Impact of Environmental Factors on Non-Profit Organization CARE Australia

This report analyzes the impact of environmental factors on the identified opportunities and weaknesses of CARE Australia, a non-profit organization. It discusses the influence of social, political, and economic factors on fundraising and the opening of new branches. The report also presents scenarios and preferred strategies for overcoming challenges and improving sustainability. The benchmarks used for assessing progress are outlined, and recommendations are provided for the organization's future success.

Non profit or government
organisation

EXECUTIVE SUMMARY
The following Report is based on non-profit organization that is CARE Australia. The
company makes efforts to resolve the causes of global poverty in different countries that are in
the stage of developing. It is one of the biggest international emergency development and
supporting organization. It was founded in year 1987 by Malcom Fraser.
Firstly the Report has provided brief introduction of the contents that are included in this
Report. Further, it has provided the understanding of different types of factors that are existing in
business environment which are influencing the issues and opportunities that are idntified by
CARE Australia. The issue is that business has raised less funds in year 2018 as compared with
previous year Bray (2016). The opportunity that is identified by CARE Australia is that it may
open a new branch in any other country other than in which it is currently located. It has ben
found that, there are various environmental factors that are impacting the identified issue as well
as opportunity. It involves social factors like availability of skilled workforce, political factors
such as rules and regulations of the government such as taxation policy etc. Further, it has
explained the influence of economical factors like rate of interst on the ability of people donating
funds to non-profit organization.
Further, different scenarios has been analysed such as if there is condition of non
availability of skilled workforce then what steps CARE Australia will take. This will affect the
awareness in respect of the business of non-profit organization. Moreover, second scenario is
related with the issue of funding resources in the business. This issue has affected the ability of
CARE Company to perform its operations in effective and efficient manner.
The Report has described another scenario which is related with poor management of
differemty functions of the organization. The company is required to properly administer and
monitor its functions for optimum utilisation of funds. Further, it has been found out that
company has analyse the solution tha is hiring skilled workers. Moreover company has
determined that it should use budgeting techniques and tools for making adequate utilisation of
available resources.
At last, the Report has explained the benchmarks that are used to determine the progress
of CARE Australia towards the preferred scenario. It has also explained recommendation that
includes why the analysis is important for company.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
2.1 The impact of environmental factors on identified opportunity/weakness..........................4
2.2 Scenarios...............................................................................................................................5
2.3 Preferred scenario..................................................................................................................6
2.4. Benchmark used for assessing progress...............................................................................7
RECOMMENDATIONS/ CONCLUSION.....................................................................................8
3.1. Significance..........................................................................................................................8
3.2. Steps to be taken...................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Non for profit organizations refers to the business that focuses on a particular social cause
or shared point of view. It is the business that uses the surplus cash inflow to attain the ultimate
aim and objectives rather than distributing the revenue to shareholder's, members and leaders of
the organization. These types of businesses are exempted from tax it means that non-profit
organizations are not required to pay income tax on the funds they receive for their business. The
Report is based on Care Australia Bray (2016). It is a non-profit organization that helps to
resolve the causes of poverty in different developing countries. The projects of CARE Australia
is mainly funded through donation of community that has secured additional support from
different institutional partners such as Government of Australia, World Health Organization,
European Union. It also has a team of professionals that helps to provide support for long term
rehabilitation for communities and relief. They provide the people of community with necessary
food, health facilities, shelter in the time of crisis. It also focuses on providing support to girls
and women living in developing countries to develop long term sustainability to fight against
poverty.
The long term projects involve food security, education, health, economic development
etc. The Report will outline different types of solutions that will help to overcome the problems
that CARE Australia is currently facing. Further, it will also describe the process or metrics that
will be used by the management that will help to promote sustainability of the business. It will
also explain the processes or metrics that will be used for measuring the impact of the change.
The Report will also outline the impact of environmental factors on the weaknesses or
opportunity identified by the organization, various types of situations that may arise due to
environmental factors, benchmarks that are used for assessing the progress for long term
sustainability of the business, recommendations and conclusion of the overall report etc.
MAIN BODY
2.1 The impact of environmental factors on identified opportunity/weakness.
The environmental factors that may affect the issues identified such as fundraising
through government grants, charities etc. is very low as compared to the programmes that are
conducted by the business, another issue is that firm should administer the funds properly so that
adequate funds will be available for conducting different types of programmes Weinstein &

