Strategic audits and their organizational effectiveness

Non-Profit Org

Current Situation

The current situation for the non-profit used for this report is that the organization in the past year grew by an overall rate of 10% in terms of membership. This ten percent increase resulted in a gross revenue increase of approximately 25%. Additionally the rate at which the members were charged for their yearly fees increased from $350 per year to $375 per year. The fee increase provided additional revenue of approximately 9%. Sponsorship fees for the year provided another $11,500 in revenue. Expenses for the year ran at approximately $600 per member (this included uniforms, balls, bags, traveling costs, league and tournament expenses). Needless to say the club lost money during the last fiscal year. The resultant fee increase was (in part) an effort to stem the flow of those losses. Additional marketing to bring in more members worked (see the 10% increase in membership) and the since the fees only covered the spring season, fees were also charged to cover the cost of the fall season. Members who played in the fall, had to cover all costs without the added revenue provided by sponsorships. It is hoped that the fall season will open the eyes to the entire membership as to the 'real' costs of being a member. With this new understanding will come an increase in fees both for fall and spring of next year, that will bring the club out of the red, and into the black.

Board of Directors

The Board is comprised of 4 voting members and two non-voting members. The President is a non-voting member as is the Director of Coaching.

The Director of Coaching and the coaches are paid employees and are not voting members of the Board. The board members do not own stock as it is a non-profit organization and it is run by volunteers. The Director of Coaching and the coaches are the only paid members of the club. Members of the Board are all volunteers who are voted on by the parents of the players on a yearly basis. There are no international operations and none of the members of the Board have international experience in running or managing non-profit organizations. The Board is concerned about the club's viability and are actively seeking new revenue streams as well as the feasibility of raising the yearly rates charged to the members of the club. The club recently hired a new Director of Coaching that is charged with the responsibility of enhancing the viability of the club. The Board looks to the DOC to complete revamp the program, mission statements, goals and objectives of the club. Much of the change will be brought about by making drastic alterations to the players/parents perceptions of how the club is managed and how fees are charged and collected. Policies, bylaws, and requirements are being rewritten in accordance with the new mission statement and the more modern goals and objectives set out by the club and the Board. These significant alterations will enhance the financial strength and viability of the organization and should place the club on a stronger footing in all aspects. Other areas of improvement will also be looked for and implemented in order to ensure the club's future is stronger than the club's past.