How Do You Stack Up?

A Guide to Benchmarking

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Q 1. Do you know where to find information
for benchmarking your organization against
similar or peer organizations?
• A. Yes
• B. No

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 Peer Comparisons
• GuideStar (www.guidestar.org)
• “Premium/Pro members” have access to analysis tools
• Financial SCAN (Situation and Comparables Analysis)
• Register as a “free” user to just view Form 990s and basic organization information

• Charity Navigator (www.charitynavigator.org)

• Top Ten Lists – find out what the “best” charities are doing
• Registered Users can compare charities and analyze the sector
• registration is free!

• NYS Charities Bureau (www.charitiesnys.com)

• Free Access to Form 990s and Financial Audit Reports of nonprofit organizations
registered in NYS

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GuideStar – Financial SCAN

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 Peer Comparisons
• GreatNonprofits (www.greatnonprofits.org)

• The Foundation Center (www.foundationcenter.org)

• Foundation Benchmarks

• The National Center for Arts Research/DataArts

(www.culturaldata.org)

• The National Center for Charitable Statistics (www.nccs.urban.org)

• The Urban Institute’s Center on Nonprofits and Philanthropy

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Q 2. Do you know how to calculate financial
ratios?

• A. Yes
• B. No

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 Benchmarks & Ratio Analysis
• What can ratio analysis do for you?
• Brings another dimension to the understanding of your financial position
• Can help identify trends – good and bad
• Can help identify areas on which to focus
• Can allow for comparison to peer organizations
• Aids in your financial storytelling

• WARNING!
• Ratio analysis has limitations

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 Common Ratio Calculations

Leverage and
Percentage
Common Size Liquidity Coverage
Change
(Solvency)

Functional
Asset Revenue
Profitability Expense
Turnover Percentages
Ratios

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Take Away

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Q 3. Have you heard about ASU 2016-14?

• A. Yes
• B. No

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 ASU 2016-14
• Changes made to better enable nonprofits to “tell their financial
story” by:
• Reducing complexities
• Increasing consistency
• Improving disclosures and transparency of information

• Effective for CY2018 and FY2019 organizations (that’s right now!)

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 ASU 2016-14
• Transparency – Liquidity Ratios are becoming more important for all
nonprofit organizations thanks to ASU 2016-14.
• Qualitative – disclose how liquid resources are managed to meet cash needs
for general expenditures within one year of the balance sheet date
• Quantitative – disclose the availability of financial assets to meet cash needs
for general expenditures within one year of the balance sheet date

• New Policies
• Cash-on-Hand Policy and the # of days operating expenses your organization
strives to maintain
• How cash in excess of daily requirements is invested

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Questions or Tips to Share?

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 Contact Information
To learn more about how we can help you build a better nonprofit
accounting department:
❑ Visit our website at www.yptc.com
❑ Call us at 1-844-358-4023
❑ Email us at Hello@yptc.com

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