Potential Solutions to Prevent Budget Deficit in Non-Profit Organizations: A Case Study of Goodwill San Francisco

NON-PROFIT

Table of Contents
Introduction 2
Situation facing by Goodwill 2
Outline the potential solutions, giving the pros and cons for each alternative solution 4
Tracking budget 4
Reviewing business spending 5
Raising revenue 5
Implementing solution to get rid of budget deficit 6
Conclusion 7
References 8
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Introduction
There are two types of organisations i.e.for-profit organisation and not for profit organisation.
not for profit organisations are usually known as non-profit organisations or NPO. Non-profit
organisations are established in order to provide social services by introducing several programs
for the citizen of a country. Economic definition of non-profit organisation is different. Non-
profit organisations use their surplus of revenue in developing their programs and services while
for-profit organisations distribute their surplus of revenue among the leaders and the
shareholders (Denzin and Giardina, 2018). Budget is financial documents or may be termed as
report which provides an overview of the way the organisation is planning to execute their plans
by spending the revenue it brings. Expenses and revenue are the two key components of the
budget. Budget surplus for a non-profit organisation means the company has managed to bring
more money than It has spent for the services it provides and budget deficit for a non-profit
organisation means the organisation could not meet the budget goals which is outlined by the
finance committee of the organisation, spending and fundraising etc (Carlson, 2016). In February
2009 the organisation named Goodwill San Francisco has faced a serious economic problem and
there was 3-million-dollar budget deficit which has threatened the ability of the organisation to
provide services to the citizen. In this article potential solutions to raise funds and to prevent
budget deficit will be provided with the strategies to implement the most secured solution.
Situation facing by Goodwill
Goodwill International was established in the year 1902 by Dr Edgar Helms. The organisation
used to distribute household goods and clothing to the poor people. Dr Edgar Helms employed
some unemployed people in order to repair the goods that would be distributed to the poor
people and this is how the organisation started its business with this philosophy of “hands up, not
hand out” (Hazy, 2015). Goodwill of San Francisco accompanied by Reverend Samuel
Quickmire started helping those citizens who were in need. In 2004 the organisation has
appointed Deborah Alvarez Rodriguez. She came to the organisation with clean vision and
mission in order to make the organisation a bigger one. The board of goodwill San Francisco has
appointed some staffs and interdisciplinary team in order to review its mission and vision
(sfgoodwill.org). The organisation has developed a set of programs for the citizen who are in
need. The mission of the organisation is to find solutions to reduce poverty through the business
they operate. And the vision was to build a poverty free world where the people would be live in
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