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Organizational Analysis
Alecia
[Institutional Affiliation(s)]
Author Note
Organizational Analysis
The main purpose of this paper is to analyze World Vision International (WVI or World Vision), an organization in the category of 501 (c) (3). The approach employed is designed to make certain workings clear concerning the setup, structure, and culture of WVI. WVI is a not-for-profit organization and provides its services to about a hundred countries worldwide. The main focus of the paper is the discussion of WVI as an epitome of leadership in the not-for-profit sector. The reason why WVI has been chosen for this particular analysis is since it has been working in this sector for over forty years, a period in which it has experienced a tremendous level of growth. There are numerous changes, which have been seen in the non-profit industrial sector in the recent past as a result of competition. In turn, this competition has led to an overall shift in funding patterns. The shift in patterns has pushed many not-for-profit organizations in a suffering zone due to issues related to their management and funding.
World Vision aims for the betterment of children as the means for eradicating poverty. The institution funds numerous initiatives that specifically target children to help society. They do this with the argument that when children are empowered, the entire society goes towards empowerment. The institution runs various initiatives in areas ranging from education, health to improvement in emergency responses. Through such initiatives, children in their areas of operation are empowered to help their society after receiving their education. The mission of this institution, as shown on their website, is: “World Vision is an international partnership of Christians whose mission is to follow (the teachings of) our Lord and Savior Jesus Christ in working with the poor and oppressed to promote positive human transformation, seek justice and bear witness to the good news of the Kingdom of God" (World Vision, 2019). From the mission statement, it is clear that the institution aims at helping societies while at the same time spreading the light of the gospel.
World Vision is an institution that was established in the year 1950 by Dr. Bob Pierce. Dr. Pierce formed the institution after serving in China and South Korea, where he saw poor and helpless children who were suffering greatly due to a lack of resources and political turmoil in their countries at the time. After founding the institution, he would remain at the helm of the institution for over two decades. According to its website, the World Vision Institute currently has a presence in nearly a hundred countries and has over thirty-nine thousand members of staff (World Vision, 2019). Their key agenda has been to help eradicate poverty by focusing on the well0-being of children who are suffering anywhere in the world. By supporting initiatives such as access to quality education, access to clean drinking water and electricity, the WVI has managed to impact many lives positively, hence there is a need to study it. The organization is currently led by the President and CEO, Kevin Jenkins, who works with a border aims to champion the vision and mission of the organization (World Vision, 2019). For the implementation of its various programs, the organization has a governing council at its global center and a similar structure is present as far as its country offices are concerned.
As mentioned, World Vision currently has a presence in nearly a hundred countries and a staff of over thirty-nine thousand. The institution is still targeting to end the various means of suffering in society and is aiming to eradicate poverty by targeting the well-being of children. The institution also has a highly efficient emergency response unit that helps societies when they are hit by a catastrophe. WVI believes that children are the most affected section of society when a disaster happens and therefore it works towards helping them as a priority. To date, the firm has been able to sponsor over three million children. Also, over three million people now have access to clean drinking water and the organization has also managed to respond to over a hundred and seventy emergencies (World Vision, 2019). In a brief period, it is noticeable how the working of this organization has started a spiral effect on society as children are helped to climb out of the state of poverty.
Financials, Market, and Demand
WVI coordinates with over thirty-nine thousand staff members in about a hundred countries. The staff is responsible for shepherding funds from their means of income to more than a hundred million children and their families in financial difficulties. Its offices all over the world raise the amounts required to support the numerous initiatives of WVI, which are used for helping the communities in the different parts of the world to overcome their difficulties (World Vision, 2017). At the local level, WVI implements and coordinates their local agencies in an orderly fashion while simultaneously inspiring joy by transforming the lives of the children.
The organization is highly dependent on private funding from its numerous donors. The funds collected through this type of fundraising are used in restocking the people whose livestock has been stolen or lost due to drought or other natural calamities. One of the principal donors of WVI includes the United States Government itself. It helps WVI by the provision of funds and services as is the need for the situation. For example, in Zimbabwe, World Vision grants are being implemented through the personnel of USAID. One of the projects being funded by World Vision in Zimbabwe is gender-based violence and it is a project that will span 5 years. The various activities that are being offered under this project include the strengthening of the institution of police, judiciary, as well as the provision of medical services to the aggrieved.
