Connecting money and mission can be difficult in the nonprofit sector. Ensuring that funding decisions advance mission and can be appropriately stewarded requires a solid grasp of nonprofit resource needs and financial health. Financial SCAN is a quick, clear, and comprehensive online analysis tool that illustrates a nonprofit’s financial picture through a dashboard of relevant indicators, thirteen detailed trend graphs, and a peer comparison function. Join us for a one-hour webinar to see Financial SCAN and its new features in action. The session will take a case study approach, exploring how you can use Financial SCAN’s multi-year and peer financial data in your grantmaking practice. Presenters: Peter Kramer, Manager, Nonprofit Finance Fund, and Scott Menzel, Product & User Experience Manager, GuideStar USA (moderator)

1. Weaving Financial Data Into
Your Grantmaking Process:
Interpretation and communication with Financial SCAN
Scott Menzel
Product & User Experience Manager
GuideStar
Peter Kramer
Manager
Nonprofit Finance Fund
December 10, 2013

2. AGENDA
Introduction to Financial SCAN
New Feature Overview
Brief Online Tour
Case Analysis
Q&A

3. When it Comes to Nonprofit Finance,
Funders Face Common Challenges
 Knowing which metrics to focus on for assessing
financial health
 Having the time and skills to collect, parse and
apply financial data to inform grantmaking
decisions
 Fostering a candid dialogue with grantees about
financial health and resource needs

4. Financial SCAN: A New Analysis Filter
on 990 Data
Sound Financial Health
Strong Organizations
Quality Programs
Effective Solutions
Financial SCAN demystifies nonprofit data and
illuminates nonprofit financial health, providing the
field with knowledge and tools for building and
sustaining healthy, effective organizations.

5. 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, making data driven decisions, and
involved in making social impact
strengthening grantmaker-grantee dialogue
Who: Private and public grantmakers/donors,
Nonprofit organizations, private and public
WHO
nonprofit organizations, philanthropic advisors,
grantmakers, individual donors, philanthropic
consultants and advisors, and consultants
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 (313K orgs)
*Note: Financial SCAN does not include data from Forms 990 EZ

6. What’s in a Financial SCAN?
Organizational Dashboard: Five
years of key financial trends and ratios
Graphs & Explanatory Text: More
detailed overview of an organization’s:
 Expenses
 Revenue
 Profitability
 Balance Sheet
 Liquidity
Peer Comparison Dashboard: Select
peer organizations for financial
benchmarking

7. How are Funders Using Financial
SCAN?
 Adds, strengthens and/or focuses
financial component of due diligence
 Helps identify financial strengths and
red flags
 Informs conversations among
grantmakers and their grantees about
financial health and needs
 Saves time and resources
“This innovative new
tool builds the financial
management capacity of
nonprofits and helps
grantmakers engage
with their grantees
about financial health
and funding needs.”
Kathy Reich,
David & Lucile Packard Foundation

8. Financial SCAN 2.0: New Features!
 Excel Download
 Peer Group Comparison
 Customized Enterprise Access
 7 Day Nonprofit Access

9. Brief Online Demonstration

10. Key Considerations: What 990 data can and
cannot do
990 data CAN help:

Understand an organization’s financial trajectory and recent
revenue, expense, and balance sheet dynamics

Show how an organization compares to its peers across
standardized fields
990 data CANNOT:

Provide the authoritative and most up-to-date financial picture
of your organization

Tie exactly to the information presented in an audit

Show revenue restrictions

Distinguish between operating dollars and capital dollars

11. Meet Today’s Case Organization:
REAL WORLD SKILLS

MISSION: To prepare underserved youth for lasting
careers and self-sufficiency

PROGRAMS:
 Personal & professional skill-building
 Summer internship placement
 Trade programs and certifications

RECENT DYNAMICS:
 Steady yet modest growth
 New location and dated equipment
 Beginning strategic planning process

12. REAL WORLD SKILLS

13. Dashboard: Income Statement

14. Dashboard: Balance Sheet

15. Peer Comparison Dashboard:
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16. Topics Explored in
Financial SCAN Graphs:
 Expense detail & composition
 Revenue detail & composition
 Profitability
 Full cost of doing business
 Asset composition
 Depreciation of fixed assets
 Liability composition
 Liabilities as a % of assets
 Liquidity

17. With the exception of 2008, surpluses
and deficits have been close to breakeven
But are surpluses
adequate to build
financial
resilience?
RWS has effectively managed this growth by
consistently covering its operating costs to achieve
marginal surpluses

18. RWS’s liquidity has fluctuated somewhat over
the period, but has been consistently tight
Available liquidity represents a nonprofit’s ability to
handle risks and seize new opportunities.

19. Observations & Recommendations for
REAL WORLD SKILLS
Observations from Financial SCAN:
 Modest growth over last several years
 Reliable mix of revenue sources
 Relative to peers, few fixed assets
 Tight liquidity constrains ability to innovate
Recommendations for Funders:
 Acknowledge strengths (e.g., reliable revenue, surpluses
in most years, etc.) and encourage business planning in
strategy process
 Discuss with RWS leadership the amounts and types of
capital needed to help the organization build working
capital and reserves and adapt to the changing job
market

20. Q&A

21. Thank you!
Peter Kramer
Manager, Advisory Services
Nonprofit Finance Fund
617-204-9772
peter.kramer@nffusa.org
To learn more:
www.guidestar.org/financialSCAN
nonprofitfinancefund.org
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