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UNICEF USA SWOT Analysis

Sparky Visionaries

College of Integrative Sciences and Arts, Arizona State University

OGL355: Leading Organizational Innovation and Change

Dr. Wurster

April 8, 2022
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UNICEF USA SWOT Analysis

The Sparky Consulting Team has conducted a SWOT analysis of our organization

UNICEF USA. The goal of this analysis is to determine the strengths, weaknesses, opportunities,

and threats of UNICEF USA. Transylvania University’s bulletin on Environmental Factors to

Achieve Strategic Objectives in Companies defines these categories: “Threats are characteristics

of the external environment that may prevent the organization from achieving its strategic goals.

Opportunities are characteristics of the external environment that have the potential to help the

organization achieve or exceed its strategic goals. Strengths are positive internal characteristics

that the organization can exploit to achieve its strategic performance goals. Weaknesses are

internal characteristics that may inhibit or restrict the organization’s performance” (Guga, 2010,

p. 134-135). We believe our SWOT analysis is an accurate representation of important

characteristics that should be identified for UNICEF USA before a new strategy for the

organization is determined and implemented. Below is our comprehensive SWOT analysis of

UNICEF USA.

SWOT Analysis

Our SWOT analysis of UNICEF USA is designed to explore internal and external factors

of the organization. We have identified what we believe are key factors in the organization’s

success and future. The purpose of a SWOT analysis is to address problems, take advantage of

new opportunities, and reduce future risks. Organizations depend on their SWOT analysis to help

them understand their position before they determine what strategy they want to apply next.
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Strengths Weaknesses

 Financial health  Toxic workplace allegations & new

 Diversity of projects leadership

 Working under the aegis of  Thinking small-branching smaller

UNICEF USA  Volunteer experience compared to other

 Extensive corporate support nonprofits

 Knowledge management opportunities

Opportunities Threats

 Advances in virtual technology  Humanitarian crisis growing with

 Collaborations with social media pandemic fallout 2022.

 Develop a rewards-based program  Climate change

 Incorporating cryptocurrency  Losing donors to the competition

 Losing Suppliers to the competition

Strengths
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UNICEF USA’s financial health is a major advantage in our industry as donors look at

this information when deciding who’s worth investing in. Our organization’s financial

transparency and preparedness are incredible assets for fundraising efforts because it gives our

donors the assurance that their contributions are being handled appropriately. For instance,

UNICEF USA goes out of their way to explain their charity ratings on their website. According

to Charity Navigator, UNICEF USA is given three out of four stars overall with an 85 out of 100

financial score and an outstanding 97 out of 100 accountability and transparency score (2022).

UNICEF USA addresses this financial score on their website in a way that really strengthens

their mission. Ultimately, if they had to choose between maintaining some sort of financial

cushion and “sending water, nutrition and medical supplies out into the field, children will

always come first. That approach is core to UNICEF USA’s mission. In some years that means

that cash in reserve falls short of Charity Navigator’s preferred ratio” (UNICEF USA, 2022).

UNICEF USA wants donors to understand that while these ratings are accurate, they sort of

undermine the commitment a nonprofit has to their mission and values. This transparency is

appealing to donors because it ensures that their dollars are directly going to the cause, no matter

what.

If resources are lacking in the event of an emergency, UNICEF USA has the “Bridge

Fund” to fall back on. This fund was “created to help UNICEF cover the cost of procuring

emergency supplies until donor funding comes through, at which point the fund is repaid”

(Bridge Fund, 2022). It could take up to seven months to receive donor funding; the bridge fund

closes this gap and gives UNICEF USA the leverage to act instantaneously in the event of a

crisis. Essentially, this fund is cumulative of grants, donations, and loans from high network

individuals and is paid off when more funding comes in. "The Bridge Fund is unique, not only in
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its mission and mandate, but also in the scale and the impact that it can achieve by leveraging

UNICEF's infrastructure, economies of scale, expertise and global reach” (Bridge Fund, 2022).

UNICEF USA’s access to this funding is incredibly powerful as it allows them to avoid major

financial obstacles in the event of an emergency. This is something that smaller nonprofits may

not have the luxury of replicating as UNICEF USA has the ability to lean on the structural-

cultural resources from UNICEF if ever funding is tight. This is a very appealing resource in

relation to fundraising because it suggests that UNICEF USA is financially secure, a quality that

donors do not take lightly.

