Legal status
Different businesses attempt to do different things, different types of people are responsible for starting them in the first place. In all there are three main types of businesses (organisations). These are Public Sector Organisations, Private Sector Organisations, and Voluntary Sector Organisations. As Oxfam belongs to the Voluntary Sector for the next part of this booklet I will be looking all the aspects that are contained in this sector as well as the advantages and disadvantages.
What is a Voluntary Sector?
The voluntary sector of a nation's economy consists of those entities which are not for profit and yet, at the same time, are not agencies of the state - i.e.: charities, volunteer community centers and religious organizations. Voluntary groups are not owned by any individual people. However, someone will be responsible for ensuring that it sets targets and budgets and does what it is set up to do. In order to become a registered charity, a volunteer group must be given a registration number by the Charity Commissioners.
The Charity Commission is established by law as the regulator and registrar for charities in England and Wales. Their aim is to provide the best possible regulation of charities in England and Wales in order to increase charities' effectiveness and public confidence and trust. Their role as regulators are to ensure that charities meet the legal requirements for being a charity, and are equipped to operate properly and within the law, to check that charities are run for public benefit, and not for private advantage, to ensure that charities are independent and that their trustees take their decisions free of control or undue influence from outside and to detect and remedy serious mismanagement or deliberate abuse by or within charities. Organisations are granted the regeistration status if the met all theirs requirements and are also moniter on a reguler basis to examing that their aims are being are being met.
Advantages of being a registered charity.
Firstly; being a registered charity the organisation don’t normally have to pay income/ corporation tax, as well as the charity capital gained tax, stamp duty, and gifts to the charity are free of inheritance tax. This help enable the charity to use the full amount of resources they have raised carry out their aims and objectives.
Secondly; charities pay no more than 20% of business rate on buildings which they use or occupy to future their charitable purposes. This also allows the charity to minimize their running cost and raise more money for their work.
Thirdly; charities get an individual VAT treatment in cretin circumstances which minimize how much they pay to the government.
Fourthly: charities can raise funds from the public, grants-making trust and local government as there special resources to cater for those type of organizations.
And lsatly charities are allowed to sell goods untaxed which enabeds them to raise more money to contrebute to their ains and objectives.
Disadvantages of being a registered charity.
Firstly; charities that applied and have gained a registration numbers must make sure that their work is exclusively charitable. This is because if an organisation is registered as and are found to be doing non charitable activity could find their charitable status restricted.
Secondly; charities have a limited trading rule. These are regulations limiting fundraising and the extent of trading being carried out by a charity. In this case charities are therefore required a separate charitable company to undertake their trading services.
Thirdly: limits on trustees, Trustees are not in general authorized to profit financially from the charity, unless, in limited circumstances specified by the charity’s governing document or the Charity Commission. This is as trustees can only recover their accountability expenses and also trustees must also avoid own interest, which would conflict with acting in the best interests of the charity, as a result of this the charities legal status could be taken away.
Lastly: charities administration system. This is a disadvantage as they are required to produce an annual return and a financial report at the end of the year. And also another disadvantage of being a charity is the compulsory registration of charities. Under the Charities Act 1993, this states that organisations with entirely charitable purposes and an income of over £1,000 must register as a charity with the charity commission.
Oxfam’s Suitability to being a registered charity
Oxfam are suited to being a registered charity as they are able to raise funds through donations from the public in an emergency to help the people cut up in that particular devastation. E.g. with the Pakistan earthquake Oxfam were able to appeal to people help by donating money to help with the relief effort. Secondly: all amount they receive from donors are untaxed which enables them to use the whole sum to help their cause. Thirdly Oxfam bringing a charity means they pay no more than 20% of business rate which also allow them to worry less about their over heads and focus their attention on their aims and objectives. And lastly in being a registered charity, this means that Oxfam get free promotion of the organization through the media.
Employees:
Workers employed to work in an organization are interested in the company to provide them with employment and some time job satisfaction. With Oxfam as they are a charity their employees are interested in the organization for job satisfaction as they want to see changes being made to make peoples livelihood. Oxfam’s aims and objectives are in line with the employees interest as their staff work together to accomplish the aims and objectives. For example David Jones: Area Manager for; Wirral, Merseyside, Cheshire, and Isle of Man. He has been with Oxfam for almost 22 years and his aim is to share his retail skills with staff and volunteers the area he operates in, buy doing this it enables eth to help the trading team nationally to raise as much income as possible to support Oxfam’s emergency and development work. In 2001-02, Oxfam shops contributed £15.7 million. In the concept of employee’s interest in Oxfam: firstly if Oxfam are successful it will mean the employees accomplished their duty which is to help the needy as well as they will be congratulated for their hard work, whereas could frailer of Oxfam could result in death of people in the poorer countries and well as people cut up in disasters.
In conclusion employee’s interest in Oxfam is a success due to the amazing work they are doing to change people’s livelihood.
