Non Profit Audited Financials

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Non Profit Audited Financials

Postby hlfo718 » Fri May 03, 2013 10:10 am

Any idea how I can find audited financials from a non profit org? Are they required to file any federal and or statement tax return and financial statements?

Also, is there a way to see how much the executives are making?

Thank you
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Re: Non Profit Audited Financials

Postby campy2010 » Fri May 03, 2013 10:29 am

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Re: Non Profit Audited Financials

Postby Rager1 » Fri May 03, 2013 10:33 am

hlfo718 wrote:Any idea how I can find audited financials from a non profit org? Are they required to file any federal and or statement tax return and financial statements?

Also, is there a way to see how much the executives are making?

Thank you


Try this: http://www.guidestar.org/

Form 990 contains financial information including compensation.

Ed

p.s. Looks like campy2010 beat me to it.
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Re: Non Profit Audited Financials

Postby billern » Fri May 03, 2013 10:38 am

Non-profits are not necessarily required to distribute their audited financial statements. They are required to provide other information included their tax returns. If you look at the information on the 990, there is a question about whether the non-profit was required to have audited financials (which would tell you if they had an audit). The 990 also has certain comp information for the board, management, and certain highly compensated people.
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Re: Non Profit Audited Financials

Postby hlfo718 » Fri May 03, 2013 11:49 am

Thank you everyone!

So I looked at 2011 990 filing for this non profit org and is it unusual for a non profit to have net assets of 600 million in investments and cash?

Also, can a non profit become for profit? If so who are the shareholders?

My wife works for this non profit and the last 4 years, her salary has gone up by about 4.5%, cumulative. Yet the CEO gets 7 figures and rides in with company paid limo. Now the rumor is the company is looking to become a for profit org. I just want to make sure the executives don't raid the company by giving themselves huge stock options before going for profit since the goal of the company was to help the poor.
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Re: Non Profit Audited Financials

Postby alinna » Fri May 03, 2013 7:47 pm

Typically nonprofits should have a minimum of 3 months operating expenses in cash/investments, so without knowing the organizational budget, can't answer whether it's unusual or not. Is part of that money in restricted assets that can only be used for certain situations or after a certain period of time?
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Re: Non Profit Audited Financials

Postby billern » Fri May 03, 2013 7:55 pm

hlfo718 wrote:Thank you everyone!

So I looked at 2011 990 filing for this non profit org and is it unusual for a non profit to have net assets of 600 million in investments and cash?

Also, can a non profit become for profit? If so who are the shareholders?

My wife works for this non profit and the last 4 years, her salary has gone up by about 4.5%, cumulative. Yet the CEO gets 7 figures and rides in with company paid limo. Now the rumor is the company is looking to become a for profit org. I just want to make sure the executives don't raid the company by giving themselves huge stock options before going for profit since the goal of the company was to help the poor.
There are a lot of restrictions for what a non-profit can do and how the assets can be used. Management may be spending the money inappropriately or illegally but the whole going public or stock options talk does not make any sense.
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Re: Non Profit Audited Financials

Postby dm200 » Fri May 03, 2013 8:33 pm

I think foundations are often classified as "non-profits", and would have a very large, invested asset base (such as the Gates Foundation or Ford Foundation. The nature of what they do, and how they do it, is based on a large asset base. Thy must, to maintain non-profit, distribute something like at least 5% of the assets each year, but assets may grow more than the 5% due to investment results and more donations. Perhaps this company is a type of "foundation".
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Re: Non Profit Audited Financials

Postby dm200 » Fri May 03, 2013 8:40 pm

hlfo718 wrote:My wife works for this non profit and the last 4 years, her salary has gone up by about 4.5%, cumulative. Yet the CEO gets 7 figures and rides in with company paid limo. Now the rumor is the company is looking to become a for profit org. I just want to make sure the executives don't raid the company by giving themselves huge stock options before going for profit since the goal of the company was to help the poor.


I hate to be a pessimist, but I suspect that there is little or nothing you or your wife can do to prevent it.

Let me also add that many religious organizations and religious-based entities also may have very significant assets and investments to fund, in a longer term way, their purposes. Institutions of higher learning often have large endowments. The CEOs and top management of almost all such large organizations (whether profit or non-profit) have significant compensation. Whether they "earn" or "deserve" it is a very good question, and there are arguments on both sides of the issue -- but not something we can go into here.
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Re: Non Profit Audited Financials

Postby WhyNotUs » Sat May 04, 2013 11:24 am

In many cases there are NPOs that probably should convert to FPO, if you read the recent Tim Mag article on health care, the author makes that case for many hospitals. The State of NY is more active than many on this issue so you may want to contact the appropriate agencies if this is real. With $600M it seems like health care or education?? If so, there are interested parties. If nothing else, shining a light on it could force directors to distribute less of the funds to executives and more to potential recipients. They might put much of the reserves in a new NPO and take their part private. Might be a win/win.
I own the next hot stock- VTSAX
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