act in the best interests of the donors about monies at their disposal for common good and to meet the objectives of the trust.

It is seen that the main aspects about conformance with the board’s objectives would stem from the following:

1. Communications systems: The communication system must be such that could motivate, inform and guide employees and also volunteer to work with media personnel.
2. Evaluation: there must be manifest value to public, especially, in the case of non-profit trusts in which the public holds sustain stakes. It needs to have clear set of goals, Therefore, the evaluation process needs to take into account improvement in quality and also enforce accountability.
3. Financial management needs to consider fiscal responsibilities and also issues of public trust that could address the areas that need to come under the purview of duty of obedience.
4. Fundraising is a major aspect of the societal role in charitable or philanthropy and could act as a bridge between the donor and the beneficiary. Ethical considerations must be considered that could address these aspects of the business.
5. The resources to fulfill the mission need to be considered, in the context of the duty of care, duty, and obedience in the carrying out of official duties by the administrative board members and sub staff.
6. The ethical and legal issues need to be considered, especially in the context of the fact that the interests of donors and their influence over the unit need to be considered over a long time frame.
7. It is necessary that to maintain equity and fair play, the board members must participate in overall plan processes to implement the monthly plans and programs of charitable organizations. ³

It is seen that although the duty of obedience may be rigid and narrow in its approach, its main feature lies in the fact that directors of non-profit agencies need to put the interests of their organization above their personal interests. This is because they have fiduciary duties towards their company which may not be compromised. ⁴

Again it is seen that good faith is incumbent in charitable organization business, and the duty of obedience is linked with that of duty of loyalty and charity.

It is now necessary to consider the aspects of where the non-profit charity systems are heading. It is seen that wider use of financial propriety is being emphasized in recent years, in terms of accountability and control over the chances of wrongdoing by the office bearers of charitable agencies. The

“law of nonprofit governance is moving toward a more corporate model of accountability—a model that emphasizes audits and other formal financial controls,1 and that focuses enforcement on financial wrongdoing and misuse of charitable funds by directors and managers.” ⁵

However, the government’s obsession with rigid financial controls may not always be relevant. It may give rise to misconceptions and illusions that the objectives in charitable organizations are to strengthen the bottom line. This may set dangerous precedents for structures needing board size and constitution or even the autonomy of directors may lose sight of their main goals, or the objectives these structures need to defend.

It is often seen that social impacts are far superior to financial accountability. This is concerning such kind of financial control and adoption of a business model which, in the long run, may do more harm than good to the institution. If smaller firms are required to submit to rigors of business accountability as required by large well-diversified charitable organizations, they may incur costs far beyond their capacities. This may not be in sync with the non-profit-making objective that forms the core of such charitable activity. The paucity of government funds need not be a valid excuse for such organizations to lose sight of their focus on public benefits and the need to be socially relevant and useful,

“The doctrine of obedience “derives from trust law [under which] a director (trustee) must administer the corporation’s assets (trust) in a manner faithful to the expressed wishes of the creator and donors, who rely on those express purposes when making their contributions.”26 Strict trust law parallelisms would also impose “a trust on a charitable corporation’s unrestricted gifts… for those charitable purposes outlined in its articles of incorporation (and perhaps those manifested in its operations) at the time such gifts were received.” ⁶

NY Stock Exchange President Richard Grasso

The Courts are sometimes skeptical about upholding violations regarding the duty of obedience. A recent case of NY Stock Exchange President Richard Grasso is an instance of the pointer in which while the doctrine was referred to but not made prejudicial to him. The shift seems to be towards care, and not necessarily of loyalty. Over the years the shift has been from one of traditional value maintenance to the current need for protection of assets, or from protectionism to maintenance of objectives as was witnessed in the following case.

