Free Nonprofit Accounting Advice
The Four Most Common Financial Performance Metrics
Watchdog organizations often determine the effectiveness and efficiency of a nonprofit using various ratios and metrics. The four most common metrics are: program expense, administrative expense, fundraising expense, and fundraising efficiency.
Develop an Internal Control Program
Internal controls are not a subject that nonprofits can ignore. With an internal control system, you are not just protecting your assets, you are protecting your public image and reputation. Organizations that are tax exempt are often held to a higher code of ethics and, thus, are hurt more when fraud has been committed.