1. What is the benefit theory and how is it organized? The benefit theory is a theory that
helps us understand nonprofit revenue and that guides the formation of revenue strategies.
This theory classifies nonprofits based on the benefits they ge
Chapter 3 Discussion Questions
1. Why is "being liquid" so important for nonprofits?
A level of liquidity is necessary for nonprofits because it allows them to meet their operating
expenses and other current obligations. This includes their monthly bills
Chapter 11 - Time Value of Money and Cost Benefit Analysis
1. Why is the concept of the time value of money important to a nonprofits fiscal health?
The concept of the time value of money reflects the fact that money available at the present
time is worth
Chapter 12 - The DFC Considers Which Repayment Schedule to Select in Bond Financing its
We are a growing non-profit with a passion for drug rehabilitation. As we grow we
develop more complex resources and fac
1. The difference between current and long-term assets is that current assets are assets that
are cash, or can be turned into cash within one fiscal year, whereas long-term assets are
assets such as property and equipment that cannot be easily b
Chapter 4: Costs and Cost Analysis
1. Why is the concept of opportunity cost important for nonprofits?
It is important because it focuses the nonprofit on the idea that there is value being forgone
and resources being used up when they decide to implement
1. Why are financial ratios useful in financial analysis? Ratios help to flush out the true
financial standing of the company. Ratios may provide the readers of the financial
statements with answers to things about the company that may not be ga
1. What are performance measurements? Performance measurements are measurements
on a regular basis of the results (outcomes) and efficiency of service or programs.
2. What are inputs? (Give an example). Inputs are the resources used to conduct
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Chapter 9 Case Study
An Environmental Nonprofit Considers Extending its Cleanup Program
I am the Chief Financial Officer of an organization located in a rust belt community. The
mission of my orga
Chapter 2 Discussion questions
1. Planning- Budgeting is the process in which nonprofits can examine their circumstances to
determine their resources and how they can best use them. Budgeting is how an organization
plans to use its resources.
1. What effects did the 2008 recession have on the nonprofit world?
The recession of 2008 affected the cash flow and funding of the nonprofit world. Nonprofits
experienced a serious disruption of their cash flow and sharp decrease in the contri
Financial Analysis Of The Montana Mentoring Nonprofit
Montana Mentoring is a small nonprofit company. Due to the content given about the
company, there is little known about it other than it is visible that they have no long term
1. What is a fiduciary?
A fiiduciary is an individual or organization holding assets for another party. The board of
directors is the fiduciary of the nonprofits assets.
2.What are the boards fiduciary responsibilities?
The board has fiduciary
1. When is it necessary for a nonprofit to create a capital budget?
It becomes necessary to create a capital budget when you start working with long-term
2. What impacts can a capital budget have on an operating budget?