Week One
Examine the typical financing options available to nonprofits
Analyze financial statements to determine financial health of an organization
Prompt: (Project Part 1 – Background and Purpose)
Identify a nonprofit organization (see a few websites below) and discuss why you selected this organization for your research project. In your response, provide background information on the nonprofit, for example, the purpose of the nonprofit, the start date or how long in existence, structure, the number of board members, number of employees, and if there is an active volunteer base.
Week three
Analyze financial statements to determine financial health of an organization
Prompt: (Project Part 2 – Financial Data and Analysis)
For the nonprofit chosen in Week 1, find the published annual report and obtain the income statement, balance sheet, and statement of cash flows for three years.
From the most recent income statement, create one pie chart that shows its mix of revenue sources and one pie chart that shows its expenses. Comment on the diversity of revenue sources and on the nonprofit’s expenses.
From the most recent balance sheet and statement of cash flows, determine if the organization complies with FASB’s SFAS 117 ruling (Tip: see Laughlin, pp. 97-102). Discuss your findings and opinion.
Refer to the financial statements and ratio examples in Chapter 6 and from the Wiley website. Calculate the profitability, liquidity, and capital financial ratios for three years that the nonprofit could use to evaluate the organization. Compare and analyze the changes over the years.
Week 5
Assess the role of nonprofit boards in conducting financial oversight
Apply sound financial management practices to strengthen a nonprofit’s financial stability
Evaluate financial controls to minimize risk
Appraise the values of strong financial leadership
Prompt: (Project Part 3 – Financial Control and Leadership)
The financial responsibility of a nonprofit governing board includes its ability to achieve the organization’s mission over time. How does the board and CEO/executive director for your approved nonprofit address each of the following?
Oversight by state and federal regulators;
Identifying and managing financial risk;
Management of finances and fiduciary oversight;
Communicating financial transparency.
The Board of Directors has additional leadership responsibilities. Consider the following as you prepare your response:
Has the board conducted a formal, written assessment of the CEO/Executive Director within the past year? What about a self-assessment of the board’s performance?
Are board members required to sign a written agreement regarding their roles, responsibilities, and expectations?
Why is it important to develop and maintain an internal control system?
Week Seven
Deconstruct the uses of various financial reports and financial statements
Prompt: (Project Part 4 – Analysis of financial health and planning)
Explain what a healthy financial condition would look like and how the nonprofit could go about achieving it. Apply your findings to the financial health for the nonprofit organization of your choice.
As part of the financial planning process, what strategies would you propose to finance the nonprofit’s mission? What would you recommend to this organization to strengthen its financial condition?
