ADMN 404 ASSIGNMENT 3
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Athabasca University, Athabasca *
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Apr 3, 2024
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Compassion Canada
Executive Summary
Compassion Canada is a Canadian Christian charity helping children worldwide escape a life of poverty through providing education, healthcare, food, religious teachings, and guidance. Compassion Canada’s main goal is to eliminate childhood poverty in the name of Jesus Christ. Founded in 1963, located in London Ontario with current president and CEO Allison Alley, 86%
of funds raised going to the cause, Compassion Canada has a great reputation. Its main source of donations is through their child sponsorship program where donors can choose a child and become their sponsor and write letters among other things. Compassion Canada also helps with disaster relief when needed. With the increasing natural disasters globally and rising inflation in Canada and abroad, Compassion Canada will need to gain even more donors in order to meet the
increasing needs. The external environment analysis revealed that
The internal analysis showed us that The three strategic alternatives Introduction
Compassion Canada is a Canadian (branch) of an international aid charity which was founded in 1963 that aims to eliminate child poverty in the name of Jesus Christ. Compassion Canada is a 1
Compassion Canada
brand of Compassion International which as branches all over the world and serves 2 million children in 25 countries. Compassion Canada’s president and CEO is Allison Alley and the charity is headquartered in London Ontario. Compassion Canada receives most of its funding from sponsorships and through its child sponsorship program where donors support an individual
child throughout their education. There is a set monthly donation amount and donors can make one-time donations for extra needs, gifts for birthdays and Christmas and gifts for the child’s family. Compassion Canada also participates in disaster relief and other programs such as education and clean water. Compassion Canada’s main program is their child sponsorship program and 86% of their total program spending is spent on that. In F2021, Compassion Canada spent 86% of total program spending on
child sponsorship
. COMP’s sponsorship program aims to provide education, healthcare, food, religious teaching, and personal guidance to children in poor communities. The charity distributed 15,996,050 food packs to children and their families between April 2020 and June 2021. In F2021, COMP bought
cows for 86 families of sponsored children in Rwanda to provide them with food and an income source. During the year, it also helped 1,030 Colombian families establish home gardens and raise small livestock. The charity provided 803 of these families with 30 hens each.
The charity spent the remaining 14% on its various other programs. In F2021, Compassion Canada provided temporary shelter for 12,000 families in Haiti after an earthquake had destroyed
their homes. It also distributed 2,508 emergency food packets to those families.
Mandate
Compassion Canada’s mission statement is “to release children from poverty in Jesus’ name” (cite). Compassion Canada’s visions and goals are to “seek to develop children in all different aspects of their lives-their minds, bodies and relationships-while equipping local churches to share the love of Jesus with them.” (cite)
Compassion Canada’s core values and guiding principles are:
Integrity
Stewardship
Dignity
Excellence
Discernment
Christ Centered
Church-Driven
Child-Focused
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Compassion Canada
Compassion Canada has many stakeholders. Since the charity is not traded on the stock market, there are no shareholders as stakeholders. Internal stakeholders include the charity’s employees and volunteers as well as board members. Internal stakeholders also include the numerous donors
and sponsors both individual and corporate sponsors. Others include foundations providing grants, and of course the beneficiaries. External stakeholders include suppliers of any products or food distributed to children and families as well as churches and local communities. Without these suppliers, Compassion Canada would not be able to distribute much needed essentials to the communities it aims to help. These suppliers may have leverage power depending on where they are located. If suppliers
are in the impoverished countries, they are often limited and brining in supplies can be more costly and more difficult depending on the laws and local government regulations or corruption. Explain impact External Analysis
Competitive forces
There are over 170,000 charitable and non-profit organizations in Canada. 86,000 are registered charities (PROOF). This means that Compassion Canada is competing for donation funds from the Canadian population to achieve their goals and objectives. The average amount of donations given by Canadians a year is 10.6 billion dollars (cite sector source). That means 170,000 charities looking for a portion of those 10.6 billion dollars. Compassion Canada received 73.9 million dollars in 2021. (cite)
Compassion Canada and other charities may not be selling a service or product however they are selling a mission or programs to donors and volunteers. This means Compassion Canada is not only competing for donations but also for volunteers to meet their goals and objectives.
