Financial SCAN 2.0 Delivers Deep Analysis of Nonprofit Financial Fitness
GuideStar and Nonprofit Finance Fund Upgrade the Only Online Service for Clear and Comprehensive Nonprofit Financial Health Assessment
WASHINGTON, D.C. and NEW YORK, N.Y.–Nov. 19, 2013–Today GuideStar and Nonprofit Finance Fund (NFF) launched version 2.0 of Financial SCAN (Situation and Comparables ANalysis), the only online service that provides comprehensive yet easy-to-understand analysis of U.S. nonprofits’ financial health. Financial SCAN draws data from Forms 990 received directly from the IRS and presents the information in an easy-to-read, shareable format with financial dashboards and graphs, an educational guide, and questions to prompt discussion among nonprofit leaders, grantmakers, donors, and advisors.
“At Surdna, we’re using Financial SCAN to help us manage the financial component of our due diligence in a more systematic way. Financial SCAN helps us foster discussion internally and with our grantees about the issues they are dealing with,” said Jonathan Goldberg of Surdna Foundation. “In combination with audited financials and organization and project budgets, Financial SCAN paints a powerful, comprehensive and visual picture of risks and opportunities associated with a potential grant.”
Updates to Financial SCAN include:
- Expanded peer comparison capabilities that allow for benchmarking against a cohort that users define based on nonprofit mission areas, geography, and organization size based on total assets, total expenses, etc.
- Excel download feature that makes it easier to customize and integrate Financial SCAN dashboards into management documents and presentations to funders, trustees, and advisors.
- New pricing, enterprise access, and report licensing options to make Financial SCAN intelligence more widely accessible.
- Longer Nonprofit Express Passes. Tax-exempt nonprofit organizations may access Financial SCAN for a full seven days at a discounted price of $250.
Financial SCAN interprets complex IRS Form 990 data to deliver a clear analysis of an organization’s true financial health. Graphs accompany explanations of financial health indicators that reveal trends in profitability, expenses, revenue dynamics, balance sheet composition, and liquidity.
“Our Overhead Myth campaign highlights just how misleading the ‘overhead ratio’ is and why it’s not appropriate to assess a nonprofit based on such a simple analysis,” stated Scott Menzel, product manager of GuideStar. “Financial SCAN focuses on statistics and trends that have a far greater influence on a nonprofit's overall financial health and capacity to deliver excellent programs.”
Financial SCAN offers the most complete interpretation of financial fitness available, and it focuses on metrics and trends that are most meaningful when assessing an organization's financial strengths and weaknesses. The tool, originally introduced in 2012, is the new industry standard for interpreting financial data, building the financial management capacity of nonprofits, and helping grantmakers engage with their grantees about financial health and funding needs.
“Financial SCAN subscribers are using the reports as a starting point for more productive conversations about how to improve the strength and stability of organizations for the ultimate benefit of the missions they serve,” said Rebecca Thomas, vice president of Nonprofit Finance Fund. “When we understand how money connects to mission results, we unlock new opportunities to make the most of resources and improve social outcomes.”
For additional information about Financial SCAN, including a video overview of the service and pricing information, please visit www.guidestar.org/financialscan.
Tricia McKenna for Nonprofit Finance Fund Lindsay Nichols for GuideStar
About Nonprofit Finance Fund
Nonprofit Finance Fund (NFF) unlocks the potential of mission-driven organizations through tailored investments, strategic advice and transformative ideas. Founded in 1980, NFF helps organizations connect money to mission effectively, and supports innovations such as growth capital campaigns, cross-sector economic recovery initiatives and impact investing. A leading community development financial institution with over $80 million in assets, NFF has provided ~$270 million in loans and access to additional financing via grants, tax credits and capital in support of over $1.4 billion in projects for thousands of organizations nationwide. NFF is headquartered in New York City and serves clients from five offices across the country.
GuideStar, www.guidestar.org, connects people and organizations with information on the programs, finances, and impact of more than 1.8 million IRS-recognized nonprofits. GuideStar serves a wide audience inside and outside the nonprofit sector, including individual donors, nonprofit leaders, grantmakers, government officials, academic researchers, and the media.