WVI maintains financial autonomy and sustainability by holding secure investments with a guaranteed fixed rate of return that exceeds inflation rates. The investments include securities in brokerage firms, securities held in trust, and unliquidated donations in the form of various securities and assets. WVI’s financial revenue is also comprised of donor-advised funds and designated funds. The funds are only recognized as assets after they have been contributed, and are only used for the designated services, which convinces the donor to keep donating for the progress of their cause of helping children.
Although WVI holds the final authority on the utilization of such funds as per its needs, it ensures that any usage restrictions set by donors are duly fulfilled. Tangible assets are reported at estimated fair value less estimated depreciation. WVI publishes the annual audited Consolidated Financial Statements with a detailed Statement of Cash Flows that elaborates on all cash-related activities conducted throughout the year for public scrutiny. Financial management is also clearly reflected in the consolidated comparative statements of financial position (SOFP), which help the reader identify annual changes that have been incurred in the course of their business performance. Potential Challenges of the Financial Operations.
World Vision is currently faced with numerous challenges that range from ethical to financial problems. These problems hinder the smooth progress of the many projects that are being administered under the organization. The most challenging point that is being faced by the organization is due to its religious orientation. Most of the staff of World Vision are Christians by faith and they find it difficult to provide humanitarian aid to people with a different faith (World Vision, 2018). Failure to provide services to such a community is not tolerated under the mission statement of this organization as there are children in the community whose survival is more important than their religious beliefs. They may not know religious difficulties and differences, as all that they need is just help from the organization. Other challenges that are faced by the employees of World Vision International when they are required to offer humanitarian services to children in the countries that are stricken by internal conflicts such as Syria or Afghanistan.
The operations of World Vision International are also hampered by the sheer increase in the number of individuals who require assistance. The number may be much higher than the number that the organization can handle concerning their resources and capabilities. WVI faces numerous challenges mainly due to the prevalence of various religious faiths in the different parts of the world. Despite these numerous problems, WVI is putting more effort to overcome these challenges for the sake of the betterment of the world as a whole.
Economic Legislative Changes
Unlike organizations that are driven by their motives for-profit, nonprofit entities are required to prepare a Statement of Functional Expenses under the Generally Accepted |Accounting Principles (GAAPs) of the Financial Accounting Standards Board (FASB) (Worth, 2018 p.510). These statements break down the operating expenses of the firm and explain how where expenses have been incurred for scrutiny by stakeholders and the general public. The report can be used to develop the financial ratios that are required to assess the management’s efficiency and the effectiveness of fundraising efforts. World Vision Inc’s Statement of Functional Expenses are broadly classified into two border categories. First is the list of its several program services; international programs, domestic programs, and public awareness and education campaigns. Second are the details of its supporting services; management and general, and fundraising. Each of these entries is further classified into constituent headings such as salaries and benefits, printing, travel and depreciation among others to provide a more concise picture of its expenditure to the people who may have a concern.
In short, we can observe that the mission of this organization is a true and just one. Also, the idea of helping children can directly help to raise a general of empowered and religiously tolerant people that would help to contribute to global peace. Also, it is generally observed that all the problems in the world are due to a lack of access to resources in the developing part of the world. Furthermore, there is transparency in all its financial operations. Overall, World Vision International is a comprehensive case study if the economical workings of an International Not-for-profit organization need to be studied.
References
Charity Watch: World Vision. (2019). Retrieved from https://www.charitywatch.org/charities/ world-vision
Hassanzadeh, M., Silong, A. D., Asmuni, A., & Wahat, N. W. A. (2015). Global leadership competencies. Journal of Educational and Social Research, 5(2), 137.
Renz, D. O., & Herman, R. D. (Eds.). (2016). The Jossey-Bass handbook of non-profit leadership and management. John Wiley & Sons.
World Vision. (2019). 2018 annual report of the World Vision International. Retrieved from https://www.wvi.org/senegal/publication/annual-report-2018
World Vision. (2018).2017 annual report of World Vision International. Retrieved from https:// www.wvi.org/livelihoods/publication/visionfund-annual-report-2017
Worth, M. J. (2017). Nonprofit Management: Principles and practice (4th ed.). Sage Publications.
World Vision. (2011). Accountability Report of the World Vision https://www.wvi.org/publication/accountability-report-2011
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