Fund Development and Financial Performance of the Non-Profit Entity at XYZ Corp

My focus is on non-profit organizations (that help the homeless population/low income clients) and shelters that provide women/families to stay for a specified period of time. Each shelter has a program that the residents have to abide by to stay in compliance. Each person must have a job, seeking employment, or take advantage of an opportunity to learn to be a CDA. There are also other opportunities that are available that the residents can take advantage of. Each non-profit organization has funding from the government, Kiser, P. (2012), (pp. 46-50), private companies that help the organization, and with donations.

An organization’s current ratio shows how liquid the assets of the agency are by comparison to the short term debts that the agency must pay to continue its operations. This ratio is calculated by taking the assets that can be converted to cash within a year (current assets) and dividing it by the liabilities that are either currently due or will become due within a year (current liabilities). The current ratio, ideally, should be at

The current ratio shows the short-term debt-paying ability of the company also known as liquidity ratio. Components of the current ratio are current assets and current liabilities. To find the current ratio, divide current assets by current liabilities. For example if a current ratio was 2:1, then that company would be able to pay off its short term debt easily. But you should also look at the types of debt the company has because some assets might be larger. For the current ratio a rule of thumb is the ratio should be around 2:1. The company wants to at least make sure that the value of the current assets covers at least the amount of the short-term obligations. In 2013 the current ratio is 1.75 and in 2014 the current ratio is 1.8. This is showing a favorable

This chapter deals with the case study of the target organization with a lot of history and reputation spanning three decades.

Current ratio shows how well the company can pay off its short-term liability obligations. Short-term liabilities are debt due within the next year. Companies that have larger amounts of current assets are better able to pay off their current liabilities. The higher the ratio, the better able the company is to pay current obligations. A low ratio indicates the company is weighted down with current debt and the cash flow will suffer. The equation for current ratio

Solvency ratios: The solvency ratios debt to total assets ratio and times interest earned tells creditors if a company will be able to pay maturing debt and interest. Total liabilities divided by total assets is the debt to total assets ratio. Creditors will determine if a company can pay the maturing debt by the lower the percentage of the debt to total assets ratio the more likely it will be able to pay its debts. The times interest earned is income before income taxes and interest expense divided by interest expense. The result of this ratio will tell creditors and investors the company’s ability to pay interest as it comes due. The higher the result of times interest earned the easier it is for the company to pay their interest.

In this week’s lesson we are looking at the importance of having a chart of accounts in our nonprofit business. At HOPE which is the business that I support. The main focus is to house and provide support to those who are homeless, mentally ill and may be struggling with dual issues. Because there is a need in a nonprofit to show measurements to determine success in each area. Charts are created for every service area the HOPE supports ( Margolis, S. (2014, 11).

Until spending time in the nonprofit program at Johnson, I never considered the many different tasks associated with starting a nonprofit. Additionally, through growing up at a long-established nonprofit, I took for granted the work involved in establishing it as a 501(c)(3) nonprofit. The IRS website provides explanation for the many these required tasks needed to file for tax-exemption status. Filing the articles of incorporation and establishing bylaws remain crucial for an organization to receive recognition as a legal entity. However, establishing a nonprofit involves a great deal more than simply attaining tax-exemption status. Tschirhart and Bielefeld highlight many of these aspects, such as developing the mission and vision statements of the organization (Tschirhart and Bielefeld 49). As the reading from last week discussed, evaluating and acquiring resources for an organization should stem from the mission of an organization. Even more so, in order for that to take place, the organization needs established with a mission that will keep it rooted in its cause and a vision

Throughout my life I have volunteered for a few organizations. During my underclassmen years I volunteered at Seven Bridges Ranch throughout my summers. My responsibilities included taking care of all their horses, which meant, feeding, watering, grooming, exercising, etc. I was also kept up with some of the simple yard keep. Another great organization I volunteer for is called, 15 Forever Community Foundation. This is a foundation that gives 15,000 dollars to non-profit organizations. I have been doing this for three years, and the board members and I discuss what we want our funding focus is for the year, and then read each application, and decide who is best fit to receive the money. I have always loved being outdoors, and one of the non-profits

Firstly, the current ratio is used to determine the short-term to pay its maturing obligation and to have unexpected needs for cash. The current ratio’s formular is, current assets divided by current liabilities. According to Target 10-K Annual Financial Statement report, people

The financial management of any organization whether it be for-profit or nonprofit it is very important to having a successful outcome. Securing great financial management may be a little bit more important for the nonprofit sector because without proper funding the nonprofit cannot carry out the mission. The financial management of the nonprofit Habitat for Humanity will be analyzed thoroughly and recommendations will be made to help the organization remain financially successful.

Liquidity Ratio- There are several different types of liquidity ratios that can be used to determine a company’s ability to pay off short term debt obligations, but I will be using the Current ratio. I use this ratio because it shows a true picture of a company’s fiscal sustainability by accounting for all of the current assets and liabilities. The formula for Current ratio is CR= Current Assets/ Current Liabilities.

The student includes current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, and revenue and expense ratio for the years 2003 and 2004. *

To test a company’s solvency (ability to pay long-term expenses and to accomplish long-term growth), we should calculates its liquidity financial ratios such as working capital and current ratio.

There are many indexes regarding non-profit organization analysis, and financial evaluation focus on below aspects.