financial analysis 8518361 2

5     pages of discussion and 2 pages of excel with the calculations. 

 

This paper requires you to assume the role of a philanthropic advisor to a high‐net‐worth individual interested in donating $1 million to charity. You have done some initial diligence on the sector and have narrowed your client’s choices to three equally reputable 501c3, non‐profit organizations. Your assignment is to pick one and convince the philanthropist to invest all $1 million in your choice (the philanthropist has requested one organization vs. splitting the money). You also will let the philanthropist know how this $1 million should be directed (i.e., restricted donation, unrestricted, endowment, program specific, time specific). 

 

Theme: Women’s Empowerment 

You decided you would like to donate to an organization focused on women. You want to make sure that your client’s money will be going to a worthy organization making real impact in this sector. You have $1 million to allocate. Understanding that organizations working in this area might approach women’s empowerment through highly different means ‐‐ grantmaking, women’s education or hands on programs that work with women directly ‐‐ you have narrowed your search to three organizations you think are all doing what they do extremely well (at least at first glance!). You also care about each of their missions equally. Using what you have learned in the course so far (and logic you have learned being on the planet for the past 23+ years), conduct a critical analysis of each organization and, based on your findings, choose one to invest the $1 million. To do so, you must thoroughly analyze each of the three organizations and backup your decision to go with one vs. the others with concrete data ‐‐ not personal opinions ‐‐ including strong analysis of the organizations’ financial health. Your work will be evaluated for objectivity, clear analysis, and a well‐supported argument for the organization you selected. 

 

The three organizations are: 

Global Fund for Women (
www.globalfundforwomen.org) 

Women for Women International (
www.womenforwomen.org) 

Barnard College (
www.barnard.edu) 

 

Information you will need including each organization’s 990 (use most recent year ‐ 2014), Annual Reports & Financial Statements, and program specifics can be found online. Note: Some might have a formal, downloadable Annual Report and others might have equivalent information on their website). You may use any other sources you like as well. 1 1 Note: No need to cite information provided by the organizations via their websites or on their annual report, etc. If you use other sources such as newspaper articles, readings from the Course, please reference in footnotes or endnotes.

 

 There is no right answer. You simply must defend your choice. 

 

GUIDING QUESTIONS Each of the three organizations has a distinct mission and approach to empowering women. In considering where to invest your $1 million, please assess whether each group is meeting its mission (i.e., has the appropriate programs/services, measures impact), whether it has resources available and whether it has the management and organizational capacity to fulfill its mission now, and in the long term. You may use the following questions as a guide. Note: Do not just focus on one organization in your answer, reference all three. 

1. Financial Position & Ratios: Which organization is the healthiest? How can you tell? What do the published financial statements and 990s show? Judge by their overall financial picture and operating budget, not by the size of their budget. Ratios to include: Current Ratio 1 and 2, UNA Ratio, Days Cash, Program vs. Administrative Expenses, Reliance, Fundraising Efficiency Note: please calculate all of the above ratios and include them in your attachment. You should only analyze, however, those ratios you think are relevant to your argument. Note when using current ratio and days cash: Please include a footnote that indicates which current assets and liabilities you are including in your ratio, and what you are including in cash and cash equivalents to calculate Days Cash. Just cash? Savings? Receivables? And why you did so. Note: Please use the most recent and same year Form 900 for each organization (look for 2013 printed in the top right corner of the first page of the 990).

 2. Organizational Capacity, Performance: Do you have confidence in the organization’s leadership? Can they raise the funds they require now and in the long term? Are the funds they do raise being used efficiently? Do they have the right staff and staffing structure? Do they plan for the future? Are they nimble and able to change if needed be? How efficient is the organization? How can you tell? Have they planned for growth? 

3. Outcomes and Impact: What about their programs? Are they effective? How can you tell? What type of impact are they having on their clients/constituents? It is clear where your money would go and what impact it would have? 

4. Making your Investment Decision: Taking what you’ve revealed in 1), 2), and 3), which of these organizations gets the $1 million? Give a brief summary of why you chose one over the others. Include how this $1 million should be directed (i.e., restricted donation, unrestricted, endowment, program specific, time specific).