Economic and Financial Management – 501MAN
Assessment 1
THE SAVE THE CHILDREN FUNDS
Introduction
This topic is in relation to economic analysis of a UK charitable organization “The Save the Children Funds”. There are number of factors which impact the non-profit organization during the global recession and pandemic situation. We will also discuss on the various challenges faced by the company during the past three years. The major challenges faced by the charitable organization are funding. They receive funds from various corporate houses, businessman and government. The Save the Children Funds provides assistance and support to the poor children and households living below poverty line. It is an organization which was established in the year 1919 in order to deliver better education, healthy foods, healthcare facilities and providing emergency services and assistance during natural disaster, war and conflicts.
Identify and evaluate the impact the economy has on business organizations
The global pandemic Covid-19 combined with economic downturn in the form of recession has hit the charity organizations in the United Kingdom. Almost 59% of the charities reported that they were impacted due to the economic downturn. Almost 62% of the charities stated that there was a reduction in the income in the year 2019. It was due to public funding from the UK federal government that they were still able to generate earnings. The fundraising which was almost 30% of the incomes of smaller charities declined over the past 6 months and is also expected to decrease in the next 12 months. In terms of investment incomes almost 62% of the charity organizations surveyed stated that there was a decrease in the returns from investments. But, there was almost 19% demand for services over the last 12 months during the global pandemic situation.
For The Save the Children funds charity organization reported that there will be an increase in the poor and middle income group households by 15% and will reach 672 million in 2019. By the end of 2020, it is expected that the number of poor children and households will rise by 86 million more. This was as per a survey conducted by UNICEF and The Save the Children Fund. Thus as stated in one of the report by (Baroness Tina Stowell & Lord Gus O’Donnell, 2019) that people have well understanding of the impact of recession on the manufacturing sector during the global recession and covid-19 situation and how it has affected the society but the impact on the charitable industry is much more complex. Measuring the impacts of the cu
ent economic situations on the charitable industry is of great importance as they
oadly impact the social consistency, well being of the individual and the civic engagement. Therefore, it is essential for the United Kingdom federal government to urgently take action in order to reduce the number of children living below the poverty line which may rise to 672 million being hit by the crisis in 2020. Around two-third of these people are from the South Asian and Sub Saharan Africa. Thus, due to lower investment income growth for The Save the Children Fund, there has been a decrease in the flow of funding towards the poor household and children of the countries. The Save the Children Funds also reports that due to the global economic downturn combined with global pandemic there will be immediate loss of income where most of the families will be able to afford the basic amenities like food, water and clothing. They will also be detached from getting good healthcare facilities, basic education. As a result the girl child will be at the risk of getting ma
ied early, exploitation and abuse. There is likely to be increase in the...