UNICEF USA has an impressive range of fundraising campaigns that they use to appeal

to a variety of donors and are in line with current trends/demands. For instance, former CEO

Caryl Stern noticed that their Trick-or-Treat for UNICEF program had not been bringing in the

revenue it once did. She wanted to reinvent a similar program that would give kids the

opportunity to participate and feel empowered to make an impact while also driving funds.

UNICEF USA’s innovation labs introduced the idea of activity trackers and Caryl Stern brought

it to fruition in 2015. Through their partnership with Target, these Kid Power bands raise money

for hungry kids while also bringing awareness to the fact that kids in the US are not active

enough as “one in four children globally is malnourished; while one in four children in the

United States is inactive" (O'Neil, 2017).

This innovative idea to start building hardware in order to achieve their mission is a great

example of diversification in their capabilities to broaden their scope of funding. “The Activity

Tracker corporate support currently totals $12.7 million. The money generated by the program

has helped feed 52,000 children” (O'Neil, 2017). Not only is it innovative- but it is also

successful! “UNICEF Kid Power has been named one of TIME Magazine’s 25 Best Inventions”
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(UNICEF, 2022). This campaign really showcases UNICEF USA’s ability to sustain their

competitive edge as they are not afraid to reposition themselves in order to identify new

markets.

Another unique project that UNICEF USA has embarked on is the Child Friendly Cities

Initiative (CFCI). This initiative is also incredibly attractive to donors as it enhances the

organization’s reputation and legitimacy. “UNICEF’s Child Friendly Cities Initiative uses a child

rights-based framework to build a roadmap for establishing safer, more just, equitable, inclusive

and child-responsive cities and communities around the world” (CFCI Initiative, 2022). The

CFCI works with local stakeholders and governments to strategize ways of elevating young

people’s voices and experiences. “Houston, TX; San Francisco, CA; Minneapolis, MN and

Prince George’s County, MD will serve as the first cohort of cities and the first county to

implement an ambitious, two-year process toward recognition as a UNICEF Child Friendly City”

(CFCI Initiative, 2022). This project not only enhances UNICEF USA’s reputable position in the

nonprofit sector, but it gives them a sustainable competitive advantage as it really requires long-

term participation of those communities who partner with CFCI. Ultimately, UNICEF USA is

extremely renowned in the non-profit realm because they understand that diversity of projects is

an important factor in securing a variety of donors.

Weaknesses

Sparky Visionaries believe that being ethical and transparent is crucial in every

organization. While gaps in the culture of an organization occur in every organization, it is

ethically responsible to address issues publicly with transparency, followed by action. In 2019,

an anonymous whistleblower of UNICEF USA shared statements about harassment, unattainable

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time expectations and an “old boys club” mentality (Lieberman, 2019). As one came forward, so

did others. Previous Executive Director, Henrietta Fore addressed these issues publicly and

quickly began to make changes to the culture at UNICEF USA. Fore hired the Independent Task

Force as a third party to come and evaluate UNICEF USA in order to understand the

opportunities of the culture. Recently, there was a shift in leadership in Feb.2022 to new

Executive Director, Catherine Russel. Sparky Visionaries sees the new transition in leadership as

a weakness due to the potential halt or delay in the work of overall synergy across the

organizational culture. While new leadership brings change, it also can shift priorities and

neglect changes that need to occur with immediacy. “Anyone who comes into the role will need

to continue to grapple with what these challenges mean and what strong leadership is needed to

really help move forward through this moment to better protect the health and well-being of the

world’s children” (Kirkpatrick, 2021). Ultimately, it is important that new leadership is not a

distraction from continuing the pursuit of a healthy working environment.

Thinking small in ‘Small Business’ interactions, UNICEF USA is in partnership with

many successful organizations, globally. These include companies like Google, Gucci, American

Airlines and more. While this is part of what makes UNICEF successful, Sparky Visionaries see

opportunities in ways to involve small businesses. Large corporations provide a much bigger

output. UNICEF’s website states that “UNICEF USA operates in over 190 countries and

territories with 13,000 staff members” (UNICEF USA, 2022) and continues to increase year

after year. “Maybe there are some benefits to be gained from thinking small” (Coulter, 2013).

Collaboration and partnerships established with smaller organizations can still reach a large

number of people. This weakness also includes evaluations in the partnerships available to small

businesses that participate in UNICEF’s purpose.