Manhattan Eye, Ear and Throat Hospital’s (MEETH)

Manhattan Eye, Ear and Throat Hospital’s (MEETH) petition to sell its assets. The Courts held that the decision to sell its assets was not in line with its objectives and was thus summarily rejected. Although the agreement would not have produced enough consideration for the assets, thus lending grounds for its disposal, the ground for disallowing sale of MEETH assets was based on the tenet that this would not meet the primary need of the charitable nature of its operations.

“Attorney General Spitzer today cited a State Supreme Court decision blocking plans for the sale and eventual closure of the Manhattan Eye, Ear & Throat Hospital, and (MEETH).

In a decision issued on December 3, Justice Bernard J. Fried upheld the Attorney General’s contention that MEETH’s Board of Directors failed to promote the hospital’s corporate mission.” ⁷

Duty of obedience gives way to fidelity

It is seen that over the years, the law seems to be changing from the narrow and straitjacketed notion of obedience to a broader framework of fidelity towards the commitment of directors in the attainment and maintenance of the charitable trust’s goals and objectives.

“Fidelity creates a legal norm explicitly connected to the charitable mission that also accommodates considerable flexibility and discretion for nonprofit boards” and “an obligation of fidelity is necessary to distinguish nonprofit directors from business directors, signals the importance of charitable mission for nonprofit organizations, distinguishes charities from social-entrepreneurial businesses, and requires subordination of non-charitable goals.” ⁸

It could also be seen that dynamism and major changes need to be instituted in the mission statement and charter documents of charitable organizations so that the narrow perception of ethereal obedience, sometimes subjective and incapable of being rendered justice in large broad-based organizations, give way to a more concrete and broad-based system of corporate fidelity by the directors and members of the governing body of charities to make their functioning more transparent, useful to the public and also, in line with the stated objectives of the charitable trust covenant.

In re Multiple Sclerosis Service Organization of New York, Inc

This fact was explained in the case of In re Multiple Sclerosis Service Organization of New York, Inc., in which the courts distinguished between the activities of the trust and the purpose of the trust. It is believed that the cy pres aspects need to be paramount. ⁹

Cy Pres norms

It is seen that the Court attached much value to the doctrine of cy pres, wherein, if the matter of trust cannot be met, due to dissolution, closure or lack of clarity in how the ultimate benefit passed on, or beneficiaries would be, it would need to be determined by the Court as to how these could be achieved. In this case the Courts reached the following conclusions:

1. Donatives purpose is important to factor in arriving at the proper recipient of funds
2. Non-specific grants would be deemed to be used for general corporate purposes
3. The actual activities need to be assessed since cy pres norms have to be considered. The recipient should carry on similar activities as the dissolving trust carried out.
4. The recommendation of the governing board of the organization and the reasons for that recommendation, as discussed above, should be given substantial deference, given the emphasis in the N-PCL on the critical importance of board management of not-for-profit corporations, both with respect to dissolution and in general. ¹⁰

Thus, it is seen that cy pres is an important aspect that governs the functioning of non-profit charitable organizations and in the event of the need to distribute unallocated funds, equitable and as near to rules also have to be maintained. If a donor A bequeath funds to B as charity, B being a charitable organization, in the event B is dissolved or fails to meet the criteria of the grant, then the Courts would have to pass on the grant to other institutions, who carry out similar activities as B did.

“In Alco Gravure, Inc. V. Knapp Foundation 1985), the New York Court of Appeals held that the quasi cy pres standard would be applied to any change in the manner of administration of not-for-profit assets, citing the provisions of the N-PCL addressing restricted gifts and dissolution.” ¹¹

In other words, if the trust objectives have been realized, or if conditions have come to pass that render it impossible, or difficult to realize trust objectives, it would become necessary for diversion of funds, or cy pres application of the funds to inure for the public good and for protecting the interest of beneficiaries. ¹² The concept of obedience would fail to meet standards, in so far as it fails to translate the stated objectives of trust into action.

The trending use of for-profit corporate law

The main aspects with regard to for-profit corporate law in the US context would be about taxation aspects under Section 501(c (1) of the Internal Revenue Services. It is to be seen that even for-profit charitable organizations could claim tax exemptions or deductions based on the kind and level of activities that they perform or the charitable services that inure for the public good.

