Purpose: The purpose of this project is to analyze a large set of financial data for the not-for-profit sector. The data comprises the Form 990s filed with the IRS. The link to the raw data file is:

https://www.irs.gov/statistics/soi-tax-stats-annual-extract-of-tax-exempt-organization-financial-data

Obtain the most recent dataset year via the link above. This exercise is based on the "form 990 extract" file. You will also need to obtain the "Extraction Documentation" which provides a basic description of the variables in the dataset. Please note that it may take a few minutes to download the dataset.

Part 2:

Part 2 of the project assesses the overall financial condition of the not-for-profit sector. Obtain the 2019 dataset via the following link

https://www.irs.gov/statistics/soi-tax-stats-annual-extract-of-tax-exempt-organization-financial-data

The data compromises the 2019 form 990s filed with the IRS.

REQUIRED:

1. What is the total revenues and total expenses of the not-for-profit sector?

2. Calculate the following performance indicators for the not-for-profit sector as a whole (round "months" to the nearest whole number. Round "(revenue-expense)/expenses" to 1 decimal