The Veterans of Foreign Wars (Essay Sample)

This paper seeks to address, identify, and understand the financial and budgeting process utilized by the Veterans of Foreign Wars which is a nonprofit organization. The Veterans of Foreign Wars of the United States is a not for profit organization established to secure the rights and benefits of war veterans. Its membership has grown over the years to astounding figures. The VFW caters for both male and female war veterans. The wide array of welfare programs offered to war veterans by the organization range from medical and communication services to American troops stationed overseas. The organization also provides financial grants to the families of uniformed troops so as to help them meet their living expenses. Additionally, it assists war veterans when applying for their entitlement claims with the department of veteran affairs.
The Veterans of Foreign Wars Mission
The primary of the Veterans of Foreign Wars association is to advocate and foster the camaraderie of United States war veterans. To offer unconditional services to war veterans
The Veterans of Foreign Wars Vision
To ensure war veterans are recognized for their service and that they receive entitlements for the serving their country. Furthermore, it ensures that war veterans receive their rightful treatment for serving the American people.
The Veterans of Foreign Wars Values
Entrench a culture of patriotism
Honor the men and women in combat uniform
Serve the community
Respect the opinions of war veterans
Ethical considerations related to finance and budgeting within the veterans of foreign wars
The Veterans of Foreign wars financial and budgeting processes are anchored on the platform of honesty. The organization has embraced honesty in its budgeting process. Honesty ensures that financial figures add up and are not misrepresented to dupe their donors. It ensures that the budget figures are genuine. The clarity of financial and budgeting processes ensures that the veterans of foreign wars organizations manage its finances in a prudent manner. Honesty ensures the organization lives up to its values, vision, and mission statements. This ethical concept reduces the occurrence of fraudulent activities. The Veterans of Foreign Wars recognizes its responsibility to stakeholders, war veterans and donors.
Accountability is another ethical consideration in the financial and budgeting process. Given that the organization is a not for profit organization and is not subjected to intense oversight. It is imperative for the organization to utilize its financial resources appropriately and minimize financial leakages and mismanagement.
The board members and executive members of the organizations should deviate from perpetrating their own interests at the expense of the organizations good. Conflict interests tend to jeopardize the legitimacy of the organizations mission. The organizations should be accountable to donors. Transparency is another element that creates confidence in the organization when it comes to the utilization of donor funds.
The salaries and perks of the executive leaders should not be inflated and exaggerated. This is because exorbitant remuneration raises ethical concerns as is considered to as financial impropriety particularly if the organization has strained financial resources as a result of underfunding.
Financial control and compliance with laws related to the budgeting process. The organization ensures procedures are followed when it comes to approval and documentation of expenditures as well as incurring any obligations. Requirements related to accountability and documentation of the donors motives in order to ensure they comply with terms related to donations, fund raising procedures and use of donor lists.
Avoiding Financial Risks
The board members should act in the organizations best interests and avoid subjecting the organization to financial risks. Financial risks have the potential of jeopardizing the effectiveness of the organization.
The Fiduciary Role
The organizations executives should play their fiduciary role and ensure that the organizations financial condition is healthy. The board should make financial decisions after analyzing the pros and cons and enlisting expert opinion. This is because should anything happen to the organizations financial condition they are held personally liable for the decisions they make.
Role Clarity
The role and responsibility of board members should be clearly stated to ensure they fully understand what is expected from them. This ensures the board conducts its oversight function effectively. Fiduciary duty is an ethical consideration when it comes to financial matters in nonprofit organizations. If board members do not perform their role it is deemed that they neglected their primary role and considered an unethical practice.
Legal Requirements
The organizations management team should comply with legal requirements that comprise the financial planning and budgeting process. The board should ensure the organization meets its tax obligations.
Internal Controls
Internal controls helps in the identification of financial impropriety. The organizations financial resources should be managed in a prudent manner. Financial documents should be retained to serve as evidence for approved financial spending. Internal control is instrumental in the eradication of loopholes that give room for misappropriation of funds.
Budget Approval
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Budget approval should include all the relevant stakeholders. This approach creates an element of fiscal responsibility. The chief executive and financial officers should work closely with board members to ensure the organization meets its objectives. The importance of the budget document should not be underestimated. This is because the budget document governs the organizations financial spending. The budget should be realistic and balanced
Audits
The utilization of financial resources should be audited on a regular basis. The organizations should therefore procure the services of independent auditors. The audited financial reports should be readily available to the public as a sign of transparency.
Confidentiality
The board members should remain loyal to the organization and not disclose confidential financial information to unauthorized persons. For instance, the identity of donors should remain anonymous. Furthermore, financial performance evaluations should be made known to accredited individuals within the organization.
Evaluation of the organization's budget process and revenue sources
The organization's revenue sources are derived from contributions made by donors. Other sources of revenue for the organization are attributable to provision of services as well as receiving interest, rent, and royalties from investments. Grants are also a major source of revenue. The organizations budget making process is based on accountability as opposed to profitability. It is the responsibility of the budget committee to prepare a working budget. The budget prepared is for a specific timeline and involves an estimation of the financial resources required to achieve the organizations objectives. The time period through which revenue is generated is considered prior to developing the final budget that is then approved by the board. The veteran of foreign wars organization operates different ledgers for different purposes. This budgeting approach enables to allocate resources to specific uses. The budgeting process is dependent on a wide pool of funds from different contributors or donors. The different funds are balanced distinctively. Budget documents in the form of financial reports give a detailed account of the projected expenditure and revenue with respect to each fund. The budgeting process helps in the determination of expenditures and revenues. Furthermore, it helps in assessing the financial performance of the organization. Regularly financial assessment entrenches a culture of accountability and transparency when it comes to budget making. The organization should prepare a budget that will enable it to achieve its mission. The organizations board meets on a regular basis so as to ensure the organization is conducting its operations in accordance to the prepared budget. The effectiveness of the budget making process is dependent on regular analysis of financial statements. This is aimed at detecting discrepancies early so as to apply corrective action promptly. The objective of the budget making process is to develop a well-planned budget geared towards achieving the organizations mission in a sustainable manner while taking into consideration the prevailing economic conditions.
Internal factors impacting successful strategic financial planning
The Veterans of Foreign Wars organization internal environment involves human resources and primarily determines the manner in which the organization achieves its objectives as stated in its mission statements. The internal environment can be regulated by the control function of management.
Human Resource
The organizations human resource plays a...