Exercise 1
1. Calculate the "assets", "liabilities", and "net assets" (or fund balance") for the two organizations you selected for most recent 990 reporting year and attach the spreadsheets to your exercise.
2. Identify special potential problems in the two organizations assets and liabilities
3. Identify potential strategies that McLaughlin suggests for possibly addressing them.
4. Identify positive or negative changes in the net assets (or fund balances) of the two organizations over THREE reporting years of IRS 990 forms
Exercise 2
Using the Nonprofit Financial "Health" Ratios Excel spreadsheet in Blackboard
1. Calculate financial health "ratios over a three year period for one of the nonprofit organizations you have downloaded from Guidestar, specificially in terms of liquidity, capital, profitability, and accounting age of plant & equipment (or land, buildings, equipment).
2. Identify the financial strengths in the health ratios for that organization over that three year period
3. Identify and discuss potential weaknesses of this organization over that three year period