How do welfare organisations manage finances?

[Good-Person]

Welfare organisations are the kind of organisations that work for the betterment of people. They may belong to a certain community in many cases, however, this is not the case all the time. They depend a lot on donations. So, how do they manage finances? Do they rely on traditional financial management systems?

 

[Grant]

That's a good question, one I can't answer myself. But I would have to guess that they manage finances very frugally. As in they only pay out to people who are in need, or provide services and supplies to people in need.

I imagine they hire people to manage said finances, and make sure everyone is equally paid their benefits. I couldn't tell you for sure how they do things, but I imagine it's a tight run ship that doesn't make many mistakes.

 

[Heatman]

In some context, welfare organisations can equally be regarded as part of an NGOs. Even though they depend fully on donations from government, private businesses and international bodies, they have team of staff working for them. They definitely will have those who are experts when it comes to managing their finances so that the money they received as donations doesn't get misused.