Lumina Foundation Financial Standing and Management Educational nonprofits in the United States exist in a space in which they may generate enormous change in the current culture. Educational nonprofits come in as the second most populous type of nonprofit in the United States, behind only religious organizations. Even with such prevalence, only a bit more than half of the nearly 212,000 educational nonprofit organizations operate in the financial space where the IRS Form 990 is required. (Internal Revenue Service, 2016)
Education nonprofits hold a somewhat oversized position in the United States. Due to the compulsory nature of primary and secondary education, and the attention given to postsecondary training and education over the last …show more content…
Education often becomes a hot button issues in U.S. politics, such as the wave of maneuvering around No Child Left Behind, or the populist threats that arose with the start of the Common Core recommendations. This high susceptibility to shifting public moods and the ease with which education becomes a whipping boy for political points can leave nonprofits of this section highly vulnerable. This remains true not only for those nonprofits receiving most of their funding from government grants and contracts, but privately funded nonprofits may run afoul of swiftly shifting laws generated in response to swiftly shifting political winds. The case of inBloom, a company designed to assist education through secure collection and highly secure storage of educational records, provides a prime case of research and proven science running head first into populism and losing. (Horn, …show more content…
However, some caution is called for when using ratios as a method of analysis. These ratings provide potential early warning signals, or assist in the formulation of trends in the organization’s earnings and spending, but cannot on their own make judgments on the usefulness of specific practices or strategies. (Gaspar, et al., 2014) Current Ratio. This initial examination simply compares the current assets of the organization against its current liabilities. At least one dollar of assets per one dollar of liabilities is acceptable in many cases, with a higher ratio of assets to liabilities being preferable. The Lumina Foundation maintains a current ratio of $34.20 of assets for every $1 of liabilities. This ratio declined since 2014, when it stood at $39.84 to
Education nonprofits hold a somewhat oversized position in the United States. Due to the compulsory nature of primary and secondary education, and the attention given to postsecondary training and education over the last …show more content…
Education often becomes a hot button issues in U.S. politics, such as the wave of maneuvering around No Child Left Behind, or the populist threats that arose with the start of the Common Core recommendations. This high susceptibility to shifting public moods and the ease with which education becomes a whipping boy for political points can leave nonprofits of this section highly vulnerable. This remains true not only for those nonprofits receiving most of their funding from government grants and contracts, but privately funded nonprofits may run afoul of swiftly shifting laws generated in response to swiftly shifting political winds. The case of inBloom, a company designed to assist education through secure collection and highly secure storage of educational records, provides a prime case of research and proven science running head first into populism and losing. (Horn, …show more content…
However, some caution is called for when using ratios as a method of analysis. These ratings provide potential early warning signals, or assist in the formulation of trends in the organization’s earnings and spending, but cannot on their own make judgments on the usefulness of specific practices or strategies. (Gaspar, et al., 2014) Current Ratio. This initial examination simply compares the current assets of the organization against its current liabilities. At least one dollar of assets per one dollar of liabilities is acceptable in many cases, with a higher ratio of assets to liabilities being preferable. The Lumina Foundation maintains a current ratio of $34.20 of assets for every $1 of liabilities. This ratio declined since 2014, when it stood at $39.84 to