Financial Analysis American Red Cross

Introduction

The international Red Cross is known as a non-profit organization which is mostly known for the emergencies occurrence on the basis of controlling, planning and the management process. Since the organization do not usually sell any services or products for profit, then it always has to manage the budgeting process very economically so as to ensure that all the crisis and the emergencies are handled well.

Revenue portfolio of Red Cross organization

The fundraising and the portfolio management usually manages donor's portfolio with the intention of retaining and also strengthening the relationship of donors. They are also responsible for the annual minimum fundraising which has a tying goal to blend the revenue portfolio as it is specified in the standards of performance (Milne, 2018). The revenue portfolio also develops a collective of the management of donors while the management plans that results in a well interaction through the phone and emails. The revenue target in most cases increases because of the main disasters occurrence.

Strategies for performance management

The Red Cross Organization has made a development since it is has established itself with a very effective change management strategy so as to be in a position to be effective with the management works of disaster management (Williams, 2018). The organization usually follows the decentralized structure of the organization with the branches all over and the international offices.

Capital budgeting approaches

The finance department of Red Cross Organization is reliant on the donations and fundraising by the private and public sectors. Most of the nonprofit organizations works for the well-being of the humanity which is based on the donations for fulfilling the financial desires. The Red Cross Organization was in a position to produce $23 million which is mostly through the disaster management celebrities. Budgeting for Red Cross organization which is involved in the disaster and humanitarian management is able to raise financial resources required on the basis of the financial needs. For instance, a lot of individuals started to give extra than the normal amount given to Red Cross and this led to raising more of the monetary resources. In the present situation of America, the country has been found to be in crisis since it has very high rate of inflation, very high level of unemployment and very low opportunities of starting a business. Those present scenarios have led to some restrictions of the financial resources for American Red Cross Organization.

Internal controls used by American Red Cross Organization

The current and modern internal management control in the non profit organizations has changed a lot. This is due to the fact that Red Cross has been working in a situation that can be very risky and has unexpected requirements of management control (Hutchinson, 2018). The current management internal controls in the current world have been associated with information technology. To be in a position to keep updated with the external environment, the modern aspects and risk management have to be always active with the present world information technology. The information technology helps the association to be always effective and always keep the internal market efficiency.

Opportunities for developing and securing financial resources

There is a thorough research done on American Red Cross Organization in the deals of programming and planning. It was said that the nonprofit organizations planned for the missions and visions. This opportunity is not usually programmed contrary to the organization’s values. The tactical planning and the programming process should be put accordingly with each other. The top management gives directions and approvals of the various programs. Also, the conduct of the programming and planning is based on the activities of the approved team. The possible clients are always involved in the programming and planning so that the contacts are developed on the fundraising and donations functions (Forsythe, 2018). The American Red Cross programming is in accordance to the training done by Bryson. They usually plan and work with the clear fields of operation. It is clearly seen that the American Red Cross had already made a plan for this before the occurrence of the main problem. The disaster was later approved by the board since it was in accordance with their vision and missions. In most cases, programming usually has its value in the whole world in the nonprofit organizations. This is seen as a way of managing in all the organizational aspects.

Investment policies and philosophies adopted in American Red Cross Organization American Red Cross Organization had already made a report publish and some online materials that have been proved of the struggle made against the disaster. Since the organization had planned well they were able to provide some 1400 centres of evacuation for roughly 450,000 evacuees. There was further than 68 million meals which were delivered to all the affected people since 1.4 million families who were in need of help were assisted in clothing, food and groceries. The American Red Cross Organization has a positive picture of making sure that the teams’ works together and living in harmony in the world. This was a promotion technic which was used by other revenue oriented societies of being together as one family. For instance when Nokia connects people in a way that it shows the integration of the market in the society. In a similar case, Red Cross also raised up with all the people and assisted them in attaining all their targets in lives (Ayer, 2018). Another tactic used by the American Red Cross Organization is the emotional behaviour through the means of advertising so that they are in a position of attracting the financial resources and donations for managing the organization. They were seen to be very operative in their tactic and the marketing techniques which was around 200,000 people who were ready to contribute in the American Red Cross programs. The management of the American Red Cross Organization is seen to be successful in the fight against all the disasters.

Conclusion

For all the other programs in American Red Cross Organization, it usually starts with planning. This is due to the fact that planning is very crucial for a non-profit making organization. Also, the American Red Cross Organization was also aware of all the disasters and aftermaths which can be termed to be very serious in a lot of individual families. The organization started the planning techniques from the start of the program initiative and the strategies of marketing so as to generate some donations and the charity organizations. Finally, all the programs held in the American Red Cross organization were defined as per the goals and mission statement. A lot of volunteers were given some training and registered so as to help all the affected people in the society.

References

Ayer, T., Zhang, C., Zeng, C., White III, C. C., Joseph, V. R., Deck, M., ... & Ozkaynak, Z. (2018). American Red Cross Uses Analytics-Based Methods to Improve Blood-Collection Operations. Interfaces, 48(1), 24-34.

Forsythe, D. P. (2018). The International Red Cross: Decentralization and its Effects. Human Rights Quarterly, 40(1), 61-90.

Hutchinson, J. (2018). Champions of charity: War and the rise of the Red Cross. Routledge.

Milne, R. J., & Robinson, A. G. (2018). Introduction: 2017 Franz Edelman Award for Achievement in Operations Research and the Management Sciences.

Williams, B. D., Valero, J. N., & Kim, K. (2018). Social media, trust, and disaster: Does trust in public and nonprofit organizations explain social media use during a disaster?. Quality & Quantity, 52(2), 537-550.