Shad Valley International: Sustaining the Program While Maintaining Accessibility
(6 pages of text)
In 2016, the director of finance and operations for a non-profit organization faced an important decision. Her organization offered an in-residence opportunity for high school students who excelled academically, but the organization’s cash flow for the upcoming year was in jeopardy. The director was considering increasing registration fees and planned to prepare cash budgets for the upcoming fiscal year for the program and for the organization. She knew that her decision had to be in line with the organization’s values and goals, but she also felt that raising fees might alleviate some of the program’s financial strain.
The program was already supported by alumni and many company and government sponsors. The director had to make a presentation to the board of directors and ensure her decision would maintain the quality of the program and its candidates and also help the organization’s cash flow.
This case is suitable for use in undergraduate-level programs in courses on introductory managerial accounting or finance, with a focus on the topic of cash budgeting. After completion of the case, students will be able to perform the following:
- Prepare and analyze a projected cash budget and understand its importance for management decisions.
- Assess some of the challenges non-profit organizations face (compared to for-profit businesses).
- Make and defend a business decision based on qualitative and quantitative analysis.
- Demonstrate the importance and need of all decisions to fit with an organization’s
- Apply basic Microsoft Excel functions (e.g., SUM, SUMPRODUCT, ROUNDUP). This objective is optional, depending on the students’ background and experience.
Canada, Small, 2016
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