Developing a Prototype Financial Health Report for Nonprofit Managers
The Nonprofit Finance Fund (NFF) is a nonprofit organization providing financing and technical assistance for nonprofit organizations. NFF, in its mission to help realize a strong and well capitalized nonprofit sector, requested a Capstone team to develop an analytic tool for use by nonprofit managers to assess their organizations financial health. Research included an exhaustive review of financial measures used in the private, public and nonprofit sectors, academic literature and websites that present large amounts of data in a succinct manner. The information was analyzed and 17 measures of financial health incorporated into a prototype analytic tool. Using the prototype, NFF will be able to develop a working model for their clients to understand and benchmark their organizations financial health over time and in comparison to peer organizations.