Choose a not-for-profit organization of interest to you, and locate its annual report or financial statements. Annual reports can usually be found on the organization's website. Note: If you have difficulty finding some organizations or the annual reports or financials, contact your instructor for assistance.Find the line item totals for the following in the financial statements/annual report:Total revenue,Program service expenses, andTotal expenses.Calculate the ratio of the program service expenses to the total expenses.Post your findings on the discussion board along with your evaluation of the organization's effectiveness--based on the calculated ratio, do you believe they are managing their expenses well?In responding to your peers, would you feel comfortable donating to the organization (based on their ratio, not necessarily other aspects of their work). Why or why not?

Analyzing a Non-Profit Organization's Financial HealthFollowing the steps mentioned, here's an…

Answered: Choose a not-for-profit organization of…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter1: Overview Of Financial Reporting, Financial Statement Analysis, And Valuation

Section: Chapter Questions

Problem 5QE

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Choose a not-for-profit organization of interest to you, and locate its annual report or financial statements. Annual reports can usually be found on the organization's website. Note: If you have difficulty finding some organizations or the annual reports or financials, contact your instructor for assistance.
Find the line item totals for the following in the financial statements/annual report:
- 1. Total revenue,
  2. Program service expenses, and
  3. Total expenses.
- Calculate the ratio of the program service expenses to the total expenses.

Post your findings on the discussion board along with your evaluation of the organization's effectiveness--based on the calculated ratio, do you believe they are managing their expenses well?

In responding to your peers, would you feel comfortable donating to the organization (based on their ratio, not necessarily other aspects of their work). Why or why not?

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