Direct competition would include charities that have a very similar mission, such as child sponsorship and being a Christian charity. Although Compassion Canada’s child sponsorship is just one program of many. Some direct competition includes charities such as Chalice and Erdo. Erdo and Chalice are both Christian based charities offering child sponsorship among other programs (erdo.ca)(chalice.ca). World Vision is one rival which does child sponsorship, however
the funds collected are used collectively for the child’s community, not actually the child itself as
most people and donors believe (charity intelligence cite).
Indirect competition would be any charity that is also looking for donations from Canadians and Canadian businesses. More specifically it would be any international aide charities. These top charities include Oxfam Canada, Doctors Without borders, UNICEF Canada, Canadian Medical Assistance Teams (CMAT), Canadian International Immigrant and Refugee Support Association, and others (Chan, Brian).
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Compassion Canada
Barriers of entry is not something that usually is discussed with charities. Charities exist to fulfill
a need or mission that has been identified as important to someone or a group of people. Factors that may prevent charities from being created could be lack of interest by potential donors in that
mission or oversaturation of charities that exist to fulfill that mission. The fear of lack of volunteers could also be a barrier of entry since many charities rely on volunteers to run their charities. Threat of substitutes is difficult to identify. Substitutes could include other charities that people can choose to donate to. There could also be government programs that could now provide aid where charities used to, however usually they just provide grants and funding to charities directly. Substitutes may also include donors choosing not to donate to charities but use the money for their own self interest or hobbies. Bargaining power of donors is high. There are many charities that donors can choose to donate to. Especially today when donors want to see their money be used appropriately and expect financial transparency. Charities that cannot provide transparency and proven results will see donors out their money into other charities. Suppliers also have high bargaining power especially in underdeveloped countries where there are limited options. Food supply is often purchased in the country where the aid is distributed or a nearby country. Since there are many regulations and government barriers, suppliers will have a lot of control over what they can charge. Macro environment
Economic forces have a big impact on donation collection. When inflation hits, not only do donations not go as far in terms of what a dollar can do in impact, but they will also receive less donations because people will be able to afford less giving if their incomes do not stretch as far as before. They may also have to choose what charities they give to and cut out others. Currently inflation sits at 7.6% for Canada. (cite) as compared to 3.7% last year (July 2022). With food costs higher, fuel higher the impact on Compassion’s aid also is affected. When the donations pay for things like food, water and healthcare, inflation impacts everything. Inflation is usually global, with some countries experiencing worse inflation than others. Environmental forces can also have a huge impact. Compassion Canada and many other charities
provide aide during natural disasters. With the rise of natural disasters (proof), more aide will be needed and therefore Compassion Canada would need to rely on increased donations or use up their reserve funds and resources as would competing charities. Political and legal forces also impact Compassion Canada. In fact, most countries that Compassion Canada provides aide in, is due to corrupt or ineffective government
. Demographic forces
Global forces
4
Compassion Canada
Right now, society is encouraging activism, and social media is huge. Charities will need to have
a social media presence to succeed. Technological Forces also play a factor. Compassion Canada allows child sponsors to write letters via their website versus traditional pen and paper.
