GuideStar Demo (06/26/12) - Financial SCAN for Nonprofits
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The document introduces Financial SCAN, a new data platform that analyzes nonprofit financial health and sustainability. Financial SCAN draws data directly from IRS Form 990 to present key financial metrics and trends for over 280,000 nonprofits in an easy-to-understand format. It aims to provide nonprofits, funders, and other stakeholders with knowledge and tools to build and sustain effective organizations. Nonprofits report that Financial SCAN helps communicate their financial situation to boards and donors in a clear, compelling way and can inform strategic planning and benchmarking against peers.
GuideStar Demo (06/26/12) - Financial SCAN for Nonprofits
- 2. A New Industry Standard Sound Financial Health Strong Organizations Quality Programs Effective Solutions Financial SCAN demystifies nonprofit data and illuminates financial health, providing the field with knowledge and tools for building and sustaining healthy, effective organizations.
- 3. Why now? The sector lacks a common language and understanding of what it takes to keep a nonprofit in business and in balance Existing ratings platforms focus on metrics like “overhead” that have no bearing on nonprofit efficiency or effectiveness There is little agreement on what to measure, why it matters and how it links to mission success Financial data collection, reporting and analysis is time and skills intensive Everyday demands of running a nonprofit compete with funder/donor demands for myriad reports and data sets Data-crunching can supersede data-driven decision making in grant management and due diligence
- 4. Financial SCAN At a Glance What: Data platform for assessing nonprofit financial Data platform for assessing nonprofit financial WHAT health and fostering dialogue among all stakeholders health, decision making, and informing involved in making social impact dialogue grantmaker-grantee Who: Private and public grantmakers/donors, Nonprofit organizations, private and public nonprofit organizations, philanthropic advisors, WHO grantmakers, individual donors, philanthropic consultants and advisors, consultants and media media Draws data directly and automatically from How: Private and public grantmakers/donors, IRS Forms 990,* presenting complex nonprofit organizations, philanthropic advisors, HOW consultants and information in an easy-to-analyze and media communicate format (280K orgs) *Note: Financial SCAN v. 1.0 does not include data from Form 990 EZ
- 5. What are nonprofit users saying? Presents numbers in an accessible, holistic “There is nothing way along with definitions and text else available that can both improve our operations and Helpful for communicating recent financial educate our past with the Board supporters in such a compelling Allows for clear and comprehensive way.” comparison with peer organizations - Nonprofit Product Advisor User experience of generating report is quick and easy Looking at trends and benchmarking peers can help us plan
- 6. How are nonprofits using Financial SCAN? Leadership of one nonprofit organization says they lean on the report’s graphs to help communicate trends Uses include: Regularly used by: Board review, Executive Director, Board recruitment, and Development Director, and Communicating financial Board Finance and Executive needs to external audiences Committees They already plan to make changes that will result in a better cash reserve and cashflow management process
- 7. What’s in a Financial SCAN? Organizational Dashboard: Five years of key financial trends and ratios for a selected organization Graphs & Explanatory Text: More detailed overview of the nonprofit’s: Expenses Revenue Profitability Balance Sheet Liquidity Peer Comparison Dashboard: Comparison with up to five peer nonprofits you select
- 9. Nonprofit Finance Fund Thank you! Peter Kramer Senior Associate, Consulting Services 617-204-9772 [email protected] To learn more: www.guidestar.org/financialSCAN nonprofitfinancefund.org 8