Guide Start: A Financial History Of The Organization’s Net Income

Guide Start: A Financial History Of The Organization’s Net Income

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Task В: Explain the CBO’s sources of funding and areas of expenses. You may find information from annual reports or financial statements from your CBO and through the Guidestar website: https://www.guidestar.org

 

  •  Major Sources of Revenue: Consider the following sources of revenue and discuss which ones your CBO relies on and what percentage of total funding each represents:
  •  Does the organization charge for services? If so, describe the how pricing works (sliding scale, flat fee, by-the-hour, membership, etc.)
  •  Does the organization sell anything? The Goodwill, for example, sells products.
  •  Donations: Describe major sources of donations, including individual or corporate donations.
  •  Fundraising: Many CBO’s hold fundraisers that account for a significant amount of revenue. Describe the events and their profitability.
  •  Grants/government funding: Does the CBO
  •  Receive grants from local, state or federal government sources? Identify the agency or organization providing such grants and the purpose of the grants.
  •  Major Sources of Expenditure: Discuss where the organization spends its revenue and what percentage of total expenses each represents. Information available should allow you to determine:
  •  Salaries and benefits
  •  Fundraising expenses • Program expenses
  •  Administrative expenses: A key metric for CBO’s is the amount of administrative expenses incurred as a percent of total expenses. Determine this percentage for your CBO.Financial Trends: Discuss financial sustainability. Is the CBO financially stable, declining, or growing? The Guidestar website may provide a financial history of the organization’s net income year-over-year.

 

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