problem:
YOUth is a not-for-profit organization that supports at-riskyouth in a small Northern community through a crisis center,outreach initiatives, and after-school activity programs. Theorganization has implemented triple-bottom-line accounting, resultsare reported quarterly to stakeholders.
Financial performance is concerned with results as compared tobudget as well as with measuring overhead costs as a percentage ofdonations and grants received to ensure that an appropriateproportion of total funds is spent on programs directly. Socialmetrics combine input-based approaches (such as the number ofcontacts and the number of youth taking part in programs) andoutput measures (such as youth crime rates in the community).
The environmental metrics currently focus on results achieved byrecent initiatives to clean up schoolyards and parks to ensuresafer play areas for children in the community. Last week, a newpotential donor approached the organization and met with Saanvi,the executive director, explaining that his daughter had beenhaving issues at school with bullying and had received help fromYOUth’s after-school program. The potential donor is a wealthybusinessman who owns a furniture manufacturing plant, and hequestioned the triple-bottom-line approach. The businessmansuggested that the organization should be monitoring only itsfinancial results, because, as he put it, “if you can’t keep thefinancials working, you are just going to sink. The rest of thosemetrics are a waste of time, and I don’t like supporting wastedtime.”
The businessman is coming to the office again next week, andSaanvi, unsure what the businessman may want, has asked you to puttogether a presentation to explain to him the merits of thetriple-bottom-line methodology for YOUth.
Required: Use the ACAF Method to analyze this situation.
Specifically: a. Assess the situation.
b. Identify the issues.
