CTData Collaborative
Nonprofit Platform

Financial Analysis

Introduction and a Strong Caveat

We are happy to provide you with data from Connecticut nonprofits annual financial reporting statement (Form 990s) to the Internal Revenue Service. But please note that this information and corresponding ratio tools provided represent data at only one point in time. Although 990 statement data ratio analysis can be a useful tool, the information can be dated and in turbulent economic times it is important to consider current financial statements for an accurate picture.

Also, as in for-profit businesses, ratios showing financial health in one sub-sector of the nonprofit world (such as the arts) should be compared with caution to ratios in another (such as hospitals) since their operations and corresponding financial profiles are inherently different.

In addition, please note that not all nonprofits are required to provide annual financial reports to the IRS. Religious congregations and organizations controlled by a congregation or diocese are not required to register with the IRS or file a Form 990, while nonprofits with less than $50,000 in gross receipts for 2010 (and less than $25,000 in prior years) file the 990-N 'e-Postcard' with the IRS, which includes no financial information. Organizations with more than $50,000 but less than $200,000 in gross receipts in 2010 may opt to file the shorter Form 990-EZ; most of the key ratios cannot be calculated for these organizations since the Form 990-EZ lacks many of the necessary underlying numbers. (Note that the Form 990-EZ threshold has varied from year to year as the IRS phased in the revised Form 990. See http://www.irs.gov/charities/article/0,,id=184445,00.html for details.)

Lastly, although useful and informative as indicators, ratios are only one type of measure of the financial health and operations of a nonprofit. Financial ratios also cannot tell you the full story of the positive impact that a nonprofit's programs are making in your community.

Getting Started

Tutorials (coming soon!): If you are new to financial analysis and the use of financial ratios, click on this link to learn more.

Finding Individual Organizations: Use the Organization Search page to learn more about the Form 990 reported finances of an individual organization or compare its finances to similar organizations.

Financial Analyzer Report Styler: Use this tool to tailor your search and presentation Form 990 reported finances of Connecticut nonprofit organizations. Click here