nonprofits,local leaders & Grt.New Haven business sharing information
By Jane Ford
Do you understand the financial reports that you receive each month with your board packet? Financial oversight is a major responsibility of all nonprofits board members, not just the treasurer. By the time you finish reading this article, you will have two quick tools to help you better use those financial reports. Just as for-profit businesses use ratios to evaluate their finances, nonprofits can use similar ratios to help better understand their financial reports. This article explains two key ratios that every board member needs to understand. Information for the ratios comes from the Statement of Financial Position (called the Balance Sheet in for-profit accounting). Board members should receive this report monthly.
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