Therefore, the main aspects that need to be considered are not whether the trust seeks profits or not, but the kind of activities and work that they do, to promote their objectives of public service and also to work in sync with the predetermined laws and legal requirements of the laws of the state governing charities.

In as far as charities are concerned it is seen that different laws operate in different states and it would thus be difficult to seek broad-based laws that govern US charities as a whole.

However Section 501 (c) (1) states certain stipulations that need to be carried out. They are as follows:

1. It should be made up fully of exempt purpose items and no portion of its earnings should benefit private shareholders and individuals.
2. It should not attempt to influence laws for any of its activities and should not have any kind of political agenda or affiliations.
3. In the event any excess benefit transactions are carried out, to profit any individual who may wield influence over it, surtax must be charged and paid as laid down by the law. ¹³ Again it is seen that in most cases, it would not be allowable for officers or office bearers to be provided salaries for their work contribution to for-profit charity. Even the amount of honorarium, etc that is being provided should be in line with the norms and should be duly audited by professional accountants who may also need to provide detailed reports regarding the functional aspects of the business.

Governance and Regulation of Net profit in Charitable Organizations

A high degree of accountability and responsibility must be sustained in the organization. The Board members need to ensure that all activities undertaken by the charity are for the benefit of the public and not for individual gains. They need to be very clear about their duties, obligations responsibilities and privileges, whatever is assigned to them through the Charter of incorporation and for day–to–day functioning of the unit. “For example, individual board members may be held responsible for the failure to remit payroll taxes, unless they can demonstrate that there were reasonable controls in place that were usurped.” ¹⁴

While considering the regulation of net profits in charitable organizations it is necessary that both for-profit and non-profit need to maintain accounts and submit returns to respective IRS. However, it is seen that as a normal rule, non-profit charities do not issue stock or declare dividends. Thus the raising of capital and the payment of dividends to stakeholders form part of the regulatory aspects in charity business. Again it is also necessary that profits need to be plowed back into the business so that the corpus for the stakeholders of the charity is widened and every attempt is taken to provide benefits to the public, as is the primary objective of all kinds of charity, whether public or private in the US context. Thus, audit and maintenance of transparent accounts, holding of annual meetings and other formalities of joint-stock companies are also applicable to charity, although the level of restrictive trade prices is lowered. However, it is seen that the surplus funds need to be in the business itself and cannot be reinvested for profits in most cases.

Another aspect of recent origin is the use of charitable institutions for financing global terrorists’ activities. Following the September 11, 2001, terrorist attacks, the US government has closed down 3 of the 5 largest international Muslim humanitarian agencies and frozen nearly $8 million assets of these institutions.

Again it is also seen that under Executive Order 13224, the US has designated 12 charitable organizations as having links with Al Qaeda, and similar terrorists’ outfits. “The FATF Special Recommendation VIII on Terrorist Financing commits all member nations to ensure that nonprofit organizations cannot be misused by financiers of terrorism. The United States is co-chairing the FATF Terrorist Financing Working Group that has recently produced an international best practices paper on how to protect charities from abuse or infiltration by terrorists and their supporters.” ¹⁵

The charitable trusts cold act as a good decoy for movements of funds, especially among countries sponsoring and abetting terrorism on their soil and therefore, the US administration is of the unqualified view that these kinds of transactions have to be stopped completed.

The issue of licenses and permits to do business is also intrinsic for charitable organizations, including registration and the filing of particulars of directors, shareholders and other office-bearers. It is also necessary that proper performance appraisal of for-profit organizations and the method in which their surplus has been used also need to be available to concerned departments. Filing of Annual Audited Accounts and other statutory details need to be made to ensure that there are good controls and monitoring of the way trust funds are being utilized by profit agencies.

It is also necessary that directors of charities need to exercise due care and judgment not only in the affairs of the trust but also in their level of commitment and dedication to it.

