Consider the different financial analysis tools that nonprofits can use to evaluate their financial health.

1. What are some performance indicators that you can use for a nonprofit?

2. What three key ratios would you use to look at those performance indicators? For each ratio, provide the formulas and explain what the ratio tells you about the performance of the nonprofit. Explain why you think those three are the most important for the organization?

3. Based on the results, what key decisions (e.g., cost cutting, donor campaigns) can be made?