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7/31/2019 Fund Sourcing Report!
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Credit
Policies
Group II
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Policy
A general guideline on how to act in
ordinary or extraordinary that recur
from time to time, bearing in mind the
accomplishment of establishedcompany objectives.
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Credit Policies
Guides in the performances of the
credit functions of the company.
Should be directed to the general
objective of maximizing profits.
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Formulation,Implementation &Communication of Credit
Policies
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Credit Manager-is assigned an
active role in developing the policies
The extent of the details of credit
policies vary from company to
another.
It can be written or unwritten.
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Unwritten policies are workable incertain firms,written policies has
advantages More Precision
More Stability Avoidance of unintentional changes
caused by varied opinions credit
Continuity in credit operations
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Consistency despite personnelchanges
Valuable aid to training Facility for review
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Factors inDeveloping Credit
Policies
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1. Over-all companyobjective
Policies are general guides to
recurrent situations, bearing in mind
over-all company objectives.
Are underlying factors to beconsidered in developing credit
policies.
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2. Other DepartmentPolicies
The credit policies should be
harmonious with established policies
of the other department within the
company.
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3. Competitive conditionsw/in the Industry
Practices w/in an industry, whether
marketing/credit, also have a bearing
on the credit policy of individual
member companies in the industry.
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4. Long & Short rangetrends in the Economy
A good credit policy is flexible through
wide fluctuations in the economy.
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5. Internal Situation in theCompany
Financial condition of the company.
The reliability of credit policies isinfluenced by the financial strength of
the company.
The terms are also affected by the
financial situation.
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6. Profit Margins
High profit margin companies can
afford to have lax credit policies.
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7. Inventories
The quality and quantity of the inventories
should be reviewed in order to adapt the
credit policies accordingly.
Relaxation of the credit policies will enable
the firm to sell obsolescent goods or get rid
of slow or non-moving stock.
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8. Accounting Procedures
Measurement of the credit
departments efficiency and collection
procedures need a thorough
knowledge of the firms accountingsystem.
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Bank credit policies cover loan
functions and include types and
amount of loans, basic for loan
extensions, kind of collaterals within
the purview of the General Banking
Account.
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Credit Policies of Firms other than
bank and financial institutions,
especially trading firms are geared
more to support sales.
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Credit Policies are established inthe ff. order of priorities
Establish company objectives
Establish the credit objectives inrelation to the companys over-all
objectives. Analyze the environment during w/c
period the policy and operate.
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....
Consider competition, the companysfinancial strength, profit margins and
cost, quality and quantity ofinventories.
Write down the policies in
coordination w/ the affected
departments.
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Note:
The policies should not be too liberal
nor too restrictive.
The policies should be between these
two extreme varies from oneenterprise to another.
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Factors Affecting LiberalPolicies
Financial condition of the firm
Large-scale business w/ heavyoverhead.
Keep competition.
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Factors Affecting Liberal
Policies
Liquidation of heavy supply of
merchandise.
Anticipation of declining market.
Prospect of general prosperity.
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Factors InfluencingRestrictive Credit Policy Seller over-extension.
Seller monopoly.
Narrow profit-margin. Unfavorable business conditions or
industry outlook.
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Note:
Agood credit policyshouldencompasses basic company objective
of maximizing sales, reducing losses
due to bad debts.
Avoiding excessive financial burden
to the company at the same time
fosterin customer relation.
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P.S.
A sample of a credit policy and
procedures manual will be given to
everyone.
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Policy on Fund Generation(Fund Raising)
Group II
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Principles of Fund
Raising
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A. Marketing
Skills and techniques of fund raising
used by NGOs & some international
donor agencies.
Sincerity & ethical integrity speciallyapply to fund raising.
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A. Marketing
Fund raiser must be honest convinced
in the integrity of the organization.
k l d f
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B. Acknowledgement ofDonations
Ensure that communities assisted are
aware of the need to acknowledge all
donations, and praise their donors for
their loyalty to their community and
their much needed and appreciated
donation (cash and kind).
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C. Thank You Note.
Many NGO staff have wondered why
enthusiasm for their activities dried
up, and funds cease to roll in; simply
because they forgotten to
acknowledge and thank their donors.
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D. Progress Reports
They want to know what was achieved
w/ their donated money.