“Nonprofit directors and officers have three fiduciary duties under current law: the duty of care, the duty of loyalty, and the duty of obedience. If directors do not exercise these duties, they may be personally liable for their actions.” ¹⁶

Charity trusts are banned from indulging in political activities

It is further seen that any kind of political activities by charities are categorically banned and if indulged in. may affect their tax exemption status. Charities must also take care in trying to influence public opinion or legislation, because no substantial part of an NPO’s activities may be lobbying [IRC section 501(c) (3)].¹⁷

Again, it is also seen that “The IRS may revoke the organization’s exempt status if any amount of political activity is conducted.” ¹⁸

Further the directors or authorities of charities cannot make speeches that would show the unit in a bad light, or seek to demoralize the present staff or workforce.

When considering political campaigning, it could be said that candidates could make speeches at charitable events, but this should meet the norms laid down under IRS News 2004-79. “Charities should be careful that their efforts to educate voters comply with the Internal Revenue Code requirements concerning political campaign activities.” ¹⁹

Factors that would disqualify charitable organizations from tax benefits

Thus it is seen that the reports provided by the IRS inspectors would be crucial in deciding the case of whether exemption status needs to be continued to be given to the charity. Some of the major issues could lie in the following:

1. When any kind of discrimination is shown in managing of work staff and outsiders in terms of racial or other kinds of prejudices.
2. Excess benefit has been received which has either not been accounted for, or has inured for the personal benefit of the directors, or promoters and not for the charity as such.
3. Indulging in political activities or lobbying that is emphatically prohibited by the bylaws and charter of the charity or by Section 501 (c) of IRS Code.
4. Any other kind of activity that transgresses the spirit and objective of the charity, or is such that the deciding authority or Court decides would be detrimental to the interests of the objectives and goals of the charity and the Court feels that it is a fact that aspects that inure for public benefit have been compromised.

Under such circumstances, when Governmental regulation and enforcement of laws in the workings of such charity needs to be enforced it could lead to actions against the directors of such charity, and also temporary or permanent suspension of tax-free status, with penalties and fines that may be deemed necessary from time to time.

However, it is also well within the ambit of the charity to appeal against the orders and prove remedial measures that its Board thinks necessary considering the circumstances of the case and the fact that the Board feels that the charity has been victimized or is innocent of alleged wrongdoings or breach of rules.

Conclusions

It is seen that over the years of its fruitful and yeoman service rendered by charities in the United States, the priorities have not shifted from one of utilitarian based on the duty of obedience to one of commercialization, based upon integrity and allegiance of the directors of charities. The narrow and straitjacketed view of obedience has now embraced a wider aspect of fidelity, which also includes the right kind of strategic decision making and policy adherence that marks charity off from others of its ilk.

The fundamental premise is that stakeholders and directors of charities need to now take a broad-based approach on the administrative and accounting systems prevalent in their charities and lay more stress and emphasis on the preventive and pro-active aspects of its running, keeping in consonance with the fundamental rubric of its creation and also eschew actions that could be deemed as lowering the standards and ethical values that are so necessary and virtually important in the matter of governing charity trust affairs.

It is necessary for the directors to draw up short, medium and long term planning that could possibly take charity along the right path of progression and distinction and also eschew parochial and vested interests, which in the long run could even vitiate the very fabric of its existence and sustenance in the United States of America

Again, it is also necessary that with the changing times the value systems surrounding charities also need to undergo sea changes. Not only the objectives

of the charity need to be more deeply etched across the performance of these functionaries but it is also necessary that the objectives of the grantor or donor also need to be met. In the first instance, the Board must understand the motive and intentions behind granting such charity, for tax purposes, or for any other reason, including advancement of learning, art or culture for alleviating poverty or to aid handicapped people, etc.

