Peter KramerManagerNonprofit Finance FundScott MenzelProduct & User Experience ManagerGuideStarMay 30, 2013Insight Beyond ...
AGENDA Re-orienting to the Form 990 Case analysis using Financial SCAN Brief online tour Q & A
From Form 990 Instructions:Momentum is growing to make 990 data even morereadily availableA compliance document ANDa publi...
How can nonprofit leaders put the Form990 to better use? Understand your organization’s story as toldpublicly by Forms 99...
Key Considerations: What 990 data can andcannot do 990 data CAN help: Understand an organization’s financial trajectory ...
Today, our analysis guide will beFinancial SCANWhat: Data platform for assessing nonprofit financialhealth and fostering d...
What’s in a Financial SCAN?Organizational Dashboard: Fiveyears of key financial trends and ratiosGraphs & Explanatory Text...
Meet today’s case organization:Help for Homeless Youth MISSION: To provide homeless and at-risk youth withthe resources, ...
Help for Homeless Youth
Dashboard: Income Statement
Dashboard: Balance Sheet
111112222233333444445555566666Peer Comparison Dashboard Standardized 990fields allow for sideby side comparison Contrast...
Topics explored inFinancial SCAN graphs: Expense detail & composition Revenue detail & composition Profitability Full ...
Estimated full costs have not beenconsistently covered, limiting HHY’s ability tosatisfy longer-term organizational needsF...
Asset composition has shifted over time,reflecting a decline in liquid assets andgrowth in fixed assetsFacility ownership ...
While HHY’s assets have grown over theperiod, its liquidity has contractedAvailable liquidity represents a nonprofit’s abi...
Next steps and considerations forHelp for Homeless Youth Reflect: What activities have been contributing torecent deficit...
Brief demonstration of online interface
Q&A
nonprofitfinancefund.org 19Thank you!Peter KramerManager, Consulting ServicesNonprofit Finance Fund617-204-9772peter.krame...
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GuideStar Webinar for Nonprofits—Financial Analysis in Action: Getting the Most Out of 990 Data

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How can nonprofit leaders advance their missions by using financial data in their planning and decision-making? What are the "right" financial indicators on which to focus? In this one-hour webinar, we will undertake a comprehensive analysis of one organization's financial health, using the Financial SCAN platform developed by Nonprofit Finance Fund (NFF) and GuideStar. Through this case example, we will address the ways in which nonprofit leaders can use financial trends and comparisons to inform future plans and engage with stakeholders.

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

Published in: Business, Economy & Finance
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GuideStar Webinar for Nonprofits—Financial Analysis in Action: Getting the Most Out of 990 Data

  1. 1. Peter KramerManagerNonprofit Finance FundScott MenzelProduct & User Experience ManagerGuideStarMay 30, 2013Insight Beyond Compliance:What 990 data can say aboutyour organization’s financial health
  2. 2. AGENDA Re-orienting to the Form 990 Case analysis using Financial SCAN Brief online tour Q & A
  3. 3. From Form 990 Instructions:Momentum is growing to make 990 data even morereadily availableA compliance document ANDa public profile for many nonprofits
  4. 4. How can nonprofit leaders put the Form990 to better use? Understand your organization’s story as toldpublicly by Forms 990 Use the 990 data (which must be compiledanyway!) to conduct analysis of past financial trends Communicate with stakeholders about howthese trends inform current plans and resourceneeds
  5. 5. Key Considerations: What 990 data can andcannot do 990 data CAN help: Understand an organization’s financial trajectory and recentrevenue, expense, and balance sheet dynamics Show how an organization compares to its peers acrossstandardized fields 990 data CANNOT: Provide the authoritative and most up-to-date financialpicture of your organization Tie exactly to the information presented in an audit Show revenue restrictions Distinguish between operating dollars and capital dollars
  6. 6. Today, our analysis guide will beFinancial SCANWhat: Data platform for assessing nonprofit financialhealth and fostering dialogue among all stakeholdersinvolved in making social impactWho: Private and public grantmakers/donors,nonprofit organizations, philanthropic advisors,consultants and mediaHow: Private and public grantmakers/donors,nonprofit organizations, philanthropic advisors,consultants and mediaWHATData platform for assessing nonprofit financialhealth, decision making, and informinggrantmaker-grantee dialogueWHONonprofit organizations, private and publicgrantmakers, individual donors, philanthropicadvisors, and consultantsHOWDraws data directly and automatically fromIRS Forms 990,* presenting complexinformation in an easy-to-analyze andcommunicate format (313K orgs)*Note: Financial SCAN v. 1.0 does not include data from Form 990 EZ
  7. 7. What’s in a Financial SCAN?Organizational Dashboard: Fiveyears of key financial trends and ratiosGraphs & Explanatory Text: Moredetailed overview of an organization’s: Expenses Revenue Profitability Balance Sheet LiquidityPeer Comparison Dashboard:Comparison with up to five peernonprofits you select
  8. 8. Meet today’s case organization:Help for Homeless Youth MISSION: To provide homeless and at-risk youth withthe resources, relationships, and skills to become self-sufficient. PROGRAMS: Health Services Case Management Drop-in Center Basic Employment Skills RECENT DYNAMICS: Increased demand for services Uncertain revenue sources Maintaining an aging facility
  9. 9. Help for Homeless Youth
  10. 10. Dashboard: Income Statement
  11. 11. Dashboard: Balance Sheet
  12. 12. 111112222233333444445555566666Peer Comparison Dashboard Standardized 990fields allow for sideby side comparison Contrasts operatingand balance sheetcharacteristics Offers broaderenvironmentalcontext forconsideration
  13. 13. Topics explored inFinancial 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
  14. 14. Estimated full costs have not beenconsistently covered, limiting HHY’s ability tosatisfy longer-term organizational needsFull costs include: operating expenses, coveringdepreciation, purchases of fixed assets, debt principalpayments, and savings
  15. 15. Asset composition has shifted over time,reflecting a decline in liquid assets andgrowth in fixed assetsFacility ownership is its own line of business, and cansometimes be at odds with other organizational needs.
  16. 16. While HHY’s assets have grown over theperiod, its liquidity has contractedAvailable liquidity represents a nonprofit’s ability tohandle risks and seize new opportunities.
  17. 17. Next steps and considerations forHelp for Homeless Youth Reflect: What activities have been contributing torecent deficits? Evaluate mission/financial trade-offswithin each program area. Work to build budgets that account for full costs andbetter anticipate revenue volatility Engage board of directors regarding need for facilityreserve to care for aging fixed assets Discuss with funders how growth has impactedliquidity and need for rebuilding working capital
  18. 18. Brief demonstration of online interface
  19. 19. Q&A
  20. 20. nonprofitfinancefund.org 19Thank you!Peter KramerManager, Consulting ServicesNonprofit Finance Fund617-204-9772peter.kramer@nffusa.orgTo learn more:www.guidestar.org/financialSCAN

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