Mini report - Bài mẫu

REVENUE OF THE WISHKIDS FOUNDATION
1. INTRODUCTION
This report was commissioned by the director of the WishKids Foundation to
investigate the problem of this organization’s revenue. The fact that in this year, the
government will not renew the US$500,000 grant for the organization, equivalent to
39% of its revenue of approximately US$1,280,000, would lead to a huge problem to
the WishKids Foundation’s income sources. This issue may result in the situation that
many disadvantaged children will be left in poor condition that make them give up their
dreams.
This report will reveal the challenge in the WishKids Foundation’s income because of
government’s cut back on funding and analyze its expenditures in the prior year to find
out solutions ahead to those problems.
2. FINDINGS
This report’s findings have been compiled from an analysis of the WishKids
Foundation’s revenue and expenditure in the prior year that are arranged by different
categories. The government’s cutback of US$500,000 on grant would result in a huge
deficit for the organization that causes many children can not get enough help to
achieve their goals. The WishKids foundation should find out right solutions to this
problem as soon as possible, either improving its income by some ways or reducing the
expenditure. There are three kinds of expenditure to consider: capital expenditure,
revenue expenditure and funding for children.
2.1. Capital Expenditure
This kind of expenditure is the amount spent on the organization’s basic systems
and infrastructure, it does not bring about change in the profit of the organization.
This expenditure needs being minimized as much as possible. There are two
sections in the Capital Expenditure: Administration/salaries and Office rental.
While Office rental accounts for a small amount and it seems to be difficult to be
changed, the considerable figure is for Administration/Salaries with a very high
expenditure of nearly US$370,000 and it can be reduced. Therefore, the
organization should minimize Administration/salaries expenditure by reducing the
salaries and recruit more volunteers.

2.2. Revenue Expenditure
The Revenue Expenditure has two categories which are Purchase of merchandise
and Fundraising and promotion, they can bring about the increase in the income
sources. Regarding Purchase of merchandise, the sums spent on this section was
just US$90,000, while the revenue from sales of merchandise was up to nearly
US$180,000, equivalent to 14% in its income. Because the sale of merchandise
brings a great benefit to the organization, its profit should be increased by reducing
the expenditure of raw material but raising the number of souvenirs. Moreover, if
the fundraising activities and promotion are considered to be developed, they will
bring about increasing in sales of souvenirs by some fundraising events which
have a large number of people taking part in.
Besides, if Fundraising activities and promotion are expended on, they will bring a
huge profit through Fundraising events, Donations and bequests and Corporate
sponsorship. In the prior year the surplus from those funds was up to roughly
US$300,000. However, the section of Corporate sponsorship merely brought a
small profit of more than US$100,000, equivalent to 9% of the revenue sources.
Therefore, it needs being increased significantly besides the revenue from
Donations and bequests and Fundraising events.
2.3. Funding for Children
This term of expenditure plays an important role in the operation of the WishKids
Foundation. Because the main purpose of the organisation is to help disadvantaged
children get over the poor condition to fulfil their dreams, the amount funded for
them should increase, or at least remain stable. Therefore, the sums received
through fundraising events, donations and sponsorships should be totally spent on
Granting wishes for children. If the organization increase Granting wishes for
disadvantaged children, it also gains more reputation and that fact would be an
appeal to donators and sponsors.
3. CONCLUSION
The shortfall on the organization’s income because of the government’s funding
cutback of US$500,000 would lead to the situation that many people in need may not

receive enough help to change their life. The organization should take right decisions to
solve the problem as soon as possible, either by reducing some expenditures or
increasing sources of revenue by some ways.
4. RECOMMENDATIONS
• Administration/Salaries should be minimized by two ways. The first one is to reduce
the salaries of staff by asking them to cut the work time. For example, who work
fulltime may just work in the morning shift or the afternoon shift and they should be
required to finish their work as soon as possible in one shift. Moreover, there should
be one staff taking the tasks of two staff but receive a salary increased by a half. The
next solution is to recruit volunteers, they should be encouraged to take part in the
activities of the organization by so many soft skills and hard skills they can get from
this experience.
• The Purchase of merchandise can be minimized by the organization by changing the
material to make merchandise. The souvenirs should be made from recycled
material gathered from people, especially who want to do charity but do not have
enough money to donate. It is not only an effective way to reduce the expenditure
spent on material for merchandise but also a meaningful way to send the message of
protecting the environment. In addition, the sales of merchandise should be
increased by raising the number of souvenirs created and making them attractive.
Fundraising activities and promotion should be expended on. There should be more
fundraising events to call for donators and sponsors. There are expectedly many
people and companies wanting to take part in charities so that the income can
increase sharply by this way. However, the revenue from Corporate sponsorship
seems to be so low, while in this time, there is a great number of companies wanting
to improve their fames by charities. Therefore, there should be advertising activities
and promotion champaign to attract their attention.
• The expenditure on Granting wishes should be increased as much as possible by
using the amount through fundraising events, donations and sponsorships to spend
on this term totally. When they get success in funding for a large number of
disadvantaged children, the total figure of expenditure on Granting wishes should be

spread out to attract attention from potential donators and sponsors.