The key to success in any business is in reporting risks prior to occurrence. Problems and risks cannot be solved unless they become a reality. However, risk management has made it easier for businesses to made problems a reality even before occurrence. With every business, financial risk is a problem that is given so much weight compared to other business risks (Barr & Dowding 2012). For every business particular those that are not out to make profit and rely on community financial contributions, financial risk is a major problem. Looking at healthcare statistics in financing, a higher percentage of healthcare organizations depend on donors and the community to fund their projects on an annual basis. However, donors and community support are mostly given to healthcare organizations that are out to give back to the society and provide community-centered care.

Many community healthcare organizations tend to rely much on philanthropic donations to provide service to the community. With the increase in funding and donations, business planner in healthcare organizations tend to assume that these donations with automatically be made when its time. Financial planners should not rely on financial donations when preparing the budget because every budget should be prepared without factoring in any donations (Barr & Dowding 2012). It would also be hard for Debbie to balance her calculations for the future and the present when donations are added and thus she might not be able to come up with actual calculations needed for the next phase of business. Not having donation calculations in her budget provides Debbie with the ability to design real calculations, balancing every unfavorable variance that might arise in the next business phase.

Financial operations have changed over time. In the past, financial developers were allowed to use donor information to design a budget for the next business phase. With most non-profit organizations still wishing to retain this factor, it has proven difficult for non-profit organizations to transit to the new financial demands. With all the uncertainties of the present, what happens when we have full donor representation and information on the budget and fail to receive the full amount? Wong-Hammond and Damon (2013) report that business targets and plans should be trimmed to help in planning in the event investors fail to remit the whole amount.