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MindBridge not-for-profit with funds library

  • Updated

Summary

The not-for-profit with funds library supports workflows leveraging fund and program accounting. If you capture fund or program details within your workflow, this is the library to use, as it includes ratios and control points specific to not-for-profit accounting, such as the Liquid Funds Amount and Fund Expense Flurry.


Not-for-profit with funds account grouping

We have extended the scope of the MindBridge Account Classification (MAC) system to facilitate not-for-profit concepts such as contributions and grants.


Not-for-profit with funds account grouping

Operating Reserve

(Expendable Net Assets / Total expenses)

Helps identify whether or not your client’s resources are sufficient and flexible enough to support their mission without borrowing externally. It also measures an organization's ability to fund programs and other expenses using expendable net assets, should no additional operating revenue be available.

Change in Net Assets

(Revenues Expenses)

Measures an organization’s financial performance by answering the question, "Did the organization live within its means during the fiscal year?" While an organization's success shouldn't be judged by a positive or negative change in net assets over one year, consecutive deficits could be a cause for concern.

Operating Margin

([Revenues – Expenditures] / Revenues)

This is a great forecasting ratio since it measures a not-for-profit’s ability to produce a potential surplus, which could be drawn on if needed in future years.

Defensive Interval

([Cash + Marketable Securities + Receivables] / Average Monthly Expenses)

Reflects the number of months an organization could operate if no additional funds were received.

Liquid Funds Amount

(Dollar Value of Unrestricted Net Assets Net Fixed Assets + Mortgages and Other Notes Payable)

Provides a common size value that quantifies your client’s unrestricted liquid dollar amount available to meet current obligations.

Viability

(Expendable Net Assets [Including Unrestricted and Temporarily Restricted Net Assets] / Long-Term Debt)

Measures a not-for-profit’s relative liquidity - or ability to cover its debt. It serves as a basic indicator of financial strength since it measures your client’s cash availability, and other liquid assets, to meet their financial obligations.

Current Ratio

(Current Assets / Current Liabilities)

Measures an organization's ability to meet short-term financial obligations by comparing an organization’s current assets to current liabilities.

Fundraising Efficiency

(Fundraising Expense / Contribution Revenue)

Measures a fundraising initiative’s efficiency by dividing the expenses associated with the initiative by the contributions that were a result of it.


Not-for-profit with funds filters

In addition to the 14 the not-for-profit library filters, this library adds four filters specific to not-for-profit with funds accounting:

  • Fund Expense Allocation
  • Unrestricted Fund Cash Expenditures
  • Restricted Fund Cash Expenditures
  • Reallocation of Amount Between Fundraising, Program and General and Administration (GA)


Not-for-profit with funds control points

In this library, 4 new rule-based and machine learning control points have been added, in addition to the original 29 rule-based, statistical, and machine learning control points.

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