Nonprofit financial assessment and research service learning: Evaluating the performance of an animal welfare nonprofit organization

Abstract

The objective of this project is to evaluate the current financial and compliance status of an animal welfare nonprofit organization (NPO) by: analysis of trends over time using information reported on tax filings (Form 990); vertical and horizontal analyses of financial statements; analysis of trends over time using information from financial statements; reconciliation of financial statements to Form 990; ratio analysis of Form 990 Information; and comparison of reported information to local analogs and national standards. This project is conducted in collaboration with The Chapin Foundation. This research serves as a research service learning project with the participation of Master of Accountancy graduate students at Coastal Carolina University. Once the results are presented, recommendations are given for improving operational efficiency and achieving best practices. These recommendations are presented in the form of both short-term items to be addressed immediately-defined in this study as within 60 days-and long-term items to be undertaken in the future. Resources for applicable standards and requirements are also provided.

Accruals Management to Avoid The Current Ratio Falling Below One: An Empirical Analysis Among Nonprofits

“…In a similar vein, Charity Navigator (2020) considers a combination of financial efficiency performance metrics (including the program ratio), as well as financial capacity performance metrics (including the working capital ratio, with working capital being the equivalent of the current ratio 1 ) to assess charities' financial health. In courses in the accounting domain as well, the current ratio is being considered a relevant metric to assess financial performance in the nonprofit context (see, for example, Maguire, 2016). As an illustration, in an accounting project aimed at assessing the financial performance of an NPO, four different ratios are being considered, including the current ratio (Maguire, 2016).…”

“…In courses in the accounting domain as well, the current ratio is being considered a relevant metric to assess financial performance in the nonprofit context (see, for example, Maguire, 2016). As an illustration, in an accounting project aimed at assessing the financial performance of an NPO, four different ratios are being considered, including the current ratio (Maguire, 2016). So, although the number of ratios being considered in a nonprofit context appears fairly limited (cf.…”