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Nonprofit organization financial performance measurement: An evaluation of new and existing financial performance measures
Author(s) -
Ritchie William J.,
Kolodinsky Robert W.
Publication year - 2003
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.5
Subject(s) - performance measurement , revenue , business , empirical research , accounting , finance , internal revenue , foundation (evidence) , financial ratio , fiscal year , service (business) , marketing , political science , philosophy , epistemology , law
Consensus about financial performance measurement remains elusive for nonprofit organization (NPO)researchers and practitioners alike, due in part to an overall lack of empirical tests of existing and newmeasures. The purpose of the current study was to explore potential similarities of financial performance measuresderived from two sources: current NPO research and key informant interviews with NPO foundation constituencies. Theauthors examined financial performance measurement ratios with data from fifteen Internal Revenue Service(IRS) Form 990 line items. Using factor analytic techniques, they found three performance factors, eachwith two associated financial measurement ratios, to be present. They categorized the performance factors asfundraising efficiency, public support, and fiscal performance. This article discusses implications of the findingsand future research.