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Magnolia Therapeutic Solutions

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RUNNING TITLE: MAGNOLIA THERAPEUTIC SOLUTIONS CASE STUDY

Magnolia Therapeutic Solutions Case Study

Tamara Owens

University of Phoenix

Financial Management in Human Services/BSHS 373

Frieda Flowers

October 28th, 2013

In the Magnolia Therapeutic Solutions case study the board member made decisions based on what if’s. Working in the financial area in the nonprofit industry I have seen decisions like this come about numerous of times. The board decided to approve a budget and spend money on a grant which they received the previous year and was almost sure that they would be rewarded on that grant again in the future. The boards decision caused the organization to take a vital financial fail because the grant was not renewed so this caused layoffs and other organization cut backs. If I was on the board I would have definitely rejected the decision to spend money which was not approved or in present. Majority of grants are city, state or government funded. This means there are certain stipulations which may come with getting approved for those grants and sometimes the funds are not always available. Magnolia was a new organization which was growing at a steady pace. The jump and demand of services happened because of a major event “911” which had occurred in their city. It was great that Magnolia was able to assist the victims and their families with PTSD. Which this is why they receive the grant they received to increase staff and services. However, I would have based staff and the services just on temporarily needs. These are the facts of organizational infrastructure and culture my decision was based on.

The main problems which Magnolia suffered was planning and basing their budgets off funds which did not exist. The board seen the business take a major leap and grow but forgot that leap took place because of an major event which was providing

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