Project Number: CSC-IQP-COM COMMONSIDE COMMUNITY DEVELOPMENT TRUST Business Plan for the Merged Organization An Interactive Qualifying Project Report submitted to the faculty of WORCESTER POLYTECHNIC INSTITUTE In partial fulfillment of the requirements for the Degree of Bachelor of Science By ____________________ Matthew Bigman ____________________ Skyler Clark ____________________ Daniel Cullen ____________________ Jason Rose Date: February 21, 2008 Approved: ____________________________________ Professor Constance Clark ____________________________________ Professor Malcolm Ray Project Number: CSC-IQP-COM Abstract The objective of this project was to help two soon to be merged non-profit organizations, the Commonside Community Development Trust and the Pollards Hill Community Centre, develop a business plan and internal monitoring techniques. These two organizations are currently housed in the same building, although they operate as two separate entities. Once merged, the unified organization will be known as the New Horizon Centre. Using research and data collected both on site and before arriving, a set of recommendations for the new business plan for the merged organization was compiled and presented to staff and board members. II Project Number: CSC-IQP-COM Acknowledgements We, the project the team, would like to thank all members of the New Horizon Centre for their support and kindness during the time we worked with them. They treated us like we were part of their family and we are incredibly grateful. We would also like to thank our advisors for their ideas and support throughout the project. In addition we would like to thank Professor Dominic Golding for helping us find our direction when we first started out this fourteen week process. Finally we would like to thank anyone who has helped us along the way and to our friends and loved ones who have put up with us through the whole process. III Project Number: CSC-IQP-COM TABLE OF CONTENTS Abstract ........................................................................................................................................... II Acknowledgements ....................................................................................................................... III List of Figures .............................................................................................................................. VII List of Tables ............................................................................................................................. VIII Introduction ..................................................................................................................................... 1 1.0 Literature Review...................................................................................................................... 3 1.1 Non-profits and Development Trusts ............................................................................... 3 1.2 Mergers ............................................................................................................................. 6 1.3 Business Plans ................................................................................................................ 10 1.4 Internal Monitoring ........................................................................................................ 13 1.4.1 Management Accounting ........................................................................................ 13 1.4.2 Social Accounting ................................................................................................... 14 1.4.3 Balance Scorecard ................................................................................................... 16 1.5 Case Studies ................................................................................................................... 18 1.5.1 Castle Hall Academy: A Case Study in Non-Profit Accounting Mismanagement 18 1.5.2 Developing a Pilot Social Accounting Matrix for the United Kingdom ................ 19 1.5.3 Shaping the Balanced Scorecard for use in UK social enterprises ......................... 19 2.0 Methodologies......................................................................................................................... 22 2.1 Historical Research Methodology ....................................................................................... 23 2.1.1 Housing of Services ..................................................................................................... 23 2.1.2 Activities History ......................................................................................................... 24 2.1.3 History of Volunteer Base ........................................................................................... 25 2.1.4 Financial Records ......................................................................................................... 26 2.2 Interviews ............................................................................................................................ 28 2.2.1 Semi-structured Interviews .......................................................................................... 28 2.2.1.1 Sponsor Staff Interviews ........................................................................................... 29 2.2.1.2 Sponsor Board Interviews ......................................................................................... 29 2.2.2 Executive Interviews .................................................................................................... 30 2.2.2.1 Sponsor Executive Interviews ................................................................................... 30 2.2.2.2 Other Organizations .................................................................................................. 30 2.2.3 Patron Questionnaire Survey ....................................................................................... 31 2.2.3.1 Sponsor Patron Interviews ........................................................................................ 31 2.3 Observation ......................................................................................................................... 32 IV Project Number: CSC-IQP-COM 2.4 Business Plan Focus Group ................................................................................................ 32 2.4.1 Conducting the Focus Group ....................................................................................... 33 2.5 Writing a Business Plan ...................................................................................................... 33 2.6 Designing a Balance Scorecard .......................................................................................... 34 2.7 Presentation ......................................................................................................................... 37 3.0 Results ..................................................................................................................................... 38 3.1 Historical Research ............................................................................................................. 38 3.1.1 Activities Participation ................................................................................................. 43 3.1.2 PHCC Room Rentals ................................................................................................... 46 3.2 Interviews ............................................................................................................................ 48 3.2.1 Sponsor Interviews....................................................................................................... 48 3.2.2 Patron Interviews ......................................................................................................... 50 3.2.3 Executive Interviews .................................................................................................... 50 3.2.4 Other Organizations ..................................................................................................... 51 3.3 Observation ......................................................................................................................... 52 3.4 Focus Group ........................................................................................................................ 54 3.5 Business Plan Recommendation ......................................................................................... 56 4.0 Business Plan Recommendation Document ........................................................................... 57 4.1 Executive Summary ............................................................................................................ 57 4.2 Introduction ......................................................................................................................... 57 4.3 Strengths & Weaknesses ..................................................................................................... 57 4.3.1 Pollards Hill Community Centre ................................................................................. 57 4.3.2 Commonside Community Development Trust ............................................................ 58 4.4 Direction & Purpose ........................................................................................................... 58 4.5 Recommendations ..............................................................................................................