Pine Street Inn Case Report: Budget Woes and Worst Ahead

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Since Pine Street Inn didn’t have a proper financial strategy which helps to collect funds & generate revenue and they were mostly dependent on The State of Massachusetts for their funding and they didn’t have any alternative source which can fund them in the long run.

MANAGEMENT TEAM FAILURE:

Pine street inn’s management team failed in forming strategies to attract more fund raisers which resulted in crises. As there was only one organization on which their financial dependent.

RECOMMENDATIONS

- Effective income sources:

Pine street inn have to develop effective income sources through various organizations for financials, so that they don’t have to depend on a single organization and charities which is not effective in the long run.

- Generating revenue through homeless people by giving them work:

Pine street inn should startup with policies for generating revenue by giving work to the homeless who are staying there so that they can live on their own and lessen the burden on Pine street inn as the number of homeless people will decline in the city.

- Giving better rehabilitation facilities

Alcoholics and drug addicts should be given a better and fast rehabilitation facilities so that they can recover quickly and more space can be used for homeless people. They should also have a rehabilitation management team.

- Setting up goals to accommodate homeless people in future

They need to setup proper management team to manage the financials in such a way that any crisis in future would not affect them and they would be able to continue giving all the facilities to the homeless. Proper management of funds should be done and some amount should be saved for future prospects where they can use that money in case of any crisis.

CONCLUSION

After reading the full case and summarizing it we can finally conclude that the reason for the decline in revenues was basically due to the level funding done by the state of Massachusetts which was the primary source of funding for pine street inn. And the recommendations stated above can help the organization to avoid these financial crises. They also need to have a proper crises management team which can deal with these situations. Also some part of yearly funding and revenue should be saved for future prospects which can be used at the time of need. And they need to take the rehabilitation team and facility so that alcoholic and drug addicts can be treated quickly which spares more time for homeless people.