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NFP project on the Make-a-Wish foundation.
1) What public accounting firm performed the audit of the entity’s financial statements?
2) Is it possible to determine which firm/individual prepared the form 990. If so, who? Is it the same organization for both documents (990 and audited financials)?
3) Does the form 990 have a schedule A. Does it identify the reason for the charity status? What is the reason?
1) On the audited financials, what “Program” accounted for the largest expense? Is this what you would have expected.
2) Does the organization have “donor restricted” and “without donor restricted” net assets? What is the nature of these restrictions? Note – before ASU 2016-14 these were entitled temporarily and permanently restricted net assets.NFP project on the Make-a-Wish foundation.
1) What is the program expense ratio of this organization? Program expense ratio = program service expenses/ total expenses. Calculate this number using both the audited financials and the form 990. Are the ratios different? Why?
For most organizations this number should be at least 65%. Please show us the numbers you used in your calculations.
2) What are the proportion of resources being used for fundraising activities (fundraising expenses divided by total expenses)? Please show us the numbers you used in your calculations.
3) What are your thoughts on the financial condition of this organization? You can look at liquidity, size of its liabilities, where is the entity receiving its revenue and support, its access to other fiscal resources.
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