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Investors, creditors, and analysts often use ratios to evaluate commercial enterprises. Ratio analysis can be used to manage nonprofit organizations as well.
Nonprofit managers and governing boards may find it challenging to plan for the organization's financial future because they rely on contributions and the lack of predictability of demand for their services.
However, nonprofits can maintain their financial sustainability by monitoring financial ratios. In fact, ratio analysis helps improve the effectiveness of management and determine if nonprofits have adequate resources to support their mission, values, goals, and efforts.
It is advisable that nonprofit managements should consider its needs and choose a set of ratios to measure that address its concerns. But ratios are not a goal in themselves and care should be taken in their interpretation.
Selected Grant News Headlines
A customized collection of grant news from foundations and the federal government from around the Web.
A "first-of-its-kind impact investing network" in the Philippines is putting its money where its mouth is, in the form of collateral-free loans to women-led social and environmental...more
"It is simply not good enough that, for many advisers, their understanding of AI is that information goes into a black box,'magic happens' and something comes out." So said the outgoing director...more
It's no secret that Africa's livestock industry plays a big role in the region's economy. In fact, the demand for livestock products is expected to grow by 50% by 2030, notes Business...more
The CEO of the nation's second-oldest civic monument has been ousted over allegations of financial impropriety at Dallas' Fair Park, the Dallas Morning News reports. On May 1, Brian Luallen...more
Grace Reynolds, 17, sang "Landslide" in the style of Fleetwood Mac, while 11-year-old Rylee Campbell performed "Once Upon a December" in the style of Liz Callaway, but it was Reynolds who took home...more
Margherita Therese Pappas was a singer and actor who performed in New York City, San Francisco, Amherst, and elsewhere before settling in Maui with her husband of 18 years, Miguel Sobel. Now...more
"No two children learn the same way, which is why our students achieve more than they ever thought possible." That's the message from one of the world's leading international schools, which is...more
The winner of this year's Sustainova Startup Challenge in Saudi Arabia has a message for the rest of the world: "If you want to save the planet, you have to start now." The startup contest,...more
Starbucks is taking a stand against single-use coffee pods: The company has teamed up with recycling company Podback to offer coffee pods for recycling at all of its stores in the UK, reports the...more
"I didn't want to acknowledge any life challenges I had along the waywhich left me feeling burnt out from not showing my whole self," says Trish Boes, founder and CEO of UnlimitMe. But now, she...more
Nonprofit Management News from...
Regional Access Project Foundation
Gates Foundation
Whitefish Community Foundation
Changemakers
Community Foundation for Southeast Michigan
Community Foundation of the Ozarks
Sierra Health Foundation
Community Foundation of East Central Illinois
Pew Charitable Trusts
William Penn Foundation
Social Entrepreneurship
Spotlight
Social Enterprise: Reaching Out to the Private Sector for Help
John Converse Townsend, a Forbes contributor, shares what can the private sector do for a social enterprise. He encourages social enterprises to reach out to corporations for help to scale up their businesses.
