tag:blogger.com,1999:blog-974373480871568862.post2807434697982027219..comments2023-07-26T06:10:26.642-05:00Comments on Accountablity Wizardry: Weathering The Storm - Financial Health standardrbrownhttp://www.blogger.com/profile/08631464726276469313noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-974373480871568862.post-72225876281597099282009-08-14T14:39:22.902-05:002009-08-14T14:39:22.902-05:00One quick change to what I posted earlier. The th...One quick change to what I posted earlier. The thrid sentence should read, "...a nonprofit has the following unrestricted net asset gains or losses over the last 3 years:"mwerahttps://www.blogger.com/profile/15691690292728379261noreply@blogger.comtag:blogger.com,1999:blog-974373480871568862.post-60539473821942007862009-08-14T14:06:23.759-05:002009-08-14T14:06:23.759-05:00Good questions, thanks for asking for clarificatio...Good questions, thanks for asking for clarification. Here's an example. Say a nonprofit has the following year-end unrestricted net asset balances:<br /><br />Year 1) $-10,000<br />Year 2) $15,000<br />Year 3) $-20,000<br /><br />This nonprofit would meet the first part of the standard (having at least one year with positive unrestricted net assets), but wouldn’t meet the second part since the cumulative total over the 3 years is negative ($-10,000+$15,000+$-20,000=$-15,000). In order to meet this standard, an organization would have to meet both aspects. This is a bit more stringent than our current Financial Health standard (which looks at total net assets), but the financial experts we worked with on this standard all agreed that unrestricted net assets is what one should look at.mwerahttps://www.blogger.com/profile/15691690292728379261noreply@blogger.comtag:blogger.com,1999:blog-974373480871568862.post-44287926635752585542009-08-13T13:51:58.444-05:002009-08-13T13:51:58.444-05:00This one confuses me. I'd like to see more spe...This one confuses me. I'd like to see more specifics. How do you plan to measure "Has a positive trend in its three-year cumulative unrestricted net asset balance."Sara Leistenoreply@blogger.com