Financial Analysis

Information, tools, and practical guidance to analyze, interpret, and use financial information, including financial ratios, trends, and management analysis. Includes definitions and examples for commonly used analysis tools.

Resources in Financial Analysis

This tool provides the description and calculation of 14 ratios including a mix of balance sheet and income statement ratios.

This worksheet and accompanying guide translates the financial data from the IRS 990 into easy to use financial report formats (year-end Balance Sheet and Income Statement) and several useful ratios that can be used as one part of a review or analysis or a nonprofit.

In this video, Nonprofits Assistance Fund defines different contribution categories and explains how to account for and manage restricted funds.

These sample reserve policies are provided to get you started, but keep in mind that no example will be an exact fit for your organization. We have included some options to assist you. Be sure to review these parts carefully to create the right policy for your organization.

This tool provides calculation of 14 ratios including a mix of balance sheet and income statement ratios. Individual nonprofits must decide for themselves which calculations are meaningful and what benchmarks will be useful for their situation and goals.

Most nonprofit leaders agree we need a new way to communicate about the true costs of our programs and the vital importance of strong organizational infrastructure. But we have not yet developed a simple, consistent message when sharing our view with potential supporters and investors. We are stuck with old terms and old images. How we visualize our understanding of nonprofit structure and programs shapes the overhead debate.

This resource explains financial structure of nonprofits, broken down into four core components. These components: revenue mix, infrastructure and expenses, program cost, and capital structure, define the business model that creates value for the community and sustains the business entity.

The guide and accompanying spreadsheet template break down the process of understanding true program costs, either through budgeting or financial reports, into several stages.