Join Bunkie Righter from GuideStar as we learn how foundations and charities discover the indicators of financial health that matter most. Special guests Chris Percopo of The Leona M. and Harry B. Helmsley Charitable Trust, and Dennis Dolbee of Boys & Girls Clubs of America, will offer insight into how they use Financial SCAN to make better decisions within their organizations. Moderated by Ashley Early.

1. A Conversation on Making Data Driven Decisions
Using Financial SCAN
December 9th, 2015

2. Today’s Webinar
Presented By:

3. Presenters
Christopher
Percopo,
Director of
Grants
Management
The Helmsley
Charitable Trust
Bunkie Righter,
Senior Director
GuideStar
Dennis Dolbee,
Director Financial
Services
Boys & Girls Clubs of
America
Peter Kramer,
Associate Director
Nonprofit Finance Fund

4. Illustration Credit: Julian Yu
Me
(Preacher)
You
(Choir)

5. Illustration Credit: Julian Yu
“Preaching to the choir actually arms the choir with
arguments and elevates the choir’s discourse.”

7. The best analysis of the financial health of an
organization will always include a dialogue with
leadership about their financial condition, story and
resource needs.

8.  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
Reasons To Use Financial SCAN
Visit: www.guidestar.org/financialscan to learn more

10. Due Diligence
When assessing a nonprofit’s operating
performance, look for:
Positive Indicators…
Reliable, repeatable, replaceable
revenue
Consistent unrestricted operating
surpluses
Surpluses that are sufficient in size to
cover full costs
In assessing the health of a
nonprofit’s capital structure, look for:
Positive Indicators…
Evidence of reinvestment in fixed assets
Evidence of ability to manage debt
Cash of at least three month’s expenses
Unrestricted liquid net assets of the
same
Current assets exceed liabilities

11.  Profitability & Savings: Are costs covered? Are surpluses sufficient to pay for
additional cash needs that live on the balance sheet? Is the nonprofit
generating adequate savings?
 Revenue Dynamics: Where does the nonprofit’s money come from? Are
revenue streams reliable, repeatable, replaceable?
 Expense Dynamics: Does management understand dynamics of direct and
indirect costs? Are costs adjusted in response to revenue shortfalls?
 Health of Balance Sheet: Are the size, nature and distribution of assets, net
assets and liabilities appropriate to support the organization’s business and
programs over the long term?
 Liquidity: Is there enough cash (or other sources of liquidity) available to cover
current obligations? How many months of liquidity are on hand? How liquid are
the nonprofit’s net assets?
Analysis for Assessing Nonprofit
Financial Health

12. T H A N K Y O U !
Questions?
Visit: www.guidestar.org/financialscan to learn more

13. W H AT D O A L L O F T H O S E E VA L U AT I O N M E T H O D S H AV E I N C O M M O N ?
DAT
A

14. The (1) text and (2) basic graphical representations in this presentation are under a Creative
Commons Attribution license. The photographs and other copied images are not, as I do not
have rights to them.
Bunkie Righter,
brighter@guidestar.org
www.guidestar.org