GuideStar Webinar (12/10/13) - Weaving Financial Data Into Your Nonprofit's Story
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GuideStar Webinar (12/10/13) - Weaving Financial Data Into Your Nonprofit's Story



Connecting money and mission can be difficult in the nonprofit sector. A solid grasp of financial health and resource needs is crucial for nonprofit leaders as they work to advance their ...

Connecting money and mission can be difficult in the nonprofit sector. A solid grasp of financial health and resource needs is crucial for nonprofit leaders as they work to advance their organizations’ missions. Financial SCAN is a quick, clear, and comprehensive online analysis tool that illustrates a nonprofit’s financial picture through a dashboard of relevant indicators, thirteen detailed trend graphs, and a peer comparison function.

Join us for a one-hour webinar to see Financial SCAN and its new features in action. The session will take a case study approach, exploring how you can use Financial SCAN’s multi-year and peer financial data in your work and conversations with stakeholders.

Presenters: Peter Kramer, Manager, Nonprofit Finance Fund, and Scott Menzel, Product & User Experience Manager, GuideStar USA (moderator)



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GuideStar Webinar (12/10/13) - Weaving Financial Data Into Your Nonprofit's Story Presentation Transcript

  • 1. Weaving Financial Data Into Your Nonprofit’s Story: Interpretation and communication with Financial SCAN Scott Menzel Product & User Experience Manager GuideStar Peter Kramer Manager Nonprofit Finance Fund December 10, 2013
  • 2. AGENDA Introduction to Financial SCAN New Feature Overview Brief Online Tour Case Analysis Q&A
  • 3. When it Comes to Finance, Nonprofits Face Common Challenges  Knowing which metrics to focus on for assessing financial health  Having the time and skills to collect, parse, and report financial data  Communicating your financial situation and resource needs
  • 4. Financial SCAN: A New Analysis Filter on 990 Data Sound Financial Health Strong Organizations Quality Programs Effective Solutions Financial SCAN demystifies nonprofit data and illuminates nonprofit financial health, providing the field with knowledge and tools for building and sustaining healthy, effective organizations.
  • 5. Financial SCAN at a Glance What: Data platform for assessing nonprofit financial Data platform for assessing nonprofit financial WHAT health and fostering dialogue among all stakeholders health, making data driven decisions and involved in making social grantmaker-grantee dialogue informing impact Who: Private and public grantmakers/donors, Nonprofit organizations, private and public WHO nonprofit organizations, philanthropic advisors, grantmakers, individual donors, philanthropic consultants and advisors, and consultants media Draws data directly and automatically from How: Private and public grantmakers/donors, IRS Forms 990,* presenting complex nonprofit organizations, philanthropic advisors, HOW consultants and information in an easy-to-analyze and media communicate format (313K orgs) *Note: Financial SCAN does not include data from Forms 990 EZ
  • 6. What’s in a Financial SCAN? Organizational Dashboard: Five years of key financial trends and ratios Graphs & Explanatory Text: More detailed overview of an organization’s:  Expenses  Revenue  Profitability  Balance Sheet  Liquidity Peer Comparison Dashboard: Select peer organizations for financial benchmarking
  • 7. How are Nonprofit Leaders Using Financial SCAN?  To engage staff, board members, and funders in conversations about recent dynamics and current needs  To map visually the organization’s financial story  To benchmark against peer organizations, assessing financial similarities and differences within and across sectors, sizes and markets  To provide historical context to inform budgeting and planning “My organization never thought about strategically and proactively planning its financial future until I presented them with Financial SCAN. Executive Director, Diversified Community Services, Philadelphia, PA
  • 8. Financial SCAN 2.0: New Features!  Excel Download  Peer Group Comparison  7 Day Nonprofit Access
  • 9. Brief Online Demonstration
  • 10. Key Considerations: What 990 data can and cannot do 990 data CAN help:  Illustrate your organization’s financial trajectory and recent revenue, expense, and balance sheet dynamics  Show how your organization compares to its peers across standardized fields 990 data CANNOT:  Provide the authoritative and most up-to-date financial picture of your organization  Tie exactly to the information presented in an audit  Show revenue restrictions  Distinguish between operating dollars and capital dollars
  • 11. Meet Today’s Case Organization: REAL WORLD SKILLS  MISSION: To prepare underserved youth for lasting careers and self-sufficiency  PROGRAMS:  Personal & professional skill-building  Summer internship placement  Trade programs and certifications  RECENT DYNAMICS:  Steady yet modest growth  New location and dated equipment  Beginning strategic planning process
  • 13. Dashboard: Income Statement
  • 14. Dashboard: Balance Sheet
  • 15. Peer Comparison Dashboard: 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6
  • 16. Topics Explored in Financial SCAN Graphs:  Expense detail & composition  Revenue detail & composition  Profitability  Full cost of doing business  Asset composition  Depreciation of fixed assets  Liability composition  Liabilities as a % of assets  Liquidity
  • 17. With the exception of 2008, surpluses and deficits have been close to breakeven But are surpluses adequate to build financial resilience? RWS has effectively managed this growth by consistently covering its operating costs to achieve marginal surpluses
  • 18. RWS’s liquidity has fluctuated somewhat over the period, but has been consistently tight Available liquidity represents a nonprofit’s ability to handle risks and seize new opportunities.
  • 19. Observations & Recommendations for REAL WORLD SKILLS Observations from Financial SCAN:  Modest growth over last several years  Reliable mix of revenue sources  Relative to peers, little fixed assets  Tight liquidity constrains ability to innovate Recommendations for Leadership:  Make business planning a part of strategy development; build on historical strengths (e.g., reliable revenue, surpluses in most years, etc.)  Consider amount and types of capital needed to build liquidity and adapt to the changing job market  To meet resource needs, discuss areas of fiscal strength and vulnerability with funders
  • 20. Q&A
  • 21. Thank you! Peter Kramer Manager, Advisory Services Nonprofit Finance Fund 617-204-9772 To learn more: 20