Hometown Community Church is a not-for-profit (NFP) organization that is faced with substantial attendee growth and the corresponding challenges that come with increasing demand. Located in the Midwest, Hometown Community Church has grown over the past several decades from a few dozen parishioners to a church with two building sites and increasing attendance. As growth continues, three alternatives are presented to help alleviate the space crunch. The business and accounting topics that this case addresses include:
The necessity and usefulness of accounting information in NFP enterprise decisions.
The need to make well-informed and well-analyzed choices when “business” is good, not just when “business” is bad.
The analysis, in a NFP, of management decision-making scenarios, such as make or buy, adding a second branch “store,” and capacity constraints.
The discussion of both quantitative and qualitative data in the decision-making process.