Local community / donors:
When talking about local communities with Oxfam there are two part, firstly the once who donates money and stuff to them to sell to rise money. And secondly beneficiaries the once Oxfam help improve their livelihood. Donors are interested in Oxfam to help them finance their works and projects. There are the donors who contribute to Oxfam with a long term commitment and passion to help the needy, as well emergency donation; theirs type of donors help rise quick money in short time for disasters. For example when the tsunami stroked in on Boxing Day 2004, emergency donors helped rise over $12 million in just over a week to help in the relief effort, were as British public helped raised £70 million. Their stakeholders interests are in line with Oxfam’s aims and objectives as they help them finance projects and relief effort.
In the idea donor’s interest in Oxfam; firstly if Oxfam are successful it will mean the public have made a satisfactory effort to assure that Oxfam are being helped to reach their causes. Whereas if donor’s fail to help Oxfam the outcome would be less/ no funding for their projects which will result on the death of people in the poorer countries and well as people cut up in disasters.
In conclusion donor’s interest in Oxfam is a success one due to the amazing responds to raise fund in an emergency, as well as for other causes.
Government
The government is interested in Oxfam for one reason, which is for them to work on the grounds of their aims and objectives which are to help needy people. The government’s interest can be are monitored by the governments own set up regulators which is the Charity Commission for England and Wales, who work to make sure that the Oxfam’s aims and objectives are being met. In the concept of whether Oxfam’s aims and objectives are in line with the government’s interest, I will in my opinion say yes. This is because from their annual reports and press release they show their incredible work being carried out around the world.
Retailers
Retailers are interested in Oxfam to prevent them from selling goods that are untaxed whereas they have to pay tax on all the goods they sell. For example with the cloths they get people. Retailer’s interest in Oxfam is a confecting concept as they want them to be treated no different in the paying of tax. That affect that Oxfam’s success will have on retailers could mean them they losses a majority of their customers.
Oxfam’s Aim and Objectives
What is a mission statement?
A mission statement clarifies the core purpose of an organization which gives a basic reason of its existence. Mission statement looks at the organization beyond simply increasing shareholder wealth, and reflects employees' motivations for engaging in the company's work but gives a generalization of their reason in business/ their cause. Effective missions are inspiring, long-term in nature, and easily understood and communicated. Oxfam’s mission statement is “working with others to overcome poverty and suffering. Oxfam’s beliefs under their mission statement are classified to be: “That lives of all human beings are of equal value. In a world rich in resources, poverty is an injustice which must be overcome. Poverty makes people more vulnerable to conflict and natural calamity; much of this suffering can be prevented, and must be relieved. People's vulnerability to poverty and suffering is increased by unequal power relations based on, for example, gender, race, class, caste and disability; women, who make up a majority of the world's poor, are especially disadvantaged. In working together they can build an immediately and safer world, in which people can take control over their own lives and enjoy their basic rights.” And lastly to overcome poverty and suffering involves changing unjust policies and practices, nationally and internationally, as well as working closely with people in poverty. Oxfam’s briefs are categorized in the strict five aims which are:
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The Right to a Sustainable Livelihood
- The Right to Basic Social Services
- The Right to Life and Security
- The Right to be heard
- The Right to Gender Equity
- The Right to a Sustainable Livelihood
Oxfam’s aim is to make sure the right of people to have food and income security in a way that is sustainable for their future and for the environment. In achieving this aim their objectives is to work with others to shift the power imbalances in local, national, and international markets. This to Oxfam is the fundamental causes of poverty for millions of people. This involves building the capacity of poor farmers and workers to participate in markets. This part of their Oxfam’s aim can be examined by looking at Oxfam’s work for example Zimbabwe. As part of on-going livelihoods programmer, Oxfam has come up with a voucher system which is been used for livestock and seed fairs was pilot-tested at food fairs during the lean period of the year in 2004–05. In cooperate Oxfam Local traders and individual households were known to supply the goods and sell at the fairs, and 6,000 of the most vulnerable households in the area were given vouchers for making purchases.
- The Right to Basic Social Services
Oxfam’s objectives for this aim are to ensure of people’s right to access to basic social services, such as education, water, and health. In achieving this aim Oxfam work contentiously to pursue issues concerning patents on medicines. This objective can illustration by looking at 2004 International AIDS conference in Bangkok, where Oxfam attended an also launched a briefing note entitled ‘Free Trade Agreement between the USA and Thailand Threatens and Access to HIV/AIDS Treatment’.
- The Right to Life and Security
Oxfam’s objectives for this aim is to ensure the right to humanitarian protection and assistance for people caught up in conflict and disaster taken under consideration as well as meeting their need. Oxfam’s objective for this aim is also to work and improve the quality of humanitarian assistance generally. This objective seems to have been met by looking at their community consultation and shelter programming in Sri Lanka where the tsunami hit. With this programme it enabled Oxfam to achieve their aim as they were able to gain public confidence which allowed them to rise
Oxfam’s objective in achieving this aim is to work towards get people’s right to be heard as an essential part of all their programmes. Under this specific Aim, they focus on increasing institutional accountability, and promoting policy that considers the needs of people who live in poverty, and in doing this to include their participation. Also in achieving this aim Oxfam seeks to influence national Poverty Reduction Strategy. This aim can bee seen to be putting into work by looking at theirs countries where Oxfam operate in: Philippines, Indonesia and India. According to Oxfam’s annual report in 2000 this aim was achieved as Oxfam’s community Aid abroad by supporting tribal peoples whose livelihood and culture are endangered by transmigration, logging and mining. In achieving this aim Oxfam worked with the communities in building their own establishment so that they have a voice, and they themselves can defend their interests.
