Financial management and fundraising challenges of the Red Cross

Managing Non-Profit Organisations

Organizations Management

Voluntary income

1,060,591

1,104,161

1,086,645

1,076,654

1,096,758

Voluntary Expenditure

1,119,428

1,065,439

1,246,875

1,178,876

1,167,567

Income from charitable activities

1,060,591

1,104,161

1,086,645

1,076,654

1,096,758

Expenditure on charitable activities

1,119,428

1,065,439

1,246,875

1,178,876

1,167,567

Income from trading activities

-3,042

-5,9436

-3,986

-2,986

-2,753

Expenditure on trading activities

Voluntary income detail

List top 5 sources of voluntary income eg individual donations, corporate donations

Cash and short-term deposits

310,451

387,494

345,876

287,564

2,986,562

Investments

77,971

74,999

75,965

67,967

68,986

Derivative financial instruments

3,323

1,987

2,095

2,983

Account receivables

119,702

141,093

109,586

121,986

115,092

Prepayments

14,590

13,393

12,978

11,092

12,096

Fundraising challenges, problems, or priorities

It is obvious that the economic and financial crisis has significantly affected the incomes of the Red Cross. The effects of this situation are reflected by the organizations' activity. Therefore, the most important challenge in the case of the Red Cross is represented by maintaining the level of its incomes.

2010

2009

2008

2007

2006

Total income from all sources

1,060,591

1,104,161

1,086,645

1,076,654

1,096,758

Total expenditure of all kinds

1,119,428

1,065,439

1,246,875

1,178,876

1,167,567

Total Funds to carry forward

996,834

985,456

825,952

683,782

835,268

Unrestricted Funds to carry forward

996,834

985,456

825,952

683,782

835,268

2010

2009

2008

2007

2006

Voluntary income margin

5.26%

5.18%

5.21%

5.16%

5.32%

Trading income margin

5.18%

5.21%

5.16%

5.16%

5.30%

Charitable activity deficit

The information presented reveals the fact that the Red Cross has a constant financial activity that allows the organization to develop medium term and long-term objectives. This is helpful in developing successful strategies. The company's financial situation allows to reach these objectives (ICRC, 2010).

Campaign

The injustice that the campaign intends to address is represented by violence towards children in developing countries. The Red Cross subsidiaries in these countries have reported an increased number of violent abuses towards this category. The campaign addresses physical, verbal, and emotional abuse on these children. The fact that the authorities in these countries were not successful in addressing such issues requires the help of the Red Cross and of the specialists that work in this organization.

The vision that this campaign is based on is represented by building a healthy, safe, and secure environment for children in these countries. This is because the development of these children is significantly influenced by their environment. If they are confronted with a violent environment, they are likely to consider that violence is normal. This means that they will reflect the same violent behavior on others, which is likely to develop such problems in these countries. Therefore, it is important that they understand the influence of violence on their behavior.

The most important objectives of this campaign are represented by:

Increasing awareness on this issue

Improving the activity of authorities in such situations

Changing violent behaviors

The resources that the campaign is based on are represented by supporters, reputation from other campaigns, and the help of authorities. It is important that the campaign benefits from an increased number of supports. This is because they can help promote the campaign and its objectives. The reputation from other campaigns is intended to attract a higher number of sponsors. The success of this campaign relies on the relationship between the Red Cross and the authorities in these countries.

The targets of this campaign are represented by:

Authorities

People that observe violent behavior in others

Management issues

The most important management issue is whether to focus on social networks in order to promote the campaign. Although there are numerous advantages to using such a strategy, this might be difficult in certain developing countries. This is because the Internet usage can be reduced in some of these countries. This could significantly affect the success of this strategy (Guion, 2008).

Another important management issue is represented by developing a successful relationship with authorities. The authorities in some of these countries might not agree with the Red Cross organizing such a campaign, because it might affect their image to the public. Therefore, it is important to improve this relationship because it can lead to increased promotion.

Reference list:

1. Annual Report (2010). ICRC. Retrieved March 9, 2012.

2. Kimbarovsky, R. (2009). 10 Small Business Social Media Marketing Tips. Retrieved March 9, 2012 from http://mashable.com/2009/10/28/small-business-marketing/.

3. Guion, M. (2008). Internet Usage Gaps in Developing Countries: Challenges and Solutions. InfoTech. Retrieved March 9, 2012 from http://it.tmcnet.com/topics/it/articles/36595-internet-usage-gaps-developing-countries-challenges-solutions.htm.