23 Feb Identify a nonprofit organization that i
Identify a nonprofit organization that is in the education industry and has IRS 990 data readily available from Guidestar. Review the organizations website, annual reports (if available), and 2-3 years of the organization’s IRS form 990’s.
The analysis should examine the following (at least one slide per section):
- Overview: Describe the organization, its programs, and its business or revenue model.
- Operating Dynamics: Where does the organization’s revenue come from (foundations, government, individuals, earned, etc.)? Is it reasonably diversified or at risk? What does the organization spend on operating activities? Are expenses adjusted in line with revenue changes?
- Profitability: Does the organization cover its costs? Are surpluses sufficient to meet balance sheet obligations? Is the agency saving? If so, is it enough?
- Balance Sheet/Liquidity: Is the distribution of assets appropriate, given the core business? How “leveraged” are they? What is the composition of net assets? How much is unrestricted and liquid?
- Overall Assessment: In your assessment, is the organization financially sustainable (i.e. Is it generating enough unrestricted operating revenue to cover its total cost of doing business?) What are its capital or investment needs?
- Recommendations: What are the recommendations you would have for management or the board?
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