Compassion Canada can use technological change to their advantage. Using new technological advances to provide safe drinking water or reduce costs of delivering medical aide. Internal Analysis
Compassion Canada’s main competitive advantage is its collaboration with churches all over Canada (Proof) as well as local communities across the world. Compassion Canada also adapted very well during Covid-19 lockdowns that allowed them to still provide aid using technology as well as using local churches to be able to meet needs of the communities Compassion Canada serves. The use of technology allowed Compassion Canada to transfer money to churches and communities in developing countries in order for them to be able
to buy their own supplies while Compassion Canada was unable to reach them due to lockdowns and restrictions. strengths
-collaboration with churches -its child sponsor ship differentiator
-low overhead compared to most, impact
-transparency
-engagement thru child sponsorship -reputation Compassion Canada’s weaknesses
A disadvantage that Compassion Canada has is that it is a Christian charity promoting Christian values. Not all people will want to associate or donate to a Christian charity due to their own beliefs and values. Even though Compassion Canada is not primarily targeting Christian donors alone, it will limit its potential donors compared to non-Christian charities. Since charities do get a bad reputation when it appears they are allocating too many funds to administration, salaries and other non-cause expenditures, Compassion Canada can strengthen their position by lowering their overhead costs. Compassion Canada does have a low over head but to differentiate, compete and gain confidence it could have a lower overhead percentage. Right now the overhead is___%. In comparison….. Not highly differentiated among other child sponsorship charities. 5
Compassion Canada
Not a local charity so hard to physically see the impact of your dollars. They do offer trips, but that money could be spent on donations. To get more children sponsored must gain sponsors, and they choose their child to support. Strategic Options
1.
Work with other charities to maximize resources (cooperate with competitors) 2.
Partner with schools in Canada,
children helping children. Get children more involved. 6
Collaborate with other non-profit organizations
Arenas
Work with Canadian charities with similar vision but with different assets that Compassion may lack. Vehicles
Meeting with a compatible organization to pool
resources and find ways to use assets to increase
impact
Differentiators
Greater potential impact on Compassion’s projects and recipients of the aide. Staging
Identify non profits with same vision but with
different assets Compassion Canada can utilize Economic Logic
Able to pool resources and expertise leading to
greater impact Pros
-Increases available resources
-Potential to reach new donors
-Lower costs when pooling resources -Increase impact
Cons
-Relying on other organization
-May not have same vision/strategic plan
-More time spent communicating with the other organization Partner with schools
Arenas
Partner with elementary and high schools across Canada Vehicles
Have volunteers reach out to schools in Canada
that are currently not dedicated to supporting a
charity Differentiators
Children helping children, advances the message
of education and Compassion’s dedication to children’s needs
Staging
Create a program for partnering with school.
Identify schools that want to partner, or do not
partner with a charity. Send out volunteers to
reach out to those schools. Economic Logic
Expand donor base to increase funds available
for missions.
Pros
-Gain more donors and potential volunteers
-Increases funds as kids hold fundraiser
-Increased presence without increased marketing
Cons
-Not all schools will want to partner with a
Christian Organization
-Parents, not kids generally decided/donate or
have the funds
-School policies may make it difficult
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Compassion Canada
3.
Reduce Overhead costs by more marketing to attract volunteers. 1.
The first strategy is for Compassion Canada to collaborate and partner with other Canadian charities that share the same vision and goals but have different assets and strengths. Since, Compassion Canada emphasises maximum impact per dollar, working with another charity to pool resources would allow Compassion to achieve greater impact. Certain resources such as food distributors or medical supplies or equipment can be costly to source or purchase therefore collaboration would allow these resources to be more readily available to both charities. This would mean Compassion Canada identify 7
Working with Regulators
Arenas
Local governments, regulators, start with in U.S. where company is headquartered.
Vehicles
Meeting with regulators to discuss possible
options in setting regulations that are fair and
clear.
Differentiators
No other ride sharing company is working with regulators, gain customer loyalty
Staging
Reach out to most problematic cities first, meet
with local regulators. Economic Logic
Less time and money spent fighting lawsuits,
fines. To increase profit and focus on gaining
market share. Pros
-Less time and money spent on fighting lawsuits
and fines
-More confidence in expanding operations -Able to better establish long term goals Cons
-May be difficult to accomplish
-Also helps competitors, might lower entry
barriers
-Dealing with regulators all over the world may
not be feasible
-Could take years
Compassion Canada
which charities have those mentioned qualities first and then reaching out to those charities. Charities working together may also increase Compassion Canada’s presence to
gain a wider donor base. However, since the charity would likely be a Christian based charity for vision and goals to line up, this may not increase donor base substantially. A disadvantage is…
2. Another strategy is to collaborate with schools. Intro Recommendation and Implementation
References
Appendix 8