NonprofitPresentation非盈利机构的会计陈述课程.pptVIP

The Analysis of Key Financial Ratios in Nonprofit Management Andrew C Holman C.P.A., Adjunct Professor (Partner-Ritz,Holman,Butala,Fine LLP) Douglas M. Ihrke, Associate Professor Nathan J. Grasse, PhD Candidate University of Wisconsin-Milwaukee The Importance of the Nonprofit Sector Increasingly important economically (10% of GDP) Increasing role in provision of valuable services Funded by government ($200 billion annually) (Brooks) Services, such as social welfare, are being provided by nonprofits in partnership with government (Van Slyke) Scholars have argued that nonprofits perform important social functions better than either government or for-profit organizations (Frumkin) Scrutiny of the Nonprofit Sector Has suffered from notable scandals NAACP United Way Adelphi University Nature Conservancy New Jersey Symphony Orchestra Milwaukee Public Museum These influences have led to greater scrutiny Governing Nonprofits Financial management more important due to scrutiny and competition Executives and Board members need financial information to make key decisions A SHORT HISTORY OF THIS PROJECT Financial Ratios Financial ratio analysis is one tool used to improve financial decision making Ratios use financial data to summarize organizational performance LACK OF DATA HAS CREATED CHALLENGES It has been easier to get financial data averages for a car wash than the average nonprofit. FOR PROFIT ANALYSIS DOESN’T FIT Financial analysis applicable to for profit entities is only partially useful for nonprofits. Profit margins mostly do not apply. Revenue streams are different Equity is much different COMMON NONPROFIT FISCAL ANALYSIS Nonprofit Organizations are graded or rated but not analyzed by external sources such as Charity Navigator. “Punitive” Ratios of Program, Management and Fundraising. An organization should be rewarded or punished if funds are/are not used primarily for program activities Ratio – Adequacy of Resources Defensive Interval