The Smith Family (TSF) is a national charity which supports disadvantaged children and families in Australia. It devotes to creating a better future for disadvantaged young Australians through providing education opportunity for them (TSF 2012). This case study aims to assess TSF’s strategic position using SWOT analysis. The analysis reveals that TSF holds strengths of comprehensive sources of funding and being able to provide transparent information. The popularization of social network and the future education reform plan may give an opportunity to TSF. On the other hand, TSF is weak in utilizing the funds efficiently and effectively. A cut in universities funding may be considered as a threat. The finding is …show more content…
Generally, donors are more willing to donate to the charity with more detailed reports about their mission and strategy, performances and exhaustive financial information.
The effectiveness and efficiency of the charity is an issue that TSF needs to consider. According to TSF’s annual report (2012), every 83 cents in one dollar has been spent directly to the community program, however, the number declined 2 cents out of every dollar compared with that recorded in the report for 2010-2011 (TSF, 2011). A study shows that the performance of a charity, which could be judged by administration and fundraising expense and fund spending percentage of total income, is one of the most significant criteria when donors are deciding which charity they would like to support (Iwaarden et al. 2008). Some people think that TSF already has a strong internal efficiency as the data shows that the percentage of expense on administration decreased while the cost on fundraising remains the same since 2010. However, the percentage of spending on programs dropped and the financial statement shifts from surplus to deficits between 2009 and 2012. If the organization keeps performing in deficit, it would be hard for them to maintain regular effectiveness and efficiency in the future. Consequently, it may lead to a decline in the number of donors.