Posted: November 21st, 2022
What produces its cash flow for the year shown?
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For this activity, choose a non-profit organization that you can get IRS Form 990 information from. This can be one of the organizations you’ve been working with, or can be a new one altogether. Usually the Form 990 is posted on their website under “About Us” and then “Financial Information.” Be sure to get the 990 Form, not the “Annual Report” or another form. If the 990 is not available, then choose another organization for this activity. Review the 990 Form, and write an analysis of the organization’s finances. Here are some questions for you to consider:
Does the organization appear to have diversified sources of revenue?
How vulnerable or unpredictable are these sources likely to be?
What were its major categories of expenses for the year shown? What unforeseen expenses could arise?
What kinds of assets does it hold?
Does it have debt?
What produces its cash flow for the year shown?
Does it have endowment or other permanently restricted assets?
I expect this activity to be completed in 3-5 double-spaced pages.
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