Nonprofit Financial Information Online In the United States, the IRS requires that all 501c3 organizations file a tax return of sorts. The form nonprofit organizations are required to fill out is called a 990, and as public organizations, these forms are available to the public. Since 1999, organizations that file 990s have been required to provide copies to anyone who requests. Unfortunately, some nonprofits weren’t aware of this, and when asked, they sometimes refused to disclose what they perceived to be private information (although it is NOT). To ensure that the information is available, the IRS makes information from 990s available through two outlets. · Guidestar: www.guidestar.org · National Center for Charitable Statistics: http://nccsdataweb.urban.org/FAQ/index.php?category=31 Guidestar is the place to look if you want a scanned copy of the complete tax return for a single organization. NCCS is a national repository for compiled data on the nonprofit sector in the U.S., but the datasets do not include all of the information from the 990s. While Guidestar makes scanned copies of individual tax returns available, NCCS makes the data from 990s available in a database format. In other words, if I were interested in contributing money to the World Wildlife Fund and wanted to look at their financial information, I’d probably go to Guidestar. However, if I wanted to conduct an analysis of all nonprofit environmental organizations, I’d go to NCCS. While Guidestar and NCSS are great sources for data, they do not help in evaluating the financial status of an organization. A good online source of evaluating nonprofit organizations is CharityNavigator.org. What makes charity navigator particularly interesting is its use of financial ratios and rating system. The financial ratios for each of these factors is calculated from financial data on each organization’s 990. Individual Paper 3: Financial Analysis One technique used to assess an organization’s financial management is ratio analysis, which focuses on mathematical comparisons between or among accounts on a set of financial statements. While an organization’s size must still be taken into account, financial ratios allow a rough comparison of both large and small organizations. For example, looking at the expenses for Marist and Harvard isn’t particularly useful. However, looking at the ratio of program expenses to total expenses allows us to determine how much of each organization’s budget is used for administrative expenses versus mission critical programs. Ratios also represent benchmarks that organizations can use internally to analyze themselves over multiple years. Fortunately for us, IRS form 990 represents a quick-and-dirty set of financial statements for nonprofit organizations in the U.S. There are many types of financial ratios for evaluating nonprofit organizations. For this assignment we will examine four types: Efficiency: Efficiency ra.

1. Nonprofit Financial Information Online
In the United States, the IRS requires that all 501c3
organizations file a tax return of sorts. The form nonprofit
organizations are required to fill out is called a 990, and as
public organizations, these forms are available to the public.
Since 1999, organizations that file 990s have been required to
provide copies to anyone who requests. Unfortunately, some
nonprofits weren’t aware of this, and when asked, they
sometimes refused to disclose what they perceived to be private
information (although it is NOT).
To ensure that the information is available, the IRS makes
information from 990s available through two outlets.
· Guidestar: www.guidestar.org
· National Center for Charitable Statistics:
http://nccsdataweb.urban.org/FAQ/index.php?category=31
Guidestar is the place to look if you want a scanned copy of the
complete tax return for a single organization. NCCS is a
national repository for compiled data on the nonprofit sector in
the U.S., but the datasets do not include all of the information
from the 990s. While Guidestar makes scanned copies of
individual tax returns available, NCCS makes the data from
990s available in a database format. In other words, if I were
interested in contributing money to the World Wildlife Fund
and wanted to look at their financial information, I’d probably
go to Guidestar. However, if I wanted to conduct an analysis of
all nonprofit environmental organizations, I’d go to NCCS.
While Guidestar and NCSS are great sources for data, they do
not help in evaluating the financial status of an organization.

2. A good online source of evaluating nonprofit organizations is
CharityNavigator.org. What makes charity navigator
particularly interesting is its use of financial ratios and rating
system. The financial ratios for each of these factors is
calculated from financial data on each organization’s 990.
Individual Paper 3: Financial Analysis
One technique used to assess an organization’s financial
management is ratio analysis, which focuses on mathematical
comparisons between or among accounts on a set of financial
statements. While an organization’s size must still be taken
into account, financial ratios allow a rough comparison of both
large and small organizations. For example, looking at the
expenses for Marist and Harvard isn’t particularly useful.
However, looking at the ratio of program expenses to total
expenses allows us to determine how much of each
organization’s budget is used for administrative expenses versus
mission critical programs. Ratios also represent benchmarks
that organizations can use internally to analyze themselves over
multiple years. Fortunately for us, IRS form 990 represents a
quick-and-dirty set of financial statements for nonprofit
organizations in the U.S.
There are many types of financial ratios for evaluating nonprofit
organizations. For this assignment we will examine four types:
Efficiency: Efficiency ratios examine an organization’s
fundraising and administrative capabilities. Typically
efficiency ratios examine how much of an organization’s
expenses are used for administrative purposes as compared to
program expenses. Efficiency ratios also examine how well an
organization fundraises. Does it spend an inordinate amount on
fundraising and how much does it actually raise relative to its
fundraising expenses?

