Classmate 1

I believe that Christian Children’s Fund (CCF) story as described in the discussion question took a brilliant decision when in 1995 it implemented what it called the Annual Impact Monitoring Evaluation System (AIMS). Users of Not for Profit Financial Statements includes, donors, members, creditors, and others who provide resources, for example governments provisions of grants have common needs. These needs will among other things, the ability to asses:

· The services the organization provides

· The organizational ability to provide these services.

· The method the organization’s mangers use to discharge their stewardship responsibilities.

CCF developed a robust evaluation system that helped provide feedback that help the organization direct resources to programs in those areas that make a measurable difference in the lives of its target population. This strategy helped the organization to be more effective in the use of its dollars.

Another strength identified in the background is the fact that local program directors are give the free hand to customize the needs of the locality where they manage. This organizational architecture is correctly described in (Zimmerman 2016, p 139). Here, Zimmerman described Organizational Architecture in terms of a three-legged stool. If one leg is in bad shape, this will affect the health of the rest of the others.

The three legs being:

· A system that measures performance

· A system that rewards and punishes performance

· A system that assigns decision rights

Not only did CCCF provides a matrix for measuring performance through the AIMES model, it also provides the appropriate decision rights by allowing local program directors in about the countries it has presence to take decisions that works best in the local community.

Also, moving on to the Financial aspect of CCF. A close look at the Consolidated Statement of Activities in exhibit 1, the company recorded a $ 9.8m increase in revenue in 2003, a 7.4% year-on-year compared to 2002. This is a strength. The ability of a company to continue to do the good work it has been doing since 1938, depends in parts to its ability to continue to raise funds to support its operations. Not only did the company increased it revenue, it also managed it expenses for the period. This is why CCF made a Net Increase in Net Assets (The equivalent of Net Profits in a for “Profit Financial Statement”) of $ 116,726 in 2003.