April 2007

March marked the end of our 2007 fiscal year and we’re proud to report another year of growth in programs, lending and impact. On the lending side, we approved 60 loans totaling nearly $5 million to nonprofits in every field. Our training program reached 1,100 nonprofit managers and board members. We look forward to building on last year’s success and working with you to foster community development and helping create and maintain healthy nonprofit organizations.

This issue of Nonprofits Count:

• Analyzing Nonprofit Financial Information
• Helping Nonprofits Thrive - EMMA
• Upcoming Workshops
  
• NAF News

Analyzing Nonprofit Financial Information

Understanding your organization’s financial information is the building block for any financial discussion. A basic understanding of the reports is helpful, but valuable information can be learned from a more thorough analysis of the data.

Financial ratios can be used to deepen your understanding about the financial reports such as balance sheets and income statements.

A description of key financial ratios for nonprofits is now available on the NAF Web site. Once you’ve explored the ratios, use the financial ratio calculator to begin translating what your financial reports are telling you.

Helping Nonprofits Thrive - EMMA

As a child, Joe Sullivan was able to take guitar lessons from one of the nuns at St. Pascal’s in St. Paul for only a few dollars. Music lessons were cheap and teachers were in abundance. Today, this is not the case; virtually any music lessons available are private and tend to be on the expensive side.

Sullivan created East Metro Music Academy (EMMA) with the goal of providing quality music lessons that fit into the budgets of area families by creating a scholarship program to help with the costs. The organization began in Sullivan’s basement and offered a group guitar class and voice lessons. As it continued to grow, EMMA eventually moved into the Landmark Center in St. Paul, however; while the building was sufficient in terms of space, the parking was not. Oftentimes parents would drop their child off and drive around the building until the lesson was completed because parking was so expensive.

EMMA found a larger location that offered more space and plenty of free parking. However, it was in need of renovation in order to support the needs of the music teachers and students. Through his bank, Sullivan was referred to Nonprofits Assistance Fund and together, they were able to provide a loan to cover the cost of renovation. Today, EMMA has 36 teachers providing lessons to more than 300 students on a sliding scale.

This inspiring story can be found, along with many others, on the NAF Web site.

NAF News

Thanks for Support for Financial Management Programs
We would like to thank the General Mills Foundation and the John S. and James L. Knight Advised Fund of the Saint Paul Foundation for the recent grants. These funders make it possible for us to provide our training programs, expertise and individualized assistance to nonprofits who seek to strengthen their financial management skills and practices.

New Board Member
NAF has recently elected a new board member . President and CEO of Goodwill/Easter Seals in Minnesota, Michael Wirth-Davis brings more than 30 years of nonprofit and community leadership experience to help us continue to provide financial assistance to nonprofits.

“We are delighted to welcome Michael to our board,” said Kate Barr, executive director. “His knowledge and expertise will be invaluable as the organization works to extend its reach to nonprofits across the state and further establish itself as the expert on nonprofit financial management and continue to build effective client relationships.”

Nonprofits Assistance Fund is a nonprofit community development organization that fosters community development and vitality by building financially healthy nonprofits. Nonprofits Assistance Fund provides financing for working capital, cash flow, equipment and facilities projects with a focus on strengthening the operation and mission of nonprofits. We also offer financial management workshops and advice that improve nonprofits' capacity to carry out their mission.