Findings from the Minnesota CFO Survey

Transcription

1 Findings from the Minnesota CFO Survey Kari Aanestad, development manager, Minnesota Council of Nonprofits; Kate Barr, president and C.E.O., Propel Nonprofits; and Jon Pratt, executive director, Minnesota Council of Nonprofits

2 Respondent Universe 241 responses RESPONDENTS BY BUDGET SIZE $0 - $400,000 $400,000 - $1 million $1 - $5 million $5 million

3 Respondent Universe 25.00% Activity area 20.00% 15.00% 10.00% 5.00% 0.00% Responses

4 Comparing Major Activity Areas Budget Sizes by Activity Area $5 million + $1 million - $5 million $400,000 - $999,999 $0-$399,999 # of Responses A - Arts, Culture & Humanities B - Education P - Human Services

5 Current Conditions

6 Average % of Revenue Mix (All Respondents) Unallocated Earned Income (fees, sales, etc.) Charitable Giving (Federated Giving, Individual, Corporations, Foundation) Government Grants Government Reimbursed Service Fees

7 Average % of Revenue by Source Unallocated Endowment/investment income Earned Revenue Contributed Revenue (Individuals, Corporations, Foundations) Other government grants Government reimbursed service fees (ex. Medicare) Average % of revenue for each budget cohort s response $5mil+ $1-5mil $400,000-$1 mil $0-$399,999 All Respondents

8 Unallocated Sales/special events/social enterprise/etc. Endowment/investment income Fees/dues/program service revenue from non- Foundations Corporations Individual giving Federated giving (United Way, etc.) Other government grants Government reimbursed service fees (ex. Medicare) Revenue Mix by Activity Area 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% P - Human Services B - Education Arts, Culture & Humanities

9 % Change in Expenses from Prior Year Decrease more than 25% Decrease 15-25% Decrease 5-15% Within 5% of prior year Increase 5-15% Increase 15-25% Increase more than 25% # of Responses All Respondents $0-$399,999 $400,000-$1 mil $1-5mil $5mil+

10 All Respondents Surplus Surplus Responses for both of these questions were generally the same across budget cohorts

11 Orgs with >50% Gov t Revenue Surplus Surplus

12 Orgs with >50% Earned Income Surplus Surplus

13 All Respondents

14 Orgs with >50% Gov t Revenue Compared to all responses

15 Orgs with >50% Earned Income Compared to all responses

16 All Respondents

17 All Respondents 70% 60% 50% 40% 30% 20% 10% 0% How would you describe the overall vitality of your organization? Our organization operates smoothly and is fully positioned to meet the challenges ahead. We are coping but probably not ready for any more challenges. Despite vigorous efforts we seem to be losing ground. We are barely surviving.

18 Orgs with >50% Gov t Revenue

19 Orgs with >50% Earned Income

20 Comparative Years

21 Comparative Years

22 Comparative Years

23 Current Practices

24 All Respondents

25 All Respondents 60% 50% 40% 30% 20% 10% 0% How are staff in the organization educated on interpreting and understanding financial information that is shared? Regular informal presentations Organized trainings by internal staff Organized trainings by outside parties Expectation that staff are knowledgeable coming in to the organization None of the above NA

26 All Respondents

27 All Respondents

28 All Respondents 70% 60% 50% 40% 30% 20% 10% 0% How is the board educated on interpreting and understanding financial information that is shared? Regular informal presentations Organized trainings by internal staff Organized trainings by outside parties Expectation that board members are knowledgeable coming in to the organization None of the above NA

29 All Respondents

30 Finance Professionals

31 Who Performs the Financial Function? Combination of organization staff and contracted workers Contracted workers Organization staff # of Responses $5mil+ $1-5mil $400,000-$1 mil $0-$399,999 All Respondents

32 All Respondents

33 All Respondents

34 Background of Top Financial Manager Happened to be there and assigned duties Transitioned from for-profit sector Transitioned from program or other role in organization Nonprofit finance is chosen career # of Responses $5mil+ $1-5mil $400,000-$1 mil $0-$399,999 All Respondents

35 For all who took on finance role because they happened to be there

36 Nonprofit Finance & Gender

37 Future Changes

38 Expect Change in Individual Giving due to New Tax Law? No change anticipated Yes, small decrease Yes, large decrease Yes, small increase Yes, large increase 0% 10% 20% 30% 40% 50% 60% 70% 80% $5mil+ $1-5mil $400,000-$1 mil $0-$399,999 All Respondents

