How is your nonprofit doing compared to others? The answer can help you assess your growth, identify areas in need of improvement, and determine short- and long-term goals for your organization.
Insero & Co. offers a free peer analysis report that clearly enumerates the key metrics that are most important to your organization. We also review each report with you because even nonprofits that share the same subsector, size, geography, and other factors may have different financial needs depending on who they serve, how long they’ve been in business, access to resources, and other factors.
How profitable is your nonprofit?
Our peer analysis report provides insight into profitability, or the ability to generate consistent surpluses and cover costs beyond operating expenses. We look at profitability based on your unrestricted surplus or deficit before and after depreciation, with both figures shown as a percentage of expenses.
How reliable is your revenue compensation?
Another key metric we look at is revenue composition, which in an ideal world should be reliable and repeatable or replaceable. We break this comparison down into total revenue, program services revenue, membership dues, investment and government grant income, and other categories to achieve a clear picture of how your nonprofit’s revenue compares to that of peer organizations.
How do your expenses compare?
Under expense composition, we look at total expenses to support your mission and programs, including personnel, professional fees, occupancy, interest, and other expenses.
Do you have sufficient liquidity?
Liquidity is basically your financial safety net. We look at how many months of cash you have on hand, how many months of cash plus investments you have, and your estimated liquid unrestricted net assets.
How does your balance sheet compare?
Your balance sheet changes daily, so we take a snapshot to identify the resources you have to support your mission and the obligations you need to fulfill. We look at nearly a dozen line items, from cash and receivables to total net assets.
Learn more
Contact Insero & Co. today to receive your free peer analysis report. As a public accounting firm with decades of experience working with nonprofits, we’ll make sure you have the real-time, detailed, and easy-to-use information you need to make the right decisions to move your organization forward.
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About the Author: Kimberly Gangi