Barden (2017). One of the opportunity available to CARE Australia is that it may open a new
branch in the country in which the services of the company is high. Moreover, firm is also facing
the issue of lower funding as compared with funding in previous years Prajogo (2016).
Government rules and regulations -
One of the major factor that impact the problems and opportunity identified by the
business is the rules and regulations of the government. If, rate of tax applicable on charity
giving is not high in that case, people will donate less funds. This is the major reason that people
donate less funds to organizations that are involved in charity and projects for sustainabile
development. The regulations of government like policy of taxation etc. Affects the raising of
funds by CARE Australia.
Economical factors -
There are various factors that affect the raising of funds by the organization. It includes
the rate of interest. For Example – if the rate of interest that will affect the execution of the plans
by the organization. If, the rate of interest on the savings of the people is less then people will
save less as a result they will significant segment of the population will impact fund raising of
CARE Australia Butler & Wilson (2015).
Social factors – The level of employment such as non availability of skilled workforce in the
country also affects the donation by the people to non-profit organization. CARE Australia has
identified the opportunity of opening new branch in another country. For example – to open new
branch firm will have to recruit skilled personnels. Therefore, level of unemployment in the
country impact the opportunity as well as issue identified by the organization. This will also
affect the ability of business to spread awareness regarding the work it is performing for the
people.
2.2 Scenarios
If, there is high level of unemployment in country in which organization wants to open a new
branch
It is the scenario related with the opportunity identified by CARE Australia. The given
situation is that in case if there is non availability of skilled workers in the country in that case
business should take steps such as it should outsource workers from country other than country
in which it has started new branch. Moreover, it may start programmes that will help to improve
the skills of employee's that will help in sustainabile development of the business.

The most important scenario for Care – Australia is related with the issue of funding
resources. Because of reduction in the funds sources it has become one of the most important
issue for the company to carry on its business operations in an effective as well as efficient
manner. With the help of budgetary frameworks, such situation can be overcome (Andersen,
Duffie and Song, 2019). By formulating a strong budgetary plans and strategies, it can help Care
Australia in making proper as well as effective allocation of available limited budgetary
resources. This will help the company in making proper allocation of available resources of both
human as well as financial nature as per the requirement of business operations. It will help
company in reducing unnecessary business expenses thereby maximizing profitability aspects.
Another scenario can be related with having of poor management functions of the
company which needs to be improved. For gaining competitive advantages in the current market
place, it is very much essential for the Care – Australia to formulate sound as well as strong
business plans and strategies in line with business aims and objectives. For continuing business
activities and processes in efficient manner, it is very much important for business organisations
such as Care - Australia to have proper administration and monitoring of funds related operations
appropriately so as to reduce possibility of lack of monetary resources for other business
departments who are actual in need of such resources (Clausen and et.al., 2016). For overcoming
such scenario skilled as well as experienced staff members should be hired by the Care -
Australia having responsible nature for effective utilisation as well as allocation of financial
resources.
2.3 Preferred scenario
The most preferred scenario for Care – Australia is related with funding of resources for
carrying on business operations. The term fund raising is considered as one of the most important
area of business operation which needs to appropriately handled by skilled team members of the
company. There are various funding sources which are used by the Care - Australia so as to
gather funds and requisite cash balance with the aim executing all of its business operations in an
effective manner. The main sources from where funds are generated or collected includes
charities, government grants, bank, financial institutions etc.
In the year 2018, around 44 million dollars has been spent by the organisation so as to
conduct different programs related to the factors which includes poverty reduction, educational

