Harvard Case - Farm to School of Park County: A Journey from Program to Nonprofit (A)
"Farm to School of Park County: A Journey from Program to Nonprofit (A)" Harvard business case study is written by Karen L Cates, Liz Livingston Howard. It deals with the challenges in the field of Entrepreneurship. The case study is 6 page(s) long and it was first published on : Jan 10, 2019
At Fern Fort University, we recommend that the Farm to School of Park County (FSP) transition to a sustainable nonprofit organization with a clear focus on program expansion and financial stability. This transition involves a comprehensive strategic plan encompassing financial management, fundraising, program development, and community engagement.
2. Background
The case study focuses on the Farm to School of Park County (FSP), a program initiated by the Park County School District in 2007 to connect local farms with school cafeterias. The program?s success in providing fresh, healthy food to students and supporting local farmers led to its desire to become a standalone nonprofit organization. However, the transition presented challenges, including financial sustainability, program expansion, and building a strong organizational structure.
The key protagonists in the case are:
- Erin O?Brien: Executive Director of FSP, passionate about the program?s mission and seeking to ensure its long-term success.
- The FSP Board: Composed of community members and school district representatives, tasked with guiding the organization?s strategic direction.
- Local Farmers: Beneficiaries of the program, seeking to expand their market reach and contribute to the community?s well-being.
- School District Officials: Collaborators with FSP, interested in providing healthy food options to students and supporting local agriculture.
3. Analysis of the Case Study
Strategic Framework: We employ a SWOT analysis to understand FSP?s internal strengths and weaknesses, and external opportunities and threats.
Strengths:
- Strong community support: FSP enjoys widespread support from local farmers, school district officials, and the community.
- Proven program success: The program has a track record of success in providing healthy food to students and supporting local agriculture.
- Dedicated staff and board: FSP benefits from a committed team passionate about its mission.
Weaknesses:
- Limited financial resources: FSP relies heavily on grants and donations, which can be unpredictable.
- Lack of formal organizational structure: The transition to a nonprofit requires establishing a robust organizational structure, including financial management and fundraising expertise.
- Limited program reach: FSP currently operates within Park County, but has potential to expand its reach to neighboring areas.
Opportunities:
- Growing demand for local food: Consumers are increasingly seeking fresh, locally sourced food, creating a market opportunity for FSP.
- Government support for farm-to-school programs: Federal and state funding opportunities exist for farm-to-school initiatives.
- Partnerships with other organizations: FSP can collaborate with other nonprofits, businesses, and government agencies to expand its reach and resources.
Threats:
- Competition from other food providers: FSP faces competition from traditional food suppliers and other farm-to-school programs.
- Economic downturns: Economic instability can impact funding and consumer demand for local food.
- Regulatory changes: Changes in government regulations could affect FSP?s operations.
Financial Analysis:
- Financial statements: FSP needs to develop comprehensive financial statements, including balance sheets, income statements, and cash flow statements, to assess its financial health and track performance.
- Capital budgeting: FSP should prioritize capital budgeting to allocate resources efficiently for program expansion and infrastructure development.
- Risk assessment: FSP should identify and mitigate financial risks, such as funding volatility and market fluctuations.
- Return on investment (ROI): FSP needs to measure the ROI of its programs to demonstrate impact and attract funding.
- Cash flow management: FSP must develop a robust cash flow management system to ensure financial stability and meet operational needs.
4. Recommendations
Formalize the Nonprofit Structure: FSP should establish a formal nonprofit organization with a clear mission statement, bylaws, and governance structure. This includes electing a board of directors, establishing committees, and developing a strategic plan.
Develop a Comprehensive Financial Strategy: FSP should develop a comprehensive financial strategy that includes:
- Diversifying funding sources: Beyond grants and donations, FSP should explore alternative funding sources such as membership fees, program fees, and corporate sponsorships.
- Financial forecasting: FSP should develop financial forecasts to project revenue and expenses, identify funding gaps, and plan for future growth.
- Debt management: FSP should consider debt financing for major capital projects or program expansion, ensuring responsible debt management practices.
- Investment management: FSP should invest surplus funds wisely to generate returns and enhance financial stability.