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Opportunities

Sparky Visionaries believe that advancements made in virtual technology gives UNICEF

USA the opportunity to expand their services to new parts of the United States and children in

need. They currently conduct most of their business within major cities because that is where

they can help the biggest populations with the least amount of resources. Something that was

discovered during the pandemic is that our virtual technology is ready to handle the demand for

everyone. While virtual technology can’t be used to deliver supplies or administer vaccines, it

can be used to reach people in more rural areas of the United States and provide certain services.

The ability to connect virtually and instantaneously has created “previously unimaginable

opportunities for learning and development and personal exploration and growth” (Hollis et al.,

2020). Virtual Technology would give UNICEF USA the ability to educate and provide virtual

medical services like consultations and counseling to every child in the United States regardless

of their location. This technology would also give access to more volunteers as they now can be

located anywhere as well. Since services are being provided virtually, they cut down on

transportation costs and are more time efficient as the technology takes little time to set up.

While virtual technology can’t replace a physical person for everyone, it can certainly reach

more people and lower the cost of services.

Social media has created an opportunity for UNICEF USA to share its stories and build

new followings. We share everything on social media from our day to day lives, baby’s being

born, weddings, and to say goodbye to the ones we have lost. UNICEF USA has the opportunity

to use social media to increase funding as well as secure more volunteers. There are two

approaches that can be used on social media because it allows for the sharing of photos and

stories. The two approaches are the same idea but use different images to provide a response
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from the reader. The ‘shock effect’ is used by portraying images of human suffering while

‘positive imagery’ is used to portray humanitarian efforts as effective and needed (Orlov, 2018).

The idea behind both is to create an emotional response to get readers to respond either through

donations or through offering to be a volunteer. Social media posts often go viral when there is

an emotional connection which would result in the post reaching a large audience with less cost.

Another way UNICEF USA can use social media to their advantage is by partnering with other

large organizations or even the social media companies themselves. In today’s world

organizations are often scrutinized for not using their power and resources to help others. When

these companies partner with companies like UNICEF USA, they are able to bring awareness to

issues as well as publicly show their support. The company gets the positive recognition for

helping the problems while UNICEF gets the exposure and donations that are needed to keep

their services running. Both sides benefit from the partnership at a minimal cost as they can share

their messages on free social media platforms instead of paying for advertisements.

Reward-based programs give UNICEF USA the advantage of retaining donors and

suppliers. Many companies use rewards-based programs to help retain their customers as well as

solicit their business through direct advertisements. UNICEF USA has the same opportunity to

build a type of program that rewards both donors and volunteers to incentivize them to continue

working with UNICEF USA instead of other non-profit companies. Like other organizations, an

app or account can be created to track either donations or volunteer times. A level system

depending on the user’s involvement would allow for them to unlock different perks like the

ability for UNICEF USA or other companies to match donations or give volunteers priority

assignment choices. The types of rewards would change depending on the level of the user but

also can be adjusted depending on a specific need for a project. The progress tracker within the
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system should be able to be shared as a way to obtain more users and build a competitive

environment for the users as they try to score higher than others. Reward programs have been

proven to increase brand loyalty by creating an emotional commitment and creating perceived

program value (Hwang et al., 2018). The commitment and value created through this program

would help retain both donors and volunteers which allows UNICEF USA to continue providing

humanitarian services. The program can also allow for direct feedback from the users which

allows UNICEF USA to create a better customer service experience for the users.

UNICEF USA can incorporate cryptocurrency into their foundation so that it can provide

more funding for their services to children in need. The current program is very efficient as they

have an expense ratio of 88.4 percent which means for every dollar spent, 88 cents go directly

toward helping children, 8 percent of costs go to fundraising and 3 percent of costs go towards

administration (UNICEF USA, 2022). While 88.4 percent of donations being directly used for

their services is very efficient there is certainly room for improvement with the use of new

cryptocurrency technology. Cryptocurrency can benefit UNICEF USA in decreasing fundraising

and administration costs in their operations. In 2019 UNICEF USA announced that it will “be

able to receive, hold and disburse donations of cryptocurrencies ether and bitcoin, through its

newly established UNICEF Cryptocurrency Fund” (UNICEF USA, 2022). The advancements

made in cryptocurrency make it easier and faster to transfer funds to a project with less

involvement from banks and the government as it is mostly decentralized. UNICEF USA can

take advantage by increasing the different types of cryptocurrencies that it can accept which

gives donors more options. While cryptocurrency is a great way for donations to be made

anonymously, this creates a challenge for fundraisers as the “IRS requires charities to identify

some donors on a confidential part of their information tax returns” (Blum, 2018). Another issue
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this creates is that because UNICEF USA does not have the donor’s information, they are unable

to solicit them in the future and may lose their business to other organizations. While

cryptocurrency may have some issues that need to be resolved, it is undeniably a major

opportunity to make access to funds more efficient and increase donations.