- The Right to Gender Equity
With this aim Oxfam concentrate on achieving equal rights for men and women. Oxfam area able to accomplish by acting on their understanding that poverty affects women and men differently and that the majority of people living in poverty and suffering are women. In achieving this aim Oxfam will set up supportable indicators of progress for high quality programming on gender, in order to do this Oxfam lobbies Parliament to pass legislation that upholds and enhances the rights of rural women. This aim ca bee seen to be putted at work as in the year 2000 Oxfam Canada provided contributed $20,000 to help assist and train in the area of violence and women's rights
Oxfam reason in business
Different companies are in business for different reasons whether to produce goods or services. With my chosen organization Oxfam their reason in business is to provide services on the grounds of their aims and objectives. On the basis of Oxfam’s aims and objectives, they believe that: Poverty makes people more vulnerable to conflict and natural disasters and for this they aim to eradicate unfair trading standards and introduce free trade for every one. Second Oxfam are in business to prevent unfair power relations based on, for example, gender, race, class, background or disability as well as fighting for the rights of women as they are the once who makes up the majority of the world's poor.
In an over all idea of why Oxfam are in business, it is to help the most in need in a case of natural disasters and man made devastations.
Evaluation
In conclusion to this booklet I will be analysing Oxfam‘s success/ failures against their aims and objectives.
Firstly wit Oxfam’s first aim for the right for a sustainable livelihood, this Oxfam’s from annual report for 2004 seem to carry out incredibly well as for example looking at the rice farmers in Thailand who are seem to be benefiting form Oxfam Khao Kwan Foundation (KKF) as it gives them a direct practical support to enable both men and women farmers to convert to organic farming, and also helps them train others train other in doing so.
Secondly with the aim for right to basic social services, this seem to being met as Oxfam decided to build on a Cut the Cost campaign to improve access to medicines for people who live in poverty. This campaign was a success as they were able to gain support from their stakeholders who helped Oxfam’s programs in countries like Thailand, Malawi, South Africa, India, and Uganda to arrange with the government to sell their products much reduced prices to allow basic production of some drugs for people to by.
Thirdly with Oxfam’s aim for every one to have the right to Life and Security their objective focuses on work with the public on specific issues such as the promoting of hygiene as well as good nutrition. This Oxfam have made a considerable amount of effort in achieving this aim have made as all the regions in which they operate in have made a progress in implementing and strengthening their preparedness plans in case of any disasters. Example with Oxfam’s case study of Kitgum which is a town in the northern districts of Uganda, Oxfam has establish a ways of providing humanitarian assistance over about 120,000 people, despite the high level of insecurity in the country’s 18-year conflict. In the heart Oxfam have provided night shelters, water and sanitation facilities, and hygiene education for people coming into town at night.
Fourthly with Oxfam’s aim for every one to have the right to be heard seems to be making study progress consent to achieving this aims upon reflection of their annual report for 2004-2005. In this report Oxfam appear to be working to achieve this aim as with their case study of Zambia where their staff helped work helped achieve a change of stance by the governments.
And lastly with Oxfam’s aim for every one to have the right to equality. Under this Oxfam aimed to make progress towards more and higher quality integration of gender issues into all aspects of their work – i.e. recognising/seeking to change the balance of power between men and women in all their programmes which include development, humanitarian and campaigning. This aim appear to bee heading in the right direction as with their case study of Oxfam’s work in India which shows a program which have been set up to women against violence
On the over all concept of whether Oxfam has successful in achieving their aim, I will in my opinion say “yes”. This is because from looking at their annual report for 2004-2005 it gives a clear description of how their objectives have worked according to plans in achieving their aims. Also from fig 1.1, 1.2, and 1.3 shows the different sources of finance they use to raise money and how the money raised are divided to meeting their aims and objectives. And from looking at those figs we can analyse Oxfam have been able to meet their aims and objectives as their annual income from fund raising has increased plus how they have been able
Bibliography
Paper based sources
Books
Leaflets/pamphlet
Oxfam’s press release Cadburys Schweppes 2004- 2005
Oxfam’s Annual Report Cadburys Schweppes 2004- 2005
Types of legal status Peter Roe
Electronic based sources
http://www.oxfam.org.uk/about_us/mission.htm
http://www.oxfam.org.uk/what_we_do/issues/evaluation/impact_report_2005.htm
www.charity-commission.gov.uk
www.gls.gov.uk/about/departments/charitycomm.htm