How to Read a Nonprofit Financial Statement
This course will develop your ability to appropriately interpret the major financial accounting statements that are used by non-profit organizations. Ideally, you will gain an understanding of the types of financial statements that are used by non-profit organizations, and how they differ from for-profit financial reporting. Also, you should gain an appreciation of both the power and limitations of accounting information in assessing financial performance and decision-making. You will also learn the uses of financial statement analysis, or ratio analysis for non-profit organizations.
This course is designed for adult learners involved or interested in non-profit management.
Students will be able to:
- Itemize the information in the income statement, balance sheet, and statement of cash flows for a non-profit company
- Explain the important differences between accounting income and cash flow and between book value and market value
- Describe the nature of business enterprises and non-profit organizations, as reflected by the statement of financial position
- Define financial (ratio) analysis and explain its objectives and limitations
- Identify the various categories of financial ratios used in non-profit analyses
- Define and calculate the ratios within each category
Topics covered include:
- Annual Reports and Financial Statements
- The Statement of Financial Position
- The Statement of Activities
- The Statement of Cash Flows
- Using Ratios with Non-Profit Financial Statements
- Financial Ratio Analysis
- Financial Ratios and Benchmarking for Non-Profits
- Financial Statements and the Question of Size
- Non-Profit Financial Statements: Things to Watch Out For
- Assessing Financial Statements
- Financial Indicators
Duration: 4 hours
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No advance preparation required.
This course has no prerequisites.