Atimely progress report is the most
effective way to thank them. They are more interested in the result
of your activities.
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E. Integrity
Maintain high level of integrity at all
times.
An important aspect of that integrity
is full accountability. Along with accountability is
transparency.
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E. Integrity
Must not have secret agenda, andmust be public and honest about all
its activities and all its expenditures.
This level of integrity is essential for
the sustainability of the group, the
completion of the project, and the
benefit of the community.
F M i i i P i i
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F. Maintaining a PositiveAttitude
Some people , agencies or groups
approached can or will not give to
your community or organization for
one reason or another
F M i i i P i i
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F. Maintaining a Positive
Attitude
Failure to obtain donations doesn't
mean that you or your organization is
a failure.
You may be tempted to be discourageand give up but never allow it to
happen.
G C l l ti d
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G. Calculating andRecording Project Inputs
Maintain accurate records of all
resources used in your community
project.
An accurate estimate of the cash valueof donated resources must be made by
the community.
G C l l ti d
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G. Calculating and
Recording Project Inputs
Financial statements should be
included in the cost estimates of the
project proposal, and should be
recorded during the actual
construction activities.
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Types andSources of
Donations
T d S f
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Types and Sources of
Donations
It describes donations from wide
range of potential donors, except
those from donor agencies which
require formal proposals.
T d S f
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Types and Sources of
Donations
The wide range of potential donors
means there is a wide range of specific
techniques that can be applied to the
process if...
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identifying donors,
getting message to them, collecting the donations and
Don't forget to thank them.
A U b R l
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A. Urban vs. RuralCommunities
There are several differences in
emphasis in techniques of raising
project resources, based on the
different characteristics of
communities.
A U b R l
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A. Urban vs. Rural
Communities
Urban communities are larger and
full of factions and schisms.
Small rural communities are easier to
organize and unite, but there is noguarantee.
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B. Public Raising Events
Large community fund raising events
can be quite elaborated, w/ high
profile officials making speeches, and
rich persons making ostentatious
donations.
C Urban Donors to Rural
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C. Urban Donors to RuralCommunities
Urban migrants maintain links to their
home communities.
Can be persuade to contribute to their
home community.
C Urban Donors to Rural
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C. Urban Donors to Rural
Communities
A feeling of guilt at not being home, or
of loyalty in spite of absence, may
result in some very large donations
from rich urban migrants.
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D. Commercial Donations
Include gifts from firms and
businesses that want to advertise their
will & support of the community.
Should be acknowledge and thanked.
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D. Commercial Donations
Should be encouraged to identify ways
they can convince the commercial
donors that it is the interest of the
commercial donor to assist the
project.
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E. Communal Labor
Communal labor is an important
internal resource.
Involves time and labor donated by
community members, some unskilled,some skilled, management, leadership,
meeting, planning, supervision.
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E. Communal Labor
Encourage the planners and designers
of community based projects that they
should carefully evaluate the cash
value of communal labor.
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F. Agricultural Donations
Farmers may donate food for the
project:
(a)To communal workers who are
working on the project, or(b) to the executive committee to sell
to raise cash for the project.
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F. Agricultural Donations
They may also donate other resources
off their farms which may be used
directly or indirectly for the project.
G Donated Food
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G. Donated FoodPreparation
While farmer may donate food for the
project, it still needs to be prepared
for eating.
G Donated Food
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G. Donated Food
Preparation
May include people who donate the
preparing of food and refreshments.
Do not forget to thank the people who
cook and prepare food for communallaborers.
H Contributions and
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H. Contributions andPledges
it may be made at public community
fund raising event.
Participants make their decisions to
donate in public meeting or event.
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I. Anonymous Donors
Anonymous donors are benefactors
who wish remain unknown. They
often have private ideological or
religious reason, but wish to remain
unpublicized.
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Conclusion
Anonymous donors are benefactors
who wish remain unknown. They
often have private ideological or
religious reason, but wish to remain
unpublicized
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Conclusion
When mobilizing a community to
undertake a community based project,
encourage them to identify a variety of
outside resources and persuade them
to identify and mobilize many of their
own internal resources.
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Conclusion
Obtaining resources for a community
project is a honourable and valuable
responsibility so do it with
enthusiasm, integrity and confidence
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THANK YOU!
GOD BLESS!