39 Average % of Revenue by Source Unallocated Endowment/investment income Earned Revenue Contributed Revenue (Individuals, Corporations, Foundations) Other government grants Government reimbursed service fees (ex. Medicare) Average % of revenue for each budget cohort s response $5mil+ $1-5mil $400,000-$1 mil $0-$399,999 All Respondents

40 All Respondents 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Has your organization prepared for or decided how to address the new presentation formats included in the Accounting Standards Update on Presentation of Financial Statements for Not-for-Profit Entities (ASU )? We have already adopted the new standard. We have discussed this internally and are making plans. We are aware of it but have not taken specific steps yet. Not sure how this will affect the organization

41

42 Results by Budget Cohort

43 Organization Budget Size $5 Mil + Compared to all responses

44 Organization Budget Size $1 Mil - $5 Mil Compared to all responses

45 Organizations Budget Size $400K - $1 Mil Compared to all responses

46 Organizations Budget Size $0-$400K Compared to all responses

47 Supplemental Data

48 All Respondents Responses for both of these questions were generally the same across budget cohorts

49 Organization Budget Size $5 Mil +

50 Organization Budget Size $1 Mil - $5 Mil

51 Organizations Budget Size $400K - $1 Mil

52 Organizations Budget Size $0-$400K

53 All Respondents

54 Organizations Budget Size $0-$400K 0.93 FTE Average per respondent Background of Top Financial Manager Happened to be there and assigned duties 60% Transitioned from for-profit sector 13% Transitioned from program or other role in organization 13% Nonprofit finance is chosen career 20% 0% 10% 20% 30% 40% 50% 60% 70%

55 Organizations Budget Size $400K - $1 Mil 0.9 FTE Average per respondent

56 Organization Budget Size $1 Mil - $5 Mil 1.5 FTE Average per respondent 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% What is the background of the organization s top financial manager? Nonprofit finance is chosen career Transitioned from Transitioned from program or other for-profit sector role in organization Happened to be there and assigned duties Responses

57 Organization Budget Size $5 Mil FTE Average per respondent

58 Organizations Budget Size $0-$400K Average % of Revenue Mix (Orgs 0-$400K) Unallocated 12% Compared to all responses Earned Income (fees, sales, etc.) 45% Average % of Revenue Mix (All Respondents) Charitable Giving (Federated Giving, Individual, Corporations, Foundation) Government Grants 17% 57% Unallocated Earned Income (fees, Charitable Giving Government Grants Government 8% 23% 25% 46% 47% Government Reimbursed Service Fees 9%

59 Organizations Budget Size $400K - $1 Mil Average % of Revenue Mix (Organizations $400K - $1 Mil) Unallocated Earned Income (fees, sales, etc.) Charitable Giving (Federated Giving, Individual, Corporations, Foundation) Government Grants Government Reimbursed Service Fees 14% 51% 47% 30% 16% 0% 10% 20% 30% 40% 50% 60% Compared to all responses Average % of Revenue Mix (All Respondents) Unallocated Earned Income (fees, Charitable Giving Government Grants Government 8% 23% 25% 46% 47%

60 Organization Budget Size $1 Mil - $5 Mil Average % of Revenue Mix (Organizations $1 Mil - $5 Mil) Unallocated 7% Compared to all responses Earned Income (fees, sales, etc.) 44% Average % of Revenue Mix (All Respondents) Charitable Giving (Federated Giving, Individual, Corporations, Foundation) Government Grants 20% 48% Unallocated Earned Income (fees, Charitable Giving Government Grants Government 8% 23% 25% 46% 47% Government Reimbursed Service Fees 27% 0% 10% 20% 30% 40% 50% 60%

61 Organization Budget Size $5 Mil + Average % of Revenue Mix (Organizations $5 Mil +) Unallocated Earned Income (fees, sales, etc.) 3% 46% Compared to all responses Average % of Revenue Mix (All Respondents) Charitable Giving (Federated Giving, Individual, Corporations, Foundation) Government Grants Government Reimbursed Service Fees 27% 37% 34% Unallocated Earned Income (fees, Charitable Giving Government Grants Government 8% 23% 25% 46% 47% % 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%