Instruction
Section 1 - Mission and Performance Analysis (based on the annual report)
What is the mission of the organization?
How do the programmatic outcomes of the organization contribute to its societal impact?
What data does the organization provide that allows users to measure whether it is meeting the objectives of its mission?
Which specific data in the annual report provides the best performance measure of the organization’s societal impact? Explain your answer
Section 2 - Financial Analysis (based on the audited consolidated financial statements and the notes to the financial statements)
What is the trend of the organization’s current ratio (current assets/current liabilities)? Did it improve, deteriorate or remain stable from 2019 to 2020?
Provide the amounts in a table
What was the organization’s main source of revenue and highest expense (for the years presented)?
Provide the amounts in a table
Was the organization’s revenues sufficient to cover its expenses (for the years presented)?
Provide the amounts in a table and calculate the ratios for total revenues/total expenses
Does the organization participate in business-like activities? If so, what are they and how do they contribute to the organization’s financial performance?
Section 3 - Operational Analysis (based on audited consolidated financial statements)
Is the revenue for the organization growing over time?
Provide the amounts in a table
Was there a shift in the types of revenues earned and support provided to the organization from 2019 to 2020?
For 2019 and 2020, calculate the percentage of revenue/total revenues for: (1) contributions (all), (2) revenue from contracts with customers and (3) return on investments and provide the percentages in a table
Was the organization’s contributions received greater than its fundraising expenses (for the years presented)?
Provide a table with the amounts and calculate the ratios for contributions/fundraising expenses
Does the organization’s 2020 expense allocation directly align with achieving its overall mission? Explain how you reached your conclusion
Section 4 - Financial Reporting Objectives (based on annual report and audited consolidated financial statements)
Table 1-4 in Chapter 1 of the textbook presents the FASB’s objectives of financial reporting for not-for-profit organizations (I will provide picture of the table in the attachments)
For the organization, identify and describe exactly how (with specific annual report and financial statement examples) three of the financial reporting objectives from Table 1-4 are met based on information provided in its annual report and audited consolidated financial statements
Section 5 - Service Efforts and Accomplishments
Is the organization accomplishing its goals? How?
Was a reasonable amount (support expenses/total expenses) spent on administering the organization (for the years presented)?
Provide the total amounts and percentages in a table. If this percentage is very low, the organization may not be investing enough in its administrative support. If the percentage is very high, there may be cause for concern about it contributing enough to its mission and programs.
Do the benefits of providing services exceed the costs of delivering services for the organization? How did you reach this conclusion?
Section 6 - Decision-making and Recommendations
If you were making a decision to donate to National Public Radio, Inc. (NPR, Inc.), would you donate to support the organization? Why or why not?
Not-for-profit organizations are struggling to stay alive during COVID-19. In what ways do you think the pandemic will affect the financial sustainability of NPR, Inc.?
What is one financial management recommendation that you would give the organization to survive the pandemic?
Style Expectations for Your Submission:
Use complete sentences and paragraphs
Six paragraphs in total with accompanying tables presented after each paragraph:
First paragraph - Response to Section 1 questions
Second paragraph - Response to Section 2 questions
Section 2 tables
Third paragraph - Response to Section 3 questions
Section 3 tables
Fourth paragraph - Response to Section 4 questions
Fifth paragraph - Response to Section 5 questions
Section 5 table
Sixth paragraph - Response to Section 6 questions
Single-spaced and 12-point font
DO NOT include a title or the assigned questions in your submission
Submit a Word or PDF file only (unreadable file formats will receive a grade of 0)
Plagiarism will not be tolerated
If you obtain information from outside of the organization’s annual report and audited consolidated financial statements, you must cite your sources in a references page in American Psychological Association (APA) format
Visit Purdue University’s Online Writing Lab (OWL) website for reference page guidance: https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_style_introduction.html (Links to an external site.)