Specific Nonprofit Ratios

There are two ratios specific to a nonprofit’s financial statements used in ratio analysis: program spending ratio and fundraising ratio. Ratio analysis is a method for taking two or more informational elements and using them together to obtain additional information …

State Charitable Reports

A nonprofit organization may be required to register and report in more than one state. However, there are ten states that have no registration and reporting requirements for nonprofits. It must register and report annually to the Secretary of State’s …

How the Sarbanes-Oxley Act Applies to Nonprofit Organizations

The dishonesty of investor-owned companies was uncovered and reprimanded in 2002 with the Sarbanes-Oxley Act. Congress was determined to outline better accounting controls for investor-owned companies. The act’s purpose was to make financial reporting one of management’s top priorities. The …

Accounting vs. Finance Functions

The board of directors of a nonprofit ultimately carries the responsibility for the financial performance of the organization. The chief executive, along with the help of senior management, provide board members with the necessary financial information to perform their job …

Support & Revenue for Nonprofits

Nonprofits accrue forms of revenue unique from other for-profit entities. Among these are service revenues, contributions and grants. A nonprofit’s balance sheet must reflect these particular categories. All records should be in accordance with GAAP standards for the nonprofits specialized …

Support & Revenue for Nonprofits

Nonprofits accrue forms of revenue unique from other for-profit entities. Among these are service revenues, contributions and grants. A nonprofit’s balance sheet must reflect these particular categories. All records should be in accordance with GAAP standards for the nonprofits specialized …

Ratios for Financial Statement Analysis

Ratio analysis is a primary analytical technique that when used properly is an effective way to evaluate a company’s financial standing. A key to the proper execution of ratio analysis is the employment of a variety of ratios to give …

Ratio Analysis

When financial analysts seek insight into annual reports, they employ ratio analysis as a primary tool. In fact, ratio analysis is the dominant analytical technique used in the analysis of financial statements. Although it is an important tool, it isn’t …

How Foreign Companies Accommodate North American Investors

Although financial statements from foreign countries may be difficult to read and interpret, there are ways they attempt to make them more user-friendly to North American investors. There are three main hindrances in understanding a foreign country’s financial statement. These …

Financial Reporting in Foreign Countries

The financial statements from companies from around the world typically reflect the cultural values and economic climate of their country. Because there is so much variation, investors may have a difficult time reading and interpreting the financial statements of foreign …