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Financial Modeling For Non-Profits

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About Financial Modeling For Non-Profits

Financial modeling for non-profits is performed in the same way as with regular businesses. The only differences may be related to the way non-profits are financially managed and the fact that they are not necessary profit-driven, don’t pay dividendsDividendA dividend is the share of profits a shareholder receives, made on behalf of the corporation. When a company genearates a profit and accumulates retained earnings, those earnings can be either reinvested in the business or paid out to shareholders as a dividend. Types include: cash, common, preferred, stock, property, and may enjoy special tax breaksTax ShieldA Tax Shield is an allowable deduction from taxable income that results in a reduction of taxes owed. The value of these shields depends on the effective tax rate for the corporation or individual. Common expenses that are deductible include depreciation, amortization, mortgage payments and interest expense, which need to be taken into consideration.

Financial Modeling for Non-Profits

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In order to become a great financial analyst, below are some additional questions and answersKnowledgeCFI self-study guides are a great way to improve technical knowledge of finance, accounting, financial modeling, valuation, trading, economics, and other areas. These resources give you the technical skills you need to advance your career in investment banking, equity research, corporate development, and other areas of for you to explore further:

What is are the types of financial models?Types of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money
What is sensitivity analysis?What is Sensitivity Analysis?Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable
What is bookkeeping?AccountingOur Accounting guides and resources are designed as self-study guides to learn accounting and finance at your own pace. Browse hundreds of articles on important topics such as the income statement, balance sheet, cash flow statement, depreciation methods, how to link the 3 statements, debits & credits, journal entries
What are the most common valuation methods?Valuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance

Example Excel Model

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Financial Modeling For Non-Profits

About Financial Modeling For Non-Profits

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Example Excel Model

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