Description
Each student will do the following course project:
Based on an NPO o
Description
Each student will do the following course project:
Based on an NPO of your choice (though only one NPO per class), prepare a financial analysis of the organization using the concepts and methods discussed in the course. This analysis should incorporate material presented in our various readings and class discussion.
Please note the following specifics concerning the project.
Financial Analysis of a NPO
1. Select a nonprofit 501(c)3 organization – no duplicates from other students, so “first come, first serve”.
2. Obtain copies of their tax return (the 990 in the United States) or annual financial statements for the past 2 years, to perform your ratio and financial analysis.
3. Conduct a financial analysis of the nonprofit organization (as we did with CJM in class), remember to include reviewing the cash flow statement.
4. Prepare a written report on your organization and submit it by noon on Monday July 15, 2024.
5. Prepare a PowerPoint presentation to the class (10 minutes) addressing the following items:
o Provide a summary of the organization, including its structure, mission, clients served.
o From your financial analysis:
▪ Tell us where the organization is today financially.
▪ How they got to where they are today (past financial performance).
▪ Identify “yellow” and “red” flags discovered in your analysis.
▪ Articulate any interesting or concerning financial trends discovered in your analysis.
▪ Forecast where you feel the organization will be 3 years from now and explain your reasoning.
This class project will provide you with the opportunity to show the knowledge gained through the course with regard to conducting an analysis of financial statements of an existing NPO. You can conduct this analysis using the organization’s financial statements, as well as the organization’s form 990. It is strongly advised that you look beyond just the numbers to conduct your financial analysis. You need to provide a pdf of the most recent form 990 tax return and most recent financial statements with your paper. This paper is not just about the numbers. Your task is to inform the reader of the financial position of the NPO based on the information available. Is the NPO doing well, or are they heading down the path to failure? Your analysis will require support and not just your “opinion”. Make sure you back up your analysis with relevant data.
While the length of your individual paper will depend greatly on the amount of effort and research you do, the final length should be no less than 5 pages and no more than 7 pages, using a 12-point Arial font, double spacing, (similar to this instruction sheet) plus appendix reflecting your sources. Your grade will be determined on the information presented in your paper including content, presentation, and writing ability (spelling, flow, and grammar).