3. Profitability: Profitability ratios examine changes in an
organization’s surplus or changes in net assets. Profitability
analyses typically seek to determine whether an organization
has an appropriate surplus relative to its revenues and expenses.
Liquidity: Liquidity analysis examines whether an organization
is generating enough cash to support its operations. The lower
a liquidity ratio, the greater the risk that an organization will
not be able to meet its operating expenses. Organizations with
high liquidity ratios may want to consider investing funds for a
higher rate of return if they aren’t being used.
Long-term solvency: Long-term solvency examines the long-
term financial health of an organization. Solvency ratios
typically examine an organization’s assets and debt. Solvency
analyses examine how organizations structure debt and whether
the organization matches the terms of its debt appropriately
with the life of its assets.
Assignment
Part I (70%):
1. Choose three 501c3 organizations with similar missions and
download their 990s from www.guidestar.org. These
organizations can be similar to your hypothetical organization,
or simply three organizations that work in an area of interest to
you.
2. Draft a memo to your instructor that analyzes the financial
statements using at least one profitability, liquidity and long-
term solvency ratio for each organization. Be sure to discuss
how the ratios might impact how they would affect the
management of your nonprofit organization (see attached Excel
table for a sample of how to calculate the ratios from 990s).

4. 3. What other information might you want to use in determining
the organization’s health? Why?
Part II (30%):
For your hypothetical organization, write a budget narrative to
fund a new program (it can be the one you are trying to fund in
the final project or another one, it’s up to you). You should
(briefly) describe the new program and discuss how it helps the
organization fulfill its mission. For each of the following
categories estimate the total amount of funds you will need and
how the funds are to be used.
Budget categories:
· Personnel
· Equipment
· Supplies/phone
· Travel
· Indirect costs
· Total costs
Group 1 – Shailee Johnson, Mallory Maggiacomo, Juliana
Moore,
Deanna Robertson, Robert Weil, & Ben Towne
Work Plan
MPA 521 – Spring 2011
Name: College Preparation Association (CPA)
Mission Statement: The College Preparation Association strives

5. to provide core subject tutoring, career counseling, mentorship
opportunities, and academic advisement to students nearing
entry into college. To accomplish these objectives the College
Preparation Association will:
1. - Counsel students on the college entrance essay process.
2. Counsel students and their families on college applications,
FASA forms, scholarship, and loan documents,
3. Develop and maintain a mentorship program that allows
current high school students to maintain contact with current
college students in regards to all academic, social, financial,
and campus related questions.
4. Counsel students on career aspirations and help to identify
appropriate schools that will meet those aspirations.
5. Enhance necessary academic study skills through instruction,
tutoring, SAT/ACT preparation and coordination of college
services that the student may need.
6. Provide local high school students with the opportunity to
visit local college campuses and speak with college
professionals and advisors.
Problem Statement: High school students need to be more
prepared when entering into college – academically,
economically, financially, and socially. Many students need
guidance on the college application process, necessary
procedures after admittance, and various academic skills that
will allow them to be successful once their course of study has
begun.
Academically, an increasing number of community colleges
have been adding sections of remedial English and Mathematics
to their curriculums. These courses are intended to bring
students up to speed with college level study in these respective
fields. In addition, more colleges are advocating for research
and writing skills courses to introduce students to the nuances
of college study that they may not be learning in high school.

6. According to the Mid-Hudson Valley Community Profiles
webpage, “only 60% of fourth-graders are passing state exams;
below the state level in math but equal to the state in English.”
Additionally, there is lower than average performance amongst
low-income and minority students and only three-quarters of
high school students are graduating on time. This percentage is
lower than the state average rate. Furthermore, 88% of high
school students in the area say that they plan on attending a two
year or four year college (Education – Key Trends).
Even more alarmingly, two indicators used by the Mid-Hudson
Valley Community Profiles webpage show that high graduation
rates are below average and that the number GED diplomas
being granted are increasing. Even though the regional high
school graduate rate is increasing, Poughkeepsie City School
district had the lowest graduation rate at 54% (Mid-Hudson
Valley Community Profiles, 2012, Topic Indicators – High
School Graduation Rate). Furthermore, while the number of
GED diplomas remained steady in Dutchess and Orange
counties, Ulster saw a dramatic rise in GED diplomas from 2001
to 2006. This indicator is significant in that it shows that many
students are not capable of making in through the state high
school curriculum but still wish to pursue a credential like the
GED in order to have some opportunity to enter a higher
education institution in the future.
Finally, a third indicator entitled “Learning Outcomes – Plans
of High School Graduates”, shows that Dutchess County has the
highest share of students planning to attend a two year or four
college in the region at 88%. The share of students planning to
attend a four-year college fell four percentage points to from
47% to 43% from 2001 to 2010. In contrast and over the same
time period, the number of students planning to attend a two-
year college rose seven percentage points.
Using this information, it is thus possible to discern that even
though a significant percentage of students are planning on

