Discussion:
Look up the form 990 of a nonprofit organization that interest you. (its is likely available on Guidestar) Go through the financial data and develop your own analysis of the organization's finances. Questions you might think about include the following:
Q: Does it appear to have diversified sources of revenue? How vulnerable or unpredictable are these sources likely to be? What were its major categories of expenses for the year shown? What unforeseen expense could arise? What kinds of assets does it hold? Does it have debt? What produced its cash flow for the year shown? Does it have endowment or other permanently restricted assets?