Project Details
Select a not-for-profit organization in your community.
For purposes of the details below, "current year" refers to the most recently audited fiscal year. You will need to procure, at a minimum, the current year audited financial statements and form 990 and attach these to your final project. Your final paper should be a minimum of 5 pages, maximum of 10 pages excluding any materials acquired from your organization (i.e. budget, financial statements, 990).
Your paper should include your full analysis of the organization's financial condition and viability and should include at a minimum:
I. Introduction
1. History of the organization
a. When was organization founded
b. When did it receive 501c3 status
c. Who are the current auditors
2. Its Mission
3. Key program areas
II. Governance
1. A section on all information you feel is important regarding the governing body of the organization
III. Thorough financial analysis and in-depth narrative of the current financial condition of the organization to include the following:
1. Summary of Audit Report
2. Analysis of current fiscal year operating results (i.e. Income Statement) including a comparison of key income and expense line items against prior year amounts. Provide commentary as to the year-over-year variance where possible.
3. Analysis of year-end Balance Sheet. Discuss the make-up of:
a. Current assets;
b. Non-current assets;
c. Current liabilities;
d. Non-current liabilities; and
e. Net assets
For each balance sheet line item, note whether there was an increase, a decrease, or no change from the previous year-end balance. Provide commentary as to the year-over-year variance where possible.
4. A summary of key notes to the financial statements
5. Analyze the cash flow statement - indicate and discuss the organization's
a. Cash flow from operating activities;
b. Cash flow from financing activities;
c. Cash flow from investing activities; and
d. Net increase (decrease) in cash during the year.
6. Ratio Analysis - Include a minimum of 3 ratio calculations and the conclusions you draw from them including how they vary from prior year
IV. Other Information
1. From the form 990, extract information you wish to include to give the reader of your report a more in-depth understanding of the organization. Do not present financial information that has already been presented in section III above.
V. Budget - include either (or both) - a minimum of one is required
1. A budget versus actual summary for the current year. If your contact at the organization provides you with the budget for the current year, prepare a budget versus actual report and interview your contact on the reasons for the variance. Include this budget versus actual analysis and narrative in your paper.
2. A budget for next year. Based on your analysis of the current year and your knowledge of the organization, create a budget and budget narrative for next year and include this in your paper.