In the context of the ambitions of the donor, it is necessary for the Board, within the specified timeframe, to take necessary steps for the best use of such trust funds, keeping the best interests and objectives of the trust in mind. It is also necessary, in order to avoid future litigation, to use the grant or donations, according to the wishes of the donor and for the specific purpose assigned by him.

Again, it is also necessary that in case no specifics have been delineated, it needs to be shared by the bylaws of the charity and also the decision of the governing body of the charity.

It is seen that charities do serve a very important position in society, especially in the poverty-stricken and backward segment of American society. Their plight could be alleviated through the judicious and sincere use of charity and other benefits, especially in healthcare, education, employment, etc.

However, maximum responsibility would lie upon the board of directors and others to decide how best and optimally trust funds could be used for the betterment of societal needs and aspirations. Should actions of office bearers of trust funds fall short of desired goals and objectives, it is necessary to seek remedial measures to ensure the protection of interests of beneficiaries in line with the motives of donors.

References

1. Claudia L, Kelley, “Advising nonprofit organizations.” All Business.
2. “Charities may not engage in political campaign activities.” Internal Revenue Service: United States Department of the Treasury.
3. Cuomo, Andrew M, “Media centre: court blocks sales of Manhattan hospital.” Office of the Attorney General.
4. “Exemption requirements.” Internal Revenue Service: United States Department of the Treasury.
5. Fremont-Smith, Marion R. “Governing nonprofit orgnizations: federal and state law and regulation.” Harvard University Press. Web.
6. “Grassroots governance: governance and the non-profit sector: transparency and accountability.” Certified General Accounts Name Your Needs CGA.
7. Mann, Pamela A. “Operating the New York not for profit organization: how to make structural changes.”
8. “Principles & practices guide: for nonprofit excellence in Michigan.” M N A: Michigan Nonprofit Association.
9. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity; abstract.” SSRN: Social Science Research Network.
10. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity.”
11. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity: reflection on the conference.”
12. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity: Fordham law review: trust law defines obedience.
13. “Topic paper and articles: board glossary: duty of obedience.” Board Source: Building Effective Nonprofit Boards.
14. “Terrorist organizations, freezing of assets: protecting charities from terrorists abuse.” Espionage Information.

Footnotes

1. “Topic paper and articles: board glossary: duty of obedience.” Board Source: Building Effective Nonprofit Boards.
2. Fremont-Smith, Marion R. “Governing nonprofit orgnizations: federal and state law and regulation.” Harvard University Press.
3. “Principles & practices guide: for nonprofit excellence in Michigan.” M N A: Michigan Nonprofit Association.
4. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity.”
5. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity: reflection on the conference.”
6. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity: Fordham law review: trust law defines obedience.
7. Cuomo, Andrew M, “Media centre: court blocks sales of Manhattan hospital.” Office of the Attorney General.
8. Sugin, Linda. “Resisting the corporatization of nonprofit governance: transforming obedience into fidelity; abstract.” SSRN: Social Science Research Network.
9. Mann, Pamela A. “Operating the New York not for profit organization: how to make structural changes.”
10. Mann, Pamela A. “Operating the New York not for profit organization: how to make structural changes.”
11. Mann, Pamela A. “Operating the New York not for profit organization: how to make structural changes.”
12. Fremont-Smith, Marion R. “Governing nonprofit orgnizations: federal and state law and regulation.” Harvard University Press
13. “Exemption requirements.” Internal Revenue Service: United States Department of the Treasury.
14. “Grassroots governance: governance and the non-profit sector: transparency and accountability.” Certified General Accounts Name Your Needs CGA.
15. “Terrorist organizations, freezing of assets: protecting charities from terrorists abuse.” Espionage Information.
16. Claudia L, Kelley, “Advising nonprofit organizations.” All Business.
17. Claudia L, Kelley, “Advising nonprofit organizations.” All Business.
18. Claudia L, Kelley, “Advising nonprofit organizations.” All Business.
19. “Charities may not engage in political campaign activities.” Internal Revenue Service: United States Department of the Treasury.