Citation URL: http://www.urban.org/KennardWing

This brief highlights trends from the seventh edition of "The Nonprofit Almanac 2008", prepared by the National Center for Charitable Statistics at the Urban Institute. The Almanac is the latest in the Urban Institute's series of statistical profiles of the nonprofit sector and focuses primarily on 501(c)(3) public charities. We also highlight key findings on private charitable contributions and volunteering, two vital components of the nonprofit sector. This brief includes the most recent available data (2005 and 2006).

America's nonprofit sector continues to grow faster than its business sector or its government. The Nonprofit Almanac 2008 presents data on nonprofits' place in the national economy and trends in wages, employment, private giving, volunteering and finances. The tables and graphics will give scholars, practitioners, and policymakers the data they need at a glance, while the textual analysis will help them plan for the future.

Lessons for Boards from the Nonprofit Overhead Cost Project summarizes research findings for board members of nonprofit organizations. Widespread problems with financial reporting and controls suggest that board members should look closely at both as part of fulfilling their fiduciary responsibilities, lest weak organizational infrastructure limit mission effectiveness. The overhead cost project is a collaboration with the Center on Philanthropy at Indiana University.

Special Issues in Nonprofit Financial Reporting: A Guide for Financial Professionals documents significant problems in the reporting of expenses by functional classification in both audited financial statements and Forms 990. The guide encourages greater focus on this area by public accountants. The guide documents special problems raised by accounting for capital and in-kind gifts and offers solutions that are in conformance with generally accepted accounting principles. The information in this guide is based on research findings from the Nonprofit Overhead Cost Project, a major national study conducted in collaboration with the Center on Philanthropy at Indiana University.

Donating to Charity, based on findings from the nonprofit overhead cost project, encourages individuals to consider their own values and check into the operations of various charities before making charitable contributions. Unlike many guides that emphasize quick-fix financial ratios when determining the donation-worthiness of charities, Donating to Charity indicates that these ratios are frequently problematic and are therefore not useful in making giving decisions. The overhead cost project is a collaboration with the Center on Philanthropy at Indiana University.

This brief is the first of two that summarize results from detailed case studies of the financial management of nine nonprofit organizations. It focuses on the relationship between spending on administration and fundraising and the effectiveness of nonprofit organizations in carrying out their missions. Smaller organizations tended to invest less in organizational infrastructure, resulting in conditions that compromised their effectiveness. Part of the reason why these organizations invested less in infrastructure involved their reliance on grants with limits on how much could be spent on overhead costs. The overhead cost project is a collaboration with the Center on Philanthropy at Indiana University.

This brief is the second of two briefs that summarize results from detailed case studies of the financial management of nine nonprofit organizations. It focuses on public financial reporting and addresses issues such as weak methods for allocating staff salary costs to program, administrative, and fundraising expenses; the need for greater sophistication in accounting for capital gifts and in-kind donations; and the effects of unique IRS reporting rules on overhead and fundraising cost ratios. This brief concludes that simplistic efforts to assess and compare public charities based on their public financial reports may lead to flawed conclusions. The overhead cost project is a collaboration with the Center on Philanthropy at Indiana University.

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