Essay on Reviewing The Financial Management Of Colon Cancer Alliance
Nonprofit organizations exist to provide various types of services and needs to the surrounding community and/or to the nation or world, as a whole. Unlike the for-profit counterparts, nonprofits do not exist to generate profit or have owner’s equity or stockholders (Accounting Coach, n.d.). Instead, nonprofits must rely on contribution, membership dues, program revenue, fundraising events/activities, public or private grants, or investment income to generate revenue to keep the organization running and financially functioning. Likewise, the revenues must be greater than the expenses to ensure that the organization remains in good financial health. Whereas, for-profit businesses measure their financial stability according to the amount or percentage of sale for their goods and services (Accounting Coach, n.d.). Since there are various types of nonprofit organizations, no one nonprofit entity looks alike when comparing financial health. However, several standards exist to provide a “template” of how nonprofits should gauge themselves and follow certain principles to maintain their existence and avoid financial failure or crises. Some methods may depend on the type of nonprofit being run. In this paper, the financial management principles of the Colon Cancer Alliance (CCA) organization will be discussed.
About the Colon Cancer Alliance The CCA was started by a group of 41 colorectal cancer…