Financial Benchmarking

NFP Analysts is benchmarking the relative financial performance of over 200 of Australia’s not-for-profit organisations. In our work with a variety of not-for-profit entities, we have discovered interest from their management and boards in more data comparing not-for-profit organisations.

Whilst the nature of not-for-profit entities means they do not operate to provide returns to shareholders, much can be learned from comparing their relative performance or examining trends in the sector. This project adds to ‘best practice’ by transforming financial data into valuable information

For the 1999-2001 financial period, NFP Analysts calculated that Not-for-Profit's equity grows at 9% per annum. This outcome are compiled from audited NFP figures.

Stage I of the benchmarking project involves analysing figures from the audited financial reports. The results of our process of financial analysis will show interesting degrees of financial performance, although profitability in itself is not one of the core drivers for such organisations. The outcomes will include:

• rankings of equity per year, profitability, taxation, extraordinary items

• percentage increase in equity

• income earned to expenditure

• return received compared to equity

Stage II of the Benchmarking project will be a qualitative and quantitative survey of further data of interest to not-for-profit organisations. Interested bodies will be asked to complete a questionnaire. Typical information to be asked in Stage II includes:

• Financial issues to do with source of income and reason for expenditure

• Systems, databases and technology used

• Type of not-for-profit entity, such as national or federal or state based

• Size, term of office and composition of governing board of directors

• Means of appointment of office bearers

Does your organisation wish to participate in NFP Analysts’ Financial Benchmarking project?

If you would like your not-for-profit organisation to participate in the analysis, please send your most recent audited accounts and Annual Report to:

NFP Analysts
PO Box 810
Artarmon
NSW 1570

Participation is encouraged and is cost-free.