Magnolia Therapeutic Case Study Magnolia Therapeutic Solutions is a nonprofit organization specializing in providing services of psychotherapy for individuals who have been diagnosed with Post Traumatic Syndrome Disorder, commonly referred to as PTSD. After disaster strikes, or is experienced by someone, it is difficult to lead life the same way as before, causing several issues to arise. Some are recommended to seek treatment, and Magnolia is the place to seek treatment. After the terrorist attack on September 11th, 2001, Magnolia took the opportunity to help New York City sufferers who have been diagnosed with PTSD. Due to the high volume of individuals who needed treatment, the state provided a sizable grant to the organization to meet the increase of demands and services. This allowed the organization to hire additional professionals and utilize the remaining funds for administrative services. However, there was a decision made to increase the budget for the next year by the board of directors which resulted in a loss of funds.
Importance of Financial Management Financial management is an important factor for nonprofit organizations. In order to compete with for-profit businesses, nonprofit human service agencies and administrators must become more cost conscious and much better at the practice of financial management (Martin, 2001). Financial management is probably more important to nonprofit organizations, including both government and private nonprofit human service agencies, than it is to business organizations (Martin, 2001). The term nonprofit is utilized to describe these organizations as not being set up for the primary purpose of making a profit. Rather, they seek to make purposes of benefit to the public that are perceived under federal and state law. The board of directors governs the control of the nonprofit organization. The board’s mission is