Magnolia Therapeutic Solutions Case Study

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Magnolia Therapeutic Solutions Case Study Magnolia Therapeutic Solutions case study reviews Magnolia Therapeutic Solutions (Magnolia) and the board’s budget decisions. Those decisions are then compared to the decisions I would have made. My opinion of the main causes behind the ultimate problems that Magnolia suffered is discussed, as well as what I would have done to avoid these problems. Differences in a nonprofit organization’s inability to thrive and a for-profit organization’s inability to thrive are addressed in regards to acquiring revenue, accruing expenses, and training of key personnel. Magnolia’s deficit in terms of risk management is reviewed. Magnolia’s Therapeutic Solutions Magnolia Therapeutic Solutions is a nonprofit organization in New York City that specializes in psychotherapy for individuals diagnosed with Post Traumatic Syndrome Disorder (PTSD). The organization began in 1998 with six employees. By 2000, its staff sized had grown to 34 and the organization was operating on an annual budget of over $1.3 million. It was performing well and had already received many prestigious awards and accolades for the services performed for NYC. When the devastating acts of terror happened September 11, 2001, the organization received a sizable one year grant to help meet capacity issues that resulted from the increased demand for services. More counselors were hired and administrative services within the organization were increased. Great success was enjoyed that year so when constructing the 2002 budget, Mary insisted on including the one year grant again, assuming it would be renewed. Furthermore, steeper demands were placed to raise even more money and all was approved by the organization’s board of directors. Personal Decision The decision the board made to approve the budget was a very risky one. I would not have agreed to such a risk. All

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