Financial Series - The IRS Form 990 as a Tool for Understanding Organizational Capacity

When:

Thursday, March 30, 2017 -

9:00am to 11:00am EDT

Where:

Philanthropy New York, 1500 Broadway, 7th Floor, NYC

Members of PNY & Partner Orgs:

Non-Members:

Add to Calendar

This program is a part of the Financial Series from our PNY Core:

February 15 – Financial Series: Intro to Financial Statements
March 2 – What to Look for in a Nonprofit’s Financial Statement
March 9 – Looking at the 990 Part 1 of 2
March 16 – Looking at the 990 Part 2 of 2
March 23 – Using Financial Statements Together with IRS Form 990 to Understand Your Potential Grantees
March 30 – Applied Finance: The IRS Form 990 as a Tool for Understanding Organizational Capacity

Nonprofit organizations face increasing challenges in today’s operating environment. In order to better understand the realities facing nonprofits and make sound funding decisions, grantmakers must have a firm grasp of the story told by the numbers as well as an awareness of the gaps in capacity that may be hampering an organization’s impact. Focusing on effective approaches to reading and interpreting the IRS Form 990, this workshop will equip grantmakers to understand their grantees’ financial health and how it connects to overall organizational capacity.

The session will address the financial health and organizational capacity of individual nonprofits and will be structured to include hands-on work with concepts and tools applicable to grantees across a range of mission areas and business models.

To make the most out of your session, please bring a copy of one of your grantee’s IRS Form 990, preferably one with which you are familiar, from a grantee organization that has changed a lot and/or is growing.

Explore

The differences between the Form 990 and audited financial statements and what you might be missing if you rely solely on one or the other
How to calculate and interpret key indicators of financial health and sustainability using both the audit and the Form 990, including:
- Liquid Unrestricted Net Assets (LUNA)
- Months of cash on hand
- Operating results
- Resource allocations among functions
Key non-financial information in the form 990 that provides insights into an organization’s capacity in the areas of governance, leadership, and fundraising
Identify key measures that will reveal the nonprofit’s sustainability