GuideStar Demo (06/26/12) - Financial SCAN for Grantmakers


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GuideStar Demo (06/26/12) - Financial SCAN for Grantmakers

  1. 1. A New Industry Standard Sound Financial Health Strong Organizations Quality Programs Effective SolutionsFinancial SCAN demystifies nonprofit data andilluminates nonprofit financial health, providingthe field with knowledge and tools for buildingand sustaining healthy, effective organizations.
  2. 2. Why now? The sector lacks a common language and understanding of what it takes to keep a nonprofit in business and in balance  Existing ratings platforms focus on metrics like “overhead” that have no bearing on nonprofit efficiency or effectiveness  There is little agreement on what to measure, why it matters and how it links to mission success Financial data collection, reporting and analysis is time and skills intensive  Everyday demands of running a nonprofit compete with funder/donor demands for myriad reports and data sets  Data-crunching can supersede data-driven decision making in grant management and due diligence
  3. 3. 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 and informing grantmaker-grantee involved in making social(280K orgs) dialogue impact Who: Private and public grantmakers/donors, Private and public grantmakers, individual nonprofit organizations, nonprofit organizations, philanthropic WHO donors, philanthropic advisors, consultants and advisors, consultants and media media How: Private and public grantmakers/donors, Draws data directly from IRS Forms 990,* nonprofit organizations, philanthropic advisors, an easy-to- HOW presenting complex information in consultants and analyze and communicate format media*Note: Financial SCAN v. 1.0 does not include data from Form 990 EZ
  4. 4. What are existing grantmaker userssaying? Reveals trends and critical information about “We have a small staff, “Financial SCAN surpluses, deficits, debt, liquidity, and so adding an in-depth helps us manage restricted funds financial review to our our financial due diligence was close analysis in a to impossible. With It’s systematic way. Allows for consistent analysis while offering Financial SCAN, it’s tool a very valuable almost as if didn’t have that we we hired a context and accessible narrative part-time before.” staff member to do financial analysis Helps identify strengths and raise red flags, for us. It’s really streamlining our efforts informing conversation among ourselves, and in a tremendous way.” with our grantees Will help us present to our board the financial issues our grantees are dealing with Saves us time and resources
  5. 5. How are grantmakers using FinancialSCAN?Program officers at one foundation use FinSCAN as akey supplementary piece to their diligence process Uses include: Regularly used by: First look at applicants  Program staff Means of identifying areas of  Grants administrators deeper analysis  Trustees Component of board packetsThey make frequent use of single-page FinancialHealth Dashboard PDFs, and are beginning to runanalyses using grantee-provided peers
  6. 6. What’s in a Financial SCAN?Organizational Dashboard: Fiveyears of key financial trends and ratiosfor a selected organizationGraphs & Explanatory Text: Moredetailed overview of the nonprofit’s: Expenses Revenue Profitability Balance Sheet LiquidityPeer Comparison Dashboard:Comparison with up to five peernonprofits you select
  7. 7. Financial SCAN Demonstration
  8. 8. Nonprofit Finance FundThank you! Rebecca Thomas Vice President, Strategy & Innovation 617-204-9772 Rebecca.Thomas@nffusa.orgTo learn 8