memo

August 7, 2018

David A. Williams

President and CEO

Make A Wish

Subject: Data Analysis Consultation

Dear Mr. Williams,

The Toast To wishes nonprofit organization offers great help to children suffering from life-threatening diseases primarily in New York City and other parts of the USA and the world in general. Your organization has been offering a shoulder to lean on for those children whose lives and dreams appear to have been completely shattered by diseases like cancer. Since the inception of Toast to wishes, the organization has been able to help on average 1000 children yearly. There is a need to increase this number to reach more children who are suffering in New York and other states here in the USA. Your organization hired me to have to review the available Toast to wish data then make recommendations on the most appropriate ways of increasing the revenue necessary to expand the firm’s operations and charity work. Comment by Annie Rhodes: Specify that this is in the NY area only.

(Identify) the challenges that you and your team were hired to solve

Toast to wishes has had a stagnated growth in terms of finance. The organization has been able to raise a total of $2.2 million over the last 7 years (Dolnicar, Irvine & Lazarevski, 2008). With this finances Toast to wish has only managed to touch the lives of between 900 -1000 children per year. The organization has also had its operations limited to New York and it 17 counties hence offering little or no help to children elsewhere in the country. Every charity organization as Toast to wishes aspires and dreams to touch as many lives as possible. However, this dream which Toast to wishes is part of is curtailed by limited funds. Your firm has hired me to come to check into these challenges and come up with solutions which upon implementation the firm will achieve its dream. On that note, I will give analyze the problems then come up with ways that can help expand the organization’s operations to other counties and states, increase the number of children that the organization impacts their lives and more importantly increase in finances. Comment by Jeong Bae: I am not sure where you are getting this information. Make A Wish Metro and Western New York serves this geographic region. Other regions are served by its affiliates. If this is true, please reference it, otherwise it sounds like this is irrelevant and detracts the reader.

(Gather Information) Share what sources were made available to you

In my research, I found that Toast to wishes does a good a job raising funds from its annual events. Cash collected from the annual dinner organized at the Marquee club in New York makes up over 70% of the total revenue received by the organization (exhibit 1). With this statistics, it’s right to deduce and say that the annual event is the main source of revenue. Statistics found in the Toast to wishes website indicates that the event attracts between 500 to 700 professionals in the New York. These figures were quite encouraging and disturbing at the same time. They were encouraging in the sense that it takes a good reputation and event organization to attract a crowd of professionals. Being able to assemble 700 professionals’ means that the Toast to wish has a good public image as well as management. On the other hand, the figures were disturbing in the sense that receiving funds from less than 1000 people means inelastic financing. In other words, funds will always be limited if the firm is to depend for money and donations from this limited number of people. Comment by Annie Rhodes: This event is not their main source of revenue. They chart might represent some other set of data. I learned this from here: https://www.guidestar.org/FinDocuments/2016/112/645/2016-112645641-0e4e4839-9.pdf Comment by Jeong Bae: Toast to Wishes is an event that is run once a year. I think you are confusing Toast to Wishes to Make A Wish (which is the organization that runs this event).

The other source of funding notably on your site is voluntary giving. It’s remarkable that you have given a chance for volunteer donors. Toast to wishes incredibly accepts donations from all credit cards brands. This is an excellent strategy to ensure the organizations tap the all possible finances from volunteer donors irrespective of their credit cards brands. The feature also gives room for monthly or regular donations and one time donations. Comment by Annie Rhodes: Stay on point. This voluntary giving might be referring to ‘Text to Give’ donations which are more like responsive or on demand giving.

From the site, it’s notable that the organizations don’t receive any funding from the government. There is no history of government contribution since the establishment of the organization which is more than a decade old. The USA government has a kitty for charity organizations with a good track record, and that shows accountability of the funds they have been receiving. This indicates that the organization has been failed or has been reluctant to solicit funds from this source which is highly reliable. This is from the fact that the Toast to Wish qualifies for the funding and has a 5-star rating from the charity Navigator pertaining to the accountability of its funds. Financial data, history, and data also do not show any collaboration between the organization and famous American philanthropists. On that note, the Toast to Wishes has not all along not been funded by the philanthropists who are again a fine source of charity funds. Last but not least Toast to wishes shows no relationship with foundations which is yet a potential source of funds. Comment by Annie Rhodes: This background here seems to take you off topic. Does this have to do with the data? With what we’ve learned and what we are recommending to them?

