Financial Analysis of the British Petroleum (BP) Foundation

fiscal Analysis of the British crude oil (BP) presentationBritish crude oil universeBritish Petroleum (BP) is one of the worlds leading integrated oil and blow companies, and it is the third largest button componenty and the fourth largest society in the world. It provides customers with energy for heat and light, fuel for transportation, lubri green goddessts to support the performance of engines and petrochemicals products to diversify daily give items. BP was founded in 1908 by William Knox DArcy to exploit oil discoveries in Iran. Nowa daytimes attain persons argon Carl-Henric Svanberg (Chairman) and Bob Dudley (CEO).The BP basis, Inc., established in 1952, is a private non-operating origination and an independent charitable transcription separate from, but funded entirety by, BP that exists for the existence benefit. It supports philanthropic activities just salutary-nigh the world, helps communities by supporting etymon (Science, Technology, Engineering, an d Mathematics) cultivation programs crosswise America, economic schooling, and by drawing attention to environmental issues.First of all, BP Foundation is widely known for portion to the development of group educations. It has supported some(prenominal) initiatives in Illinois by donating $5 million to the Museum of Science and Industry $400,000 to the University of loot Collegiate Scholars Math Science Initiative $100,000 to the Illinois Mathematics and Science academy Energy Center and $135,000 to the Chicago State University. Moreover, the BP Foundation supports organizations such as the National Action Council for Minorities in Engineering, the aim of which is to show baptismal font talents of Ameri bunghole Indians, Hispanics and African Americans. BPs initiative of donating $1 million e really three-year has supported cc engineering scholarships for students, who attend one of NACMEs 51 partner universities. In general, since 2012 BP Foundation has donated around $65 million for education, that shows a desire to expand economic opportunity, develop a highly skilled workforce and inspire the contiguous gene symmetryn of innovators.In 2005, BP united with the Association of Science- Technology Centers in ordinate to launch the Energy Education Initiative, objective of which is to train and equip STEM teachers. Besides, it joined the Million Women Mentors project to help young women to learn to a greater extent than rough STEM c beers.Second, BP Foundation has Employee Matching Program, that enables BP employees to match fund from BP to pensionable charitable organizations and to help support the community where they work. Since 2006, the BF Foundation has matched over $82 million on behalf of its employees to charitable organizations worldwide. In 2014 employees volunteered about 207,866 hours and raised around $1.6 million by taking part in sponsored pledge events. In appreciation of their efforts, the BP Foundation additionally provided m atching grants in the total issue forth of $10.4 million to educational institutions and charitable organizations.Also, BP supports military men both during and afterward their service. In 2005, BP was rewarded with the Secretary of Defense Employer Support Freedom Award, that the US presidency gives to employers for their support of workers serving in the Guard or the Reserve. Also, it helps veterans return to noncombatant life by, for example, supporting adaptive sports such as Paralympic programs and the Warrior Games, that help change or injured veterans while they pass procedure of rehabilitation and reintegration.To unification up, it must be said, that BP Foundation is one of the biggest supporters of programs designed to promote education through STEM, but at the same time it invests in economic development through job training, sustainable community projects and enterprise development and the environment through projects that further the understanding of global enviro nment issues. mo doughary AnalysisMonetarily, the ships social club is performing great. From its fiscal position, the lodge has m each long assets, which atomic number 18 used by the social club as a base of income especially when leasing as head as securities while borrowing loans which gives the community an advantage when it comes to loans for future. The long-term assets atomic number 18 known to increase in tax income as years proceed which places the guild at a soften place. Additionally, the phoner has short-term assets which includes taxation and short-term income, which is used by political party to provide for most of its expenditures as it, acts as a source of income.From the effrontery randomness, it indicates that organization has a positive liquidity. The assets of the organization exceed its liabilities, which explains the organization can meet its financial obligations without much pressure. there are the total assets of about 11 million while the re are about 7 million of total liabilities which basically leads to the positive deficit of roughly 5 million.The company has short term liabilities, which explains that the company can easily accommodate them down and can non lead to the closure of the business. The company likewise has a serving of sales which shows that the company is performing well in the marketplace. In addition, the company has gross sales of assets which is worth to a greater extent(prenominal) than 44 million dollars which specifies that the company is better placed and pick out a lot of disposal capital. The contributions, grants and gifts do not contribute a lot to the company source of income and capital like the company assets which are sold. When comparing its expenses and income, we noticed that the company doesnt vex a lot of expense when it comes to hiring of serve as well as equipments used in the office which basically reduces the company liabilities as well as expense.After the financia l year, the net assets are greater than net liabilities which shows that the company performed well at the end of fiscal year. The current ratio of the company is greater on the assets side when compared to the liabilities side. The company also has a higher book value of more than 14 billion dollars, which they can use for attracting investors since it indicates that the company is performing better and not in debt. The company also has a higher fair market value which shows that the company is performing well in market and that its products are considered among the best in the market which basically increase its market value.The company investments on the incorporated stock is higher both in book value and the market price which illustrates that the company is performing good in the market and that its bonds are among the highly purchased in the market. However, the organization has some grants which are payable and are higher at the end of year as compared to the beginning of th e year. This indicates that the company incurred some more expenses between the year which explains that the organizations will incur more expenses on paying the grants. The company lacks any deferred payments and mortgages to pay which reduces the amount of debts that they owe separate companies. The business has other investments around $ 175,000, which indicates that the company source of income and revenue is high.Funding of the OrganizationBritish Petroleum Foundation is funded through a program called Employee Matching Program. The employees who