“
“An investment in knowledge pays the best interest.” – Benjamin Franklin
your FREE charity financial benchmarking tool
type your charity/NFP in the form below to generate an online interactive report (please be patient it will take time to load the data).
you must become a FREE subscriber to generate your own benchmarking report.
new subscribers register here:
existing subscribers login here:
nonprofit financial benchmarking
compare your organisation against charity sector benchmarks to improve your financial performance and unlock your potential
compare your charity or nonprofit organisation against charity sector metrics to assess your financial health and performance. the dataset draws on Australian Charities and Not-for-Profits Commission (ACNC) records submitted over the last decade and is now exclusively available for you to inform your financial plans and decisions.
tailored charity financial health check
the free nonprofit benchmarking tool is a general indicator of your organisation’s financial health and performance against charity sector averages. the report can help identify warning signs such as:
- over-reliance on limited income sources
- carrying too much debt
- struggling to meet short term liabilities
- not using its assets effectively
- an inadequate cash reserve
- not realising fundraising potential
what next?
the nonprofit benchmarking tool may indicate that you need to:
- take urgent action to stabilise your nonprofit’s finances
- assess the financial sustainability of your programs in terms of mission alignment, cost, impact and overhead recovery
- develop a financing plan to attract more money for your mission
charities checker
the free charity benchmarking tool is also a useful resource for donors and funders looking to inform themselves about the general financial heath of potential funding recipients. you should use other resources to inform your assessment and read the disclaimer below.
Disclaimer
The data, charts, and any other financial information provided by the free online charity financial health check are for general informational purposes only and should not be considered as financial advice, or as a basis for making any financial decisions. The website is regularly updated, using ACNC data, however we cannot guarantee the accuracy, completeness, or reliability of the content
financial metrics for charities::
- revenue trend – indicates whether income is growing or declining over time. A trend of decline may indicate that the organisation needs to review its financing mode and strategy.
- surplus/(deficit) trend – ongoing deficits will drawdown cash reserves and risk long term viability. A trend of deficits could indicate problems with revenue growth, cash flow and/or the cost structure.
- % government reliance – a high ratio could indicate funding risk due to policy change.
- debt/equity ratio – this ratio measures the correlation between borrowed funds and net assets. A charity with a lot of debt (>2.5) may struggle to continue operating
- current ratio – measures the ability to pay short-term liabilities. Charities should try to keep their current ratios above 1.0
- asset turnover – measures revenue generated from assets. It shows how hard the assets are working to generate income.
- viability ratio – compares net assets to long term debt. It is a basic indicator of financial strength
- savings ratio – indicates whether surpluses are being spent, or used to add to reserves
- operating reserve ratio – indicates how many months an entity can continue its operations without any revenue coming in
- interest cover – measures the ability of a company to pay the interest on its outstanding debt.
why benchmark your charity’s financial performance?
- strategic decision-making:
gain clarity on your financial strengths and areas for improvement. benchmarking allows you to make informed decisions, aligned to industry best practices. - enhanced accountability:
benchmarking provides a comprehensive view of your financial stewardship, reinforcing stakeholder trust and credibility. - identify opportunities for growth:
uncover untapped potential and growth opportunities. benchmarking highlights areas where your charity can optimise resources and explore new avenues for sustainable impact. - stay resilient in a changing environment:
navigate economic uncertainties with confidence. benchmarking equips you with the insights needed to fortify your financial resilience and adapt to changing circumstances. - proactive risk management:
anticipate and mitigate risks before they escalate. benchmark against sector standards to identify warning signs early and implement preventive measures. - due diligence: by analysing key ratios, such as liquidity, solvency, and profitability, board members can gauge the organisation’s ability to meet short-term obligations, manage long-term debt, and generate surplus funds for future initiatives.
how It works:
our benchmarking service utilises robust analyses of ACNC data sets and uses trends and ratios to provide a comprehensive assessment of your financial performance. understand where you stand in comparison to peers, allowing you to fine-tune strategies for enduring success.
take the next step to elevate your impact
better charity can deliver a customised, comprehensive benchmarking report comparing your charity against your peers using a range of industry variables (income, staff, sector etc). our charity financial performance benchmarking service is your strategic ally, ensuring your financial decisions align with your mission.
explore the possibilities with our benchmarking services today.
