<iframe src="https://www.googletagmanager.com/ns.html?id=GTM-PHTV9K7" height="0" width="0" style="display:none;visibility:hidden">
Loading
Skip to Main Content
Product cover image for Calgary Chamber of Voluntary Organizations- Empowering Nonprofits

Calgary Chamber of Voluntary Organizations- Empowering Nonprofits

Catherine Pearl, Linda Jay, Simon Magennis, Channing Brown

Product #:W33542
Supplier:Ivey
Discipline:Accounting, Entrepreneurship
Setting:Canada, 2021
Details:Case (PDF) • 20 pages • 2024-01-25

Subjects:

Social enterpriseSociety and business relationsFinance and investingAccountingEntrepreneurship

Industries:

Public administration and nonprofits

Geography:

North AmericaCanada
Your Price:$9.71

Purchase this material with a free Educator Account and enjoy more benefits:

  • Free Educator Copy
  • Free Teaching Notes
  • Build your coursepack
  • Discounted academic price

On May 5, 2020, Karen Ball assumed the role of president and chief executive officer for the Calgary Chamber of Voluntary Organizations (CCVO), based in Calgary, Alberta, Canada, following her predecessor’s departure. With board approval of the 2021–2024 strategic plan, Ball and her team were preparing for a board meeting on January 10, 2021, to present their options to diversify revenue streams and leverage social enterprise opportunities. Since the strategic plan’s approval, however, considerable change had occurred. Alberta’s economy was in a significant downturn, while the Coronavirus Disease (COVID-19) was making a devastating impact on the province, including the nonprofit sector. As Ball finalized her analysis, she had to determine and present to the board the option or combination of options that would best address CCVO’s new strategic direction.

Learning Objectives

Two teaching notes have been created for this case. The first is suitable for undergraduate courses in social innovation, social entrepreneurship, non-profit management, and strategy. The second is suitable for undergraduate-level courses in managerial accounting where costs for decision-making and capital investment decisions are covered, as well as courses that include discussions of decision-making and analysis in the non-profit sector. The case focuses on diversifying and expanding revenue sources by evaluating four options to generate earned revenue through social enterprise initiatives. This case provides students an opportunity to learn more about how one Canadian registered charity is addressing long-term viability in the face of declining revenues while operating in a volatile and unpredictable external environment.

After working through the case students who are studying this in an entrepreneurship class will be able to do the following:

  • Analyze an external environment and application of analytical tools (SWOT, PEST, and Porter’s Five Forces) to support a strategic analysis.
  • Analyze options based on breakeven and contribution analysis of the four options presented.
  • Apply the adaptive cycle as a tool to analyze an organization.
  • Develop a theory of change (TOC) that aligns with recommended strategic choices and decision made.
  • Recognize that registered charities and non-profit organizations operate in much the same way as for-profit organizations.
From the financial perspective, this case offers students the opportunity to use decision-making tools and costing techniques designed to evaluate revenue and income generating opportunities in the context of a non-profit organization.

After working through the case and assignment questions, finance students will be able to do the following:

  • Prepare an analysis of the external environment and apply analytical tools (SWOT, PEST, or Porter’s Five Forces) to support the analysis.
  • Perform a common size (vertical) and horizontal analysis of financial statements and identify important issues.
  • Calculate and analyze appropriate financial ratios in the context of a non-profit organization.
  • Identify and apply the appropriate accounting and financial analysis tools in varying circumstances.
  • Apply the concept of relevant costing in relation to financial decision-making.
  • Perform a basic breakeven analysis and interpret its meaning.
  • Perform an incremental analysis of projected costs and revenues appropriate to decision-making.
  • Analyze a capital investment through the calculation of payback periods.
Loading
Case Study: Calgary Chamber of Voluntary Organizations- Empowering Nonprofits (English version) | Ivey Publishing