Ratios to the rescue – Assess your nonprofit’s health by the numbers

Description

Abstract: Ratios can help stakeholders keep an eye on an organization’s overall financial condition, identify worrisome and promising trends, and make informed decisions. This article suggests ratios that size up an organization’s general financial health, calculate its ability to cover expenses and assess how efficiently and effectively it uses its resources. A sidebar discusses how to avoid the “garbage in, garbage out” phenomenon.