Question

Performance Management

Caring Community Church is a non-denominational worship center for new immigrants to Canada. Programs include language classes, community networking events, and cross- cultural appreciation and learning events. The center is very popular, and a large group of members relies on its services. The church is run by Pastor Kim, a well-respected pastor who is popular with the membership. Unfortunately, the center has not kept up with its operating license requirements, and it is at risk of being shut down by the city. In addition, the church's bookkeeping has been neglected, and its bank account is frequently overdrawn for short periods of time.

Questions:

1.   How does the Caring Community Church illustrate issues common to NFPOs (Non-for-Profit Organizations)?

2.   What can be done to mitigate these issues?

Answer 1

One of the major issues that not-for-profit organizations face is intense government regulations. This is depicted above where the Caring Community Church is facing the challenges of keeping up with the operating license requirements. Some of these NFPOs are facing challenges with government regulations to the extent that they're shut down. They may not have the proper skills or expertise to advise on legal matters.

The other issue that's facing NFPOs which is portrayed above is that of management and accounting issues. Like in the scenario above, there's no proper accounting which means there's lack of transparency and accountability in the manner in which the funds are being used. Perhaps that's why it's having the first challenge above.

Explanation:

An organization as such should solve the first challenge by hiring experts or seeking advise from individuals who can help on matters law. They should ensure that they at least seek legal advise to avoid being shut down. It's important to comply and ensure that they uphold high operating standards.

The second issue requires hiring a certified accountant. Individuals who keep and maintain proper keep booking should also be hired. There's need to have external audits annually to ensure that there's transparency and accountability. This can also help in matters of internal control especially on segregation of duties to avoid funds in the bank being overdrawn