To read this content please select one of the options below:

A Case in Assessing the Financial Stability and Effectiveness of 501(C)(3) Organizations

Charles A. Barragato (Stony Brook University, USA)
Christie L. Comunale (Stony Brook University, USA)
Stephen Gara (Drake University, USA)

Advances in Accounting Education: Teaching and Curriculum Innovations

ISBN: 978-1-80382-728-5, eISBN: 978-1-80382-727-8

Publication date: 12 December 2022

Abstract

Individuals and corporations give generously to nonprofit organizations. However, supporters are naturally concerned about the financial strength and operational efficiency of an organization. Using publicly available nonprofit databases and websites, this case exposes students to a real-world scenario in which students analyze a 501(c)(3) organization of their choosing using GuideStar data and select Better Business Bureau Wise Giving Alliance criteria in five areas: governance and oversight, effectiveness, finances, fundraising and information materials, other financial and non-financial performance measures. The overall learning objective of this case is to enhance students’ understanding of a nonprofit’s financial and non-financial performance through research and analytical procedures. This case helps to fill a void by familiarizing students not only with standard nonprofit financial performance metrics, but also important non-financial areas related to governance, mission-driven goals, and organizational transparency. It also affords students the opportunity to develop a more thorough understanding of key accounting and non-accounting issues associated with nonprofits, which are not always explicitly or implicitly covered in textbooks.

Keywords

Citation

Barragato, C.A., Comunale, C.L. and Gara, S. (2022), "A Case in Assessing the Financial Stability and Effectiveness of 501(C)(3) Organizations", Calderon, T.G. (Ed.) Advances in Accounting Education: Teaching and Curriculum Innovations (Advances in Accounting Education, Vol. 26), Emerald Publishing Limited, Bingley, pp. 155-173. https://doi.org/10.1108/S1085-462220220000026009

Publisher

:

Emerald Publishing Limited

Copyright © 2023 Emerald Publishing Limited