facilities, reducing hunger among people by feeding them. In the present year, such business
organisation has decided to make reinvestment of 11% of the total funds so as to generate it for
future business purpose. The key issue which has been affecting this business organisation is
related with the continuous reduction in the level of funds amount which is held by the business
organisation. For Care – Australia, it is having an opportunity to make improvement in its issue
by formulating sound as well as effective strategies and plans so as to attract investment for the
business growth as well as development in the near future.
By making use if budgetary tools and techniques, the management of Care – Australia
can formulate its budgetary plans accordingly. It will help the company in making proper
utilisation of available resources of both the financial as well as human nature. Estimates can be
made related to the amount which will be incurred for carrying on a particular business
operations by defining allocation of such financial resources appropriately. Also, it can make
comparison with the actual amount of expenses incurred so as determine any discrepancies and
taking preventive measures for mitigating its negative impact and for making it more effective as
well as efficient in the long run period of time.
2.4. Benchmark used for assessing progress
Benchmarking is defined as standard which is used by every business organisation for
making improvement in the current market position as well as in the performance level of the
business. Care Australia with the help of different types of benchmarking methods can determine
actual position of the business performance which are described as below:
1. Financial – With the help of financial parameter, every business organisation can
determine its financial as well as liquidity position for the relevant accounting period
(Brandenburg, Maas and Grimme, 2015). By making of gross profit, net profit ratio, Care
– Australia can evaluates its profitability scenario which will depicts about companies
efficiency in generating profits with the help of available business resource in its business
operations.
2. Business processes – By assessing business processes and concepts which has been
followed by other profit making companies, Care - Australia can makes changes in its
business operations as well. This will help it in identifying key aspects which has been

used by these companies in conducting better operations and measures which helps them
in gaining competitive advantages in the market place.
3. Government – Care - Australia is basically required to make compliance of all the
applicable rules and regulations which are imposed by the legal authority for remaining
competitive in the market place. Also, because of interference of government as well as
of other political parties, it has hampered business operations too some extent. By making
use of standards as defined by government bodies, Care – Australia can evaluate its
performance as well as progress level (Quinn, Crowley and Richardson, 2017).
4. Operations – By evaluating the efficiency as well as effectiveness of business operations
being undertaken by the company, one can make assessment that what will be the growth
and success level of such company in the highly competitive market place.
RECOMMENDATIONS/ CONCLUSION
3.1. Significance
From the above report it can be assessed that for entering any business market across the
globe or at the national level, it is very much essential to first undertake environmental analysis.
This will help the company in getting better understanding as well as will provide deep insight
about the current market opportunities which can be acquired by the Care – Australia for making
high profits in the market place. With the help of such analysis, it has provided a base for
conducting business operations in much better manner thereby resolving of all the current issues
being faced and creating negative impact on the performance measures of business. With the
help of different benchmarking methods, Care - Australia has been able to identify progress
factors as well as unfavourable situation going to be arise in future for which requisite changes to
be made.
3.2. Steps to be taken
For capturing large market share as well as customer base, it is very much important for
every business organisation to adopt sound business plans and strategies in line with business
aims and objectives as formulated. By developing an effective budgetary plans, Care – Australia
can overcome its financial crises to some extent as it will provide a base for making proper
allocation of available resources in the business.

Also, in case of having better management as well as administrative frameworks in the
business, it is required on the part of the company to have skilled as well as experienced staff
(Staniewski, Szopiński and Awruk, 2016). Also by organising training sessions, workshops
related to professional development programmes Care – Australia can over its issue related to
administrative function.

REFERENCES
Books and Journals
Andersen, L., Duffie, D. and Song, Y., 2019. Funding value adjustments. The Journal of
Finance. 74(1). pp.145-192.
Brandenburg, J. G., Maas, T. and Grimme, S., 2015. Benchmarking DFT and semiempirical
methods on structures and lattice energies for ten ice polymorphs. The Journal of chemical
physics. 142(12). p.124104.
Bray, I. (2016). Effective fundraising for nonprofits: real-world strategies that work. Nolo.
Butler, R., & Wilson, D. C. (2015). Managing voluntary and non-profit organizations: Strategy
and structure. Routledge.
Clausen, P. T. and et.al., 2016. Benchmarking of methods for identification of antimicrobial
resistance genes in bacterial whole genome data. Journal of Antimicrobial Chemotherapy.s
71(9). pp.2484-2488.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics, 171, 241-
249.
Quinn, T., Crowley, T. and Richardson, M., 2017. Differential expression analysis of log-ratio
transformed counts: benchmarking methods for RNA-Seq data. BioRxiv, p.231175.
Staniewski, M. W., Szopiński, T. and Awruk, K., 2016. Setting up a business and funding
sources. Journal of Business Research. 69(6). pp.2108-2112.
Weinstein, S., & Barden, P. (2017). The complete guide to fundraising management. John Wiley
& Sons.
Online
Overview of Care Australia. 2019. [Online]. Available through:
<https://www.care.org.au/>.