From theory to a real charity's bottom line

Dr Prabanga Thoradeniya, 2026

Purpose

The purpose was to provide students with an authentic learning experience that bridges management accounting theory and real-world strategic decision-making. Rather than developing a Balanced Scorecard (BSC) for a hypothetical organisation, students were required to engage with the CDF Patient Transport Charity. This assessment was designed to develop students' capabilities in strategic performance measurement, and to encourage students to understand the importance of confidentiality when working with sensitive information. By requiring students to design a BSC that addressed real organisational challenges including financial sustainability, volunteer shortages and impact communication, students were exposed to the complexities of performance management within a real-world setting.

Practice

Prabanga Thoradeniya collaborated with the Founder of the Charity and obtained consent to share confidential information with students. Students were provided with access to the charity's website, financial statements, internal strategic documents and social media content, and were required to explore the organisation's strategic context and develop a BSC tailored to its needs – mirroring the type of work undertaken by management accountants when supporting organisational strategy and performance improvement. To further enhance the authenticity of the assessment, students were given opportunities to seek clarification, and the Founder responded to student questions directly.

Output

The output was the development of BSCs accompanied by business reports for the Charity. Students produced BSCs that translated the charity's vision and mission into measurable objectives and performance indicators, assisting the charity in monitoring performance across critical areas such as fundraising effectiveness, patient impact, operational efficiency, stakeholder engagement and volunteer development. Students also developed recommendations for measuring and communicating social indicators, which is often a significant challenge for not-for-profit organisations – moving beyond theoretical understanding to produce practical strategic management solutions for a real organisation.

Outcome

For students, the assessment enhanced higher-order skills in analysis, performance measurement and professional communication, encouraging them to apply a BSC within a complex real-world environment where financial and social objectives must be balanced simultaneously. For the Charity, the assessment generated BSCs containing innovative performance measurement approaches that could inform future strategic planning and performance management practices, while increasing students' appreciation of how organisations can measure and communicate outcomes that extend beyond traditional financial performance. With the consent of the students, the top four reports were shared with the Charity, and in recognition of students' work, the Charity awarded achievement certificates to students.

Impact

The broader impact of this assessment extends beyond the classroom. By engaging students in solving organisational challenges, the assessment fostered socially responsible graduates who understand how performance measurement can contribute to positive societal outcomes, and highlighted the importance of measuring and communicating social impact to stakeholders. The recommendations by students have the potential to strengthen the charity's ability to attract donors, sponsors, volunteers and community partners, and the collaboration strengthened the relationship between the university and the Charity – demonstrating how higher education can contribute to community impact through authentic assessment design.