Threats

The humanitarian crisis growing with pandemic fallout 2022, Sparky Visionaries has

concerns to surface around the uncertainty in regard to the continued spread of COVID-19. Even

though in the territory of UNICEF USA the pandemic is in a better state of manageability and

planning than the previous 2 years. The disruption to the supply chain for products and services

is fragile. Weakness has been identified which is out of UNICEF USA ability to implement

quick change or new networks. In addition, many of the global territories we seek to reach are

still vulnerable to spread and control of COVID-19 and the related health strains. The continued

spread of COVID-19 variants has not surpassed and is still very unpredictable in the places we

seek to service.

“It’s no secret that COVID-19 has exposed massive inequalities within countries as well

as between them. The beginnings of an economic turnaround in parts of the world in 2022 are

only likely to make these divides even starker. The pandemic increased the percentage of people

living in extreme poverty globally, ending a two-decade downward trend. That will make it even

harder for countries already dealing with conflict, fragility, or widespread poverty to rebound,

and it will drive new needs in places home to people who have not been traditional recipients of

humanitarian aid. Another, sadly predictable, blow to financial equality is that – across the board,

from richer countries to poorer countries – it is women who have been hit the hardest by the
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economic losses. They are more likely than men to be employed in low-paid, precarious jobs like

domestic work, food services, or the garment industry: among the first positions to go when cuts

are made” (Geneva, 2022).

Climate change is an unpredictable threat, Sparky Visionaries is concerned about the

rapid rise in environmental conditions facing relaxed action and political roadblocks. Our

research has determined trends are rising and urgency or swift considerations by many global

governments around the world is failing. We’re unable to predict outcomes but continue to

prepare for the crisis in regard to rising illness and disease. Ultimately the rapid changes and

slow response is leading to higher mortality in our world's children, specifically the youngest

group aged five and under.

The Children's Climate Risk Index (CCRI) provides data on children's risk and

vulnerability to climate change. This data is used by UNICEF USA and other charitable

foundations to determine where to focus assistance. “Children are more vulnerable to climate and

environmental shocks because of their poorer ability to withstand and survive floods, droughts,

and heatwaves. Further, they are physiologically more susceptible. In case of disease outbreaks

such as malaria and dengue which are likely to increase due to climate change, children are more

at risk of dying than adults. The current 2021 report states that almost every child on the planet is

exposed to at least one of the major climate and environmental hazards, shocks, and stresses.

Further, over 850 million children which is nearly one-third of the world’s child population are

exposed to four or more stresses. As many as 330 million children, roughly one-seventh live in

areas affected by at least five major shocks''(Muthyanolla & M, 2021).

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Sparky has developed a contingency plan that monitors the changing environment with

state of area reporting. This data will allow the leaders to shift focus quickly to continue to gain

the most impact for the overall cause of advocating for children regardless which strategy path

UNICEF USA decides to move forward with, all three represented have been accounted for with

the rollout recommendations.

Conclusion

Through the Sparky Consulting Team’s SWOT analysis of UNICEF USA, we found

internal strengths of the organization to be its financial health, diversity of projects, and

extensive corporate support. UNICEF USA’s internal weaknesses include toxic workplace

allegations, new leadership, thinking small, volunteer experience, and knowledge management.

We found its external opportunities to be advances in virtual technology, collaborations with

social media, the development of a rewards program, and future use of cryptocurrency. UNICEF

USA’s external threats exist in the growing humanitarian crisis post pandemic, climate change,

loss of donors, and loss of volunteer support. As UNICEF USA continues to grow as an

organization, change is inevitable, and as put by “Managers should think of change as hewing

four elements: company’s environment, the force of change, the perceived need for change, the

initiation of change, and implementation of change” (Guga, 2010, p. 140). The Sparky

Consultant’s SWOT analysis will allow for the organization to move forward with extensive

knowledge of its strengths, weaknesses, opportunities, and threats.

APPROVAL: April 8th, 2022 by 11:59 AZ time

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