Expand Program Reach and Impact: FSP should prioritize program expansion by:
- Targeting new markets: FSP can explore opportunities to expand its reach to neighboring counties or school districts.
- Developing new programs: FSP can introduce new programs, such as farm-to-table events, educational workshops, or community gardens, to increase engagement and impact.
- Partnerships: FSP should actively seek partnerships with other organizations, such as local businesses, government agencies, and other nonprofits, to leverage resources and expand its reach.
Enhance Community Engagement: FSP should strengthen community engagement by:
- Building relationships with stakeholders: FSP should actively communicate with farmers, school officials, parents, and community members to build trust and support.
- Organizing community events: FSP should host events, such as farm tours, cooking demonstrations, and educational workshops, to raise awareness and promote its mission.
- Utilizing social media and marketing: FSP should leverage social media and marketing strategies to reach a wider audience and promote its programs.
5. Basis of Recommendations
These recommendations are based on the following considerations:
Core competencies and consistency with mission: The recommendations align with FSP?s core competency of connecting local farms with schools and its mission to provide healthy food to students and support local agriculture.
External customers and internal clients: The recommendations prioritize the needs of FSP?s external customers (farmers, schools, and community members) and internal clients (staff and board).
Competitors: The recommendations acknowledge the competitive landscape and aim to differentiate FSP by focusing on community engagement, program innovation, and financial sustainability.
Attractiveness ? quantitative measures: The recommendations emphasize financial sustainability and program expansion, aiming to maximize FSP?s impact and attract funding.
Assumptions: The recommendations assume a supportive community environment, continued government support for farm-to-school programs, and FSP?s ability to attract qualified staff and board members.
6. Conclusion
Transitioning to a standalone nonprofit organization presents a significant opportunity for FSP to achieve long-term sustainability and expand its impact. By formalizing its structure, developing a comprehensive financial strategy, expanding its program reach, and strengthening community engagement, FSP can secure its future and continue to provide healthy food to students and support local agriculture.
7. Discussion
Alternative Options:
- Remaining a program within the school district: This option would offer less autonomy and potentially limit FSP?s ability to expand its reach and impact.
- Merging with another nonprofit: While this could provide resources and expertise, it might compromise FSP?s unique mission and identity.
Risks and Key Assumptions:
- Funding volatility: FSP?s financial stability depends on securing consistent funding, which could be affected by economic downturns or changes in government funding priorities.
- Competition: FSP faces competition from other food providers and farm-to-school programs, requiring strategic differentiation and marketing efforts.
- Program effectiveness: FSP?s success relies on the effectiveness of its programs in meeting the needs of students, farmers, and the community.
8. Next Steps
- Develop a detailed strategic plan: FSP should create a detailed strategic plan outlining its mission, goals, objectives, and action steps for the next 3-5 years.
- Establish a formal nonprofit organization: FSP should complete the legal paperwork and establish a board of directors to govern the organization.
- Develop a financial plan: FSP should create a comprehensive financial plan, including revenue projections, expense budgets, and fundraising strategies.
- Implement program expansion initiatives: FSP should prioritize program expansion, targeting new markets and developing new programs.
- Strengthen community engagement: FSP should actively engage with stakeholders, organize community events, and utilize social media and marketing to promote its mission.
By taking these steps, FSP can successfully transition to a sustainable nonprofit organization, ensuring its long-term success and maximizing its impact on the community.
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Case Description
This case series describes the startup of Farm to School of Park County, an emerging nonprofit organization in the US state of Montana. Case (A) describes the community, the need, and the origins of Farm to School in Livingston, Montana. The leaders of Farm to School face a budget crisis and need to evaluate four options to decide whether, when, and how it should become an independent organization. As Case (B) begins, Farm to School has decided to enter into a fiscal sponsorship agreement with the local community foundation. The next task for the organization's leaders is recruiting founding board members. They need to decide whom to ask and how to do it. In Case (C), the board develops a strategic plan and establishes committees. However, the board members and leaders start to feel fatigue in the face of the demands of a startup organization, leading to questions about what is truly strategic and how work will get done. The Farm to School organization in Case (D) has just issued its first annual report, filled with meaningful accomplishments. The leaders of the organization begin to plan to build an organization that will outlast them and the founding board members.
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