are linked with this program called Employee Matching Program. The employees who are linked with this program are those working for British Petroleum Corporation. This company is one of the worlds biggest enthusiasm companies and it delivers energy products and services to people around the world.In the employee matching program, a maximum amount of $ 5,000 or equivalent to topical anesthetic currency per employee for each calendar y ear that has been allocated. They also have the options that are well outlined on how each employee may choose to enroll and use this fund. An annual budget from the BP pedestal would be allocated to this fund. All employees of British Petroleum and any of its designated partners or exclusively owned subsidiaries are entitled to participate in the program. The recipient organizations must function on a Not for a Profit Basis. The organizations that are located in unite States must be qualified for tax-exempt under Internal tax revenue Service Code 501 (Gong, 2).Fundamentally, British Petroleum Foundation has done interminable things to the entire world and especially with touching many lives. The excogitation has donated more than $ 218 million to community and enterprises in the United States. In 2015, BP foundation logged more than 55,000 hours of volunteering that raised approximately $6 million grants. Apart from above, the foundation also assists organizations such as Na tional Action Council for Minorities in Engineering (NACME) which obtains to force an Engineering workforce. The foundation contributed $1 million to support 200 scholarships for students who are attending one of NACMEs universities.British Petroleum foundation also provides financial support to natural disaster areas. In cooperation with local BP businesses, it contributed $125,000 to provide diet and health services to those affected by floods in 2015. The foundation is sacred to support worldwide organizations that meet the British Petroleum foundation benefaction approach which includes economic development, education and education, economic development and ecological programs. They do not accept unwanted offers but they do request reviews submitted by BP businesses around the world.BP foundation has also partnered with sports and support social enterprises which began in family line 2011 to create employment legacy from capital of the United Kingdom 2012 Olympic games. The British Petroleum has also worked with social enterprises in East London and West London to provide training and knowledge to support projects to allow the enterprises grow in future. Therefore, we can conclude that British Petroleum Foundation has contributed to make the man the better place for everyone.The BP foundation is also funded from three sources which includes contributions and grants received, amour on investments and profits from sale of assets (Form 990). The foremost source of funding in 2015 tax return is the grants of $ 5.7 million from BP America, Inc. In 2014, they received $ 209,713 from BP Products North America from which $208,929 was a noncash transaction.The second source of funding is the Interest on Investments. In 2015, the interest was less notable amount of $16,920, however in 2014, the interest was $ 95,338. There was decrease of interest income in 2015 because there were the sales of $44,613.321in 2014 which was initially obtained by the foundation. The third source of funding is profit from sale of assets. In 2015, it amounted to be $(4,651), however in 2014, the profit was $38,734. Therefore, in 2015, its contributions became negative of 0.08%, however the contribution was reported for 26.70% in 2014. The major source of funding is grants which was received from British Petroleum.Issues facing the FoundationJust like any other organization operation in the economy, BP foundation faces some issues in its day to day operations. The first one is financial challenges. BP foundation is exclusively reliant on its parental company. They do not receive any support from other government, private or public organizations. BP foundation is not able to hazard its operating and managerial expenditures from its own resources. There are many more people who need to be reached by the charitable works of BP foundation but finance remains a limiting factor. The foundation ineluctably more funds to be able to extent its charitable services to every corner of the globe. It is therefore up to its management to generate ideas on how they will be able to raise these funds to smoothen their operations. other issue is operational level. The operations of the foundation revolve around energizing sectors of the society like education particularly science, economic development and environmental issues. The organization contribution is mainly restricted for providing scholarships for education to its employees but not to community. Also, they are inhibited by the fact that they are suffering losings economically and the company is not in situation to make investments.The foundation should set a lot of funds for research of new shipway of doing things. This will enable those students who are under the foundation to be part of the new discoveries made every day. By doing that, the foundation will be able to leave back a legacy to the forth orgasm generations for being part of those people who contributed to the great innovations ever made in the globe.Information about the FoundationThe information on the foundation is very limited. It needfully extensive research for one to obtain the information about this foundation because of the nature of their work. They are doing charitable work and it is not always published in newspapers or covered by bloggers.Because of the nature of this information, it needs to do a lot of research to access them. The website of British Petroleum has a very limited information about BP Foundation.The websites like CNN and NASDAQ didnt have any information regarding the financial statements. The other websites provided very limited information about the BP Foundation. The main information came from the BP Foundations Form990 tax returns for 2014 and 2015. Other than that, it is very knockout to find the information regarding the BP Foundation.Integration of BP FoundationThe foundation is integrated into British Petroleum Corporation by several levels. The foundation specially gives grants to STEM education, which basically follows the British Petroleums core values of safety and energy. Similarly, in case of when natural disaster occurs, the foundation gets help from BP to help those who got affected during the incident. some other level is excise tax, which is based on investments income, which shows that statement regarding its activities and if the company controlled any entry or exit of any company in the market. Moreover, the company donations to any organization and other transactions outside the book value. The filing cabinet also shows the credit payments and any other penalty the company was fined. The company through shares and taxes is tied with British Petroleum Corporation as well as the company assets.Work CitedGong, Ning, and Bruce D. Grundy. Charitable Fund-Raising Matching Grants or inseminate Money An Application to Employee Matching Grant Schemes. SSRN Electronic Journal (n.d.) n. pag. Web. 12 Mar. 2017.Employee Matching Fund. BP L ife Benefits (Core US Benefits) Employee Matching Fund. N.p., n.d. Web. 12 Mar. 2017.BP Foundation. Bp.com. N.p., n.d. Web. 12 Mar. 2017.