7. attending college after high school, students are having some
difficulty either meeting the requirements for high school
graduation and/or are pursuing a GED credential in order to
enter a two-year community college.
Needs: By offering tutoring and academic advisement to first-
generation college students and students located in
economically depressed school districts. By focusing on grades
9-12, the organization aims to provide students with the
necessary skills to complete their high school courses and act a
supplement to college preparation in an after school-program
format. Furthermore, the College Preparation Association can
provide high school students with a mentoring capability with
local college students to answer any questions they may have.
We believe that this mentorship opportunity will allow high
school students to learn first-hand what it takes to be a
successful college student and what it takes to get there in high
school.
Our organization will need information relating to graduation
rates in Dutchess and surrounding counties, the importance of
the SAT/ACT exam and average scores related to these exams,
an exemplary mentorship program to model and its processes,
and opinions from education professionals on skills that they
feel new college students are lacking.
Sources of funding:
1. USA Funds - The mission of USA Funds is to enhance
postsecondary education preparedness, access and success. USA
Funds targets populations of low-income, first generation
students, foster children and minorities. Grants are awarded on
a National level and are not determined by geographical
constraints. Grants are awarded on a quarterly cycle that last
date of acceptance for the fiscal year of 2012 is June 15th,
1700hrs eastern time. First time agency proposals must
complete an eligibility quiz along with a letter of inquiry.
Proposals must not include grants that solely support operating
expenses and any building expenditures.

8. Further information can be accessed at
http://www.usafunds.org/Pages/default.aspx .
2. Walmart Corporate State Giving Program - The mission of
the Walmart Corporate State Giving Program supports
organizations with programs that align with our mission to
create opportunities so people can live better. Four core areas
that grants should focus on are Education, Workforce
Development/Economic Opportunity, Environmental
Sustainability and Health and Wellness. Minimum grants are
awarded at $25,000 with no maximum amount. Applications are
accepted for the fiscal year 2012 for the second cycle June 11,
2012 through August 10, 2012.
Further information can be accessed at
http://walmartstores.com/CommunityGiving/9632.aspx.
3. The Dyson Foundation - The mission of the Dyson
Foundation works toward improving people’s lives through
grant funding, promoting philanthropy, and strengthening the
capacity of nonprofit organizations. Request for projects are to
include human services, health access, advocacy or services,
and community and economic development. The Dyson
Foundation specifically targets economically disadvantage
children and youth that reside in Dutchess County. Grants will
not be awarded for capital campaigns. There are no deadlines
for grant submissions however applicants should anticipate a
wait of up to 6 months. Applicants must submit a letter of
inquiry prior to submission.
The Mini-Grant Program helps Mid-Hudson Valley nonprofits
improve their internal operations, program development,
administration, and management to better achieve their
missions. Mini-grants enable nonprofit board, staff, and
volunteer leaders to develop new skills by providing
organizations with financial support to hire consultants to lead

9. specific capacity building activities. Mini-grants may also be
used to defray the cost of conferences, seminars, and other
training opportunities for staff and board.
The Dyson Foundation - Eligibility
To be eligible for funding, an organization must be a 501 (c) 3
nonprofit organization or library based in the Mid-Hudson
Valley (Columbia, Dutchess, Greene, Orange, Putnam, and
Ulster counties). Funding from the Mini-Grant Program is not
available for individuals, government entities,
private/independent schools, or public school systems. Please
note that the Dyson Foundation does not generally provide
management assistance funding to faith-based organizations.
However, faith-based organizations and religious institutions
interested in submitting requests for mini-grants should see our
Funding Restrictions for Faith-based Organizations or
Programs.
The Dyson Foundation - Program Details
Applications are reviewed on an on-going basis. Funded
activities must take place within one year of funding, and
organizations are limited to one mini-grant in a calendar year.
Grants will be awarded based on a competitive review of the
applications.
The Dyson Foundation particularly encourages applications
from organizations that:
· have an annual operating budget of less than $1 million;
· were founded less than 10 years ago;
· are in transition (e.g., significant growth, changes in staff or
board leadership, reorganization, or other similar
circumstances);
· have not received prior mini-grant funding from the Dyson
Foundation.
The Dyson Foundation Mini-Grant Program will fund no more
than 80 percent of a project's cost, with a maximum award of

10. $10,000.
Examples of how funds might be used include:
· facilitation of a strategic planning process;
· resource development planning;
· training for board members;
· developing a marketing and communication plan;
· establishing or improving fiscal systems;
· developing personnel policies or personnel management
training;
· attending a relevant conference or seminar;
· technology planning.
Many of these services and training opportunities are offered by
the New York Council on Nonprofits (NYCON). While not
required for Mini-Grant Program funding, organizations may
want to discuss their training and consulting needs with the
New York Council on Nonprofits.
Further information can be accessed at
http://www.dysonfoundation.org/ .
Assignments and Benchmarks: With our work plan in place, we
have an initial guide to further the development of the
organization. We have set up only a few deadlines thus far.
By April 5th – All group members debated and confirmed the
mission statement, problem statement, and assignment and
benchmarks components.
By April 15th – Group will further determine who will continue
on outlined sections.
Progress: We believe we are on schedule and on target with the
project requirements. We do need some additional information
in regards to the needs section. However, we have established

11. the name, mission, goals, and sources of funding for our
organization. Now that we have a work plan in place, it should
be easier to develop our organization going forward.