From that information it’s evident that Toast to Wishes has had limited finance because of having limited sources of funds. Two sources of funds are too little to raise the money needed for expansion of its activities or increase its revenue. On that note, I recommend that the organization diversifies its sources of funds. The organization has an excellent opportunity of tapping funds from other reliable sources like the government and coming up with measures of attracting new donors and philanthropists as well as strategizing on how to increase funding from its traditional sources. Comment by Jeong Bae: Again, Toast to Wishes is a fundraising event, in which the primary drivers of revenue are ticket sales, silent auction, and donations. Because it’s an event, it may not be feasible to diversify the revenue.

Before zeroing down to the specific strategies and recommendations that the firm can adopt, I did review the data decision-making framework.

Identification of the problem Comment by Annie Rhodes: Great that you followed the decision making format however I would add more details here. What did you learn when you answered these questions?

Is it possible for Toast to Wishes diversify its sources of funds to increase its total revenue and be less dependent on its annual fundraising event? Additionally, is it possible to increase the revenue gotten volunteer donor?

Analysis of information Comment by Jeong Bae: You should list your analysis.

What are the lessons acquired from the data on the site and financial history of Toast to Wishes organization?

Developing options

What are the way and strategies that Toast to Wishes can adapt to help it raise its revenue from the current level??

Assessing options

Does the organization has an option to increase its funding through its annual party event? Should I suggest the organization expands or increases its grants and funds sources? After careful consideration of all the possible and relevant sources I recommend that first, the organization should look for several governments as well as foundation grants. The importance of this would be that it would increase the revenue and in case a source of grants flops or fails to give it contribution on time the organization will still efficiently run given that it will not be dependent on a particular source. Comment by Jeong Bae: While these are indeed options, they must at the same time be realistic and viable. For example, taking the event out of the metro area is an option, but it is a very risky move and there needs to be a very strong reason to do so.

Secondly, it is wise if Toast to wishes doubled or tripled it events. The management can create other events which will attract donors as it annual party event does.

The other option I assessed is taking this annual event out of New York. Toast to make a wish have always been holding this event only in New York City hence limiting it to the New York community only. However, funds gotten from the event are used to help children who are out of New York. With this reasoning, it's wise if the event is taken to other neighboring cities.

Decision making

What does the organization need to do and which are the risk associated with adopting the recommendations. I came up with various options and assessed each to that to make an informed decision when picking the best of them all. This entailed evaluation to do with the increase in the number of events and seeking government and foundation grants.

Implementation of the decisions

What are the most crucial steps to take and their risks? Answered below

After assessing how the annual event is planned and organized it was apparent that the event is costly to organize in terms of cash and time. The organizing manager reports that it takes six months to prepare and have the party ready or set. In a set of 6 months, a lot of expenditures are incurred to pay for different logistics like transport and purchase of different good things. This makes event preparation consume a significant amount of money from the total previously raised. The return to investment of the event is small since a substantial amount is saved to prepare for the next party and only a small percentage goes to fund the primary objective that is helping children with life-threatening diseases. (exhibit 2) From that observation it clear that that to increase Toast to Wishes revenue the organization must give attention to 2 KPI’s. The KPIs are the acquisition of new donor, application for government funding and diversification of revenue sources. Shifting focus to these 3 aspects means that the firm will be able to track its success with the number of new donors it's able to get, the amount of funds it gets from the government and the number of revenue sources.

Detailed recommendations on the KPI’s Comment by Annie Rhodes: Provide us with very specific KPI examples for this section. You say the KPIs are smart but what makes them smart? Define them, show us how to track them.

Diversification of sources of funds

To increase the number of funds sources I recommend that the organization focusses on three aspects. That is increasing the number of special events, seeking government funding and taking the annual party into neighboring cities or states

The organization holds only one party event in a year an occasion that forms the backbone of Toast to wishes. Increasing the number of these events to two or three is an excellent idea given that it may be able to triple or double or the amount raised by the party. This of will have the desired outcome in the organization of increasing revenue. Additionally, this is a measurable KPI which can help the organization track its progress.

Apart from increasing the number of events, it’s important that the organization seeks funding from the government and other foundation. There are no stringent requirements for charity organizations to receive government funds. Some of the requirements are applying for the funds and submitting necessary documents. In the event of success, the Toast to wishes would have its revenue rise. Still on that, there is a myriad of foundations in New York and in the USA in general all which have different courses and objectives. Toast to Wishes can research or look for foundations whose aim is to improve children’s welfare. After finding them, the organization can apply for funding from the organizations. Most probably after checking the Toast to Wishes track record two or three might decide to fund the organization to see what impact the organization would make with the money on children. Whatever, the number the organization will have its revenue increase. Toast to wishes will able to measure this KPI’s by the number of organization it’s able to convince to fund it.

Merits

Securing government funds would mean that that the organization is certified, registered and accountable aspects that increase confidence in the donors (Salamon, 1999). When donors have faith in a charity organization, it will not be a big hustle to solicit funds from them. Comment by Jeong Bae: Toast to Wishes is a fundraising event. It would be almost impossible to secure government funding for the event.

Increasing the number of special events would minimize the cost of organizing and planning the events. The annual party takes 6 months to plan which a period that consumes a lot of money but in the event the time is cut short the management would be obliged to use less time hence fewer expenses.

If the annual party doesn’t raise enough money, there will be other chances and sources to get the cash.

Demerit

Acquiring funds from the government takes a considerably long time

The increase in the number of special events may lead to low attendance

Acquisition of new donors

This is a smart KPI which can be used to tell the success of a charity organization. This is done by examining the rate at which the firm is able to acquire new donors. It the organization’s duty to work to devise ways of getting new donors. This can, for example, be done through adverts in different media or carrying out an online campaign. The adverts or descriptions of the organization’s activities can be placed in the local dailies or on TV. Toast to Wishes charity organization can also opt for online marketing whereby it can zero down to email marketing or social media marketing (Anheier, 2014). Acquisition of new donors would definitely help to increase the Toast to wishes revenues.

Merits

Online giving or charity contributions is one of the most popular methods to use and a major way through which charity organization acquires funds.

Acquisition of new donor would help increase monthly and voluntary contributions hence development of a stable or reliable source of funds

Demerits

There are many charity organizations competing for donors and funds online hence there is a possibility of being competed out.

Organizing the annual party in other cities

Toast to wish is a reputable organization and the big party it holds once a year has earned a good name for it. It would be a good idea if the organization decided to take the event in other cities where it does also help vulnerable children therein. This would help improve the publicity of the Toast to wishes outside New York and help in the increase of revenue (Young & Salamon, 2002).

Merit

The major benefit is that it provides an opportunity to acquire new donors

Demerit

The move would increase the planning and organizing expenditure of the organization.

Conclusion

From the analysis it clear that Toast to Wishes has a wide spectrum of opportunities to tap in. The problem of low revenue can easily be sorted using any of the analyzed methods that is acquiring new donors, seeking government funding and increasing the number of special events. Selection of the best method, however, lies with the management since some considerations like cost and manpower have to be made. Comment by Jeong Bae: While your analysis is for Toast to Wishes, your recommendations lean to actually focusing on other strategies, such as raising gov’t funding and holding other events. Thus there is a big disconnect between your recommendations and the topic.

References

Anheier, H. K. (2014). Nonprofit organizations: Theory, management, policy. Routledge.

Dolnicar, S., Irvine, H., & Lazarevski, K. (2008). Mission or money? Competitive challenges facing public sector nonprofit organizations in an institutionalized environment. International Journal of Nonprofit and Voluntary Sector Marketing, 13(2), 107-117.

Salamon, L. M. (1999). The nonprofit sector at a crossroads: The case of America. Voluntas: International Journal of Voluntary and Nonprofit Organizations, 10(1), 5-23.

Young, D. R., & Salamon, L. M. (2002). Commercialization, social ventures, and for-profit competition. The state of nonprofit America, 423-446.

Exhibit 1

Exhibit 2

Toast to wishes finances

Sales Marque party 70 voluntary contributions 20 monthly contrinutions 18 other sources 2 8.2 3.2 1.4 1.2

Toast to wishes expendture

Sales Administrative cost 15 party organizng expense on charity work miscelenous 8.2 55 30 1.2 Column1 Administrative cost 15 party organizng expense on charity work miscelenous 55