Magnolia Therapeutic Solutions Case Study

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Magnolia Therapeutic Solutions is a nonprofit organization that helps clients with Post Traumatic Stress Disorder (PTSD). This organization, located in New York, helps clients who have PTSD and was given a grant by the state of New York after the events of September 11th. Magnolia was given a one-year grant to provide extra help to the victims of this tragedy. After the year was over Magnolia proposes a new grant that includes the amount of the grant because the organization had hopes that the grant would be renewed. The city did not renew the grant that causes a shortage of $500,000 and the organization has to cut staff. Personal decision versus Board’s decision If I were on the Board of Director’s and was given this proposed budget that includes the grants from the previous year and anticipated grants I would not have approved the budget. The budget was made to include grant money that was not guaranteed to be given the following year. Mary did not take into account that she has already hired extra counselors and other administrative services. She should have made sure that the city was willing to renew their grant, before including this in her budget. As Executive Director, Mary should have taken into consideration that if the money was not made available she would not have the funding to continue paying the new employees. Although Mary’s intention was to continue helping victims of 9/11 she should have had a backup plan and budget that did not include that grants from the city or other grants she was only hoping to get. Main Causes The main cause for the budget falling short $500,000 was that she included monies she did not have already. Mary’s grant proposal was based on receiving grants that she had received the previous year. When creating a proposal budget it is important to only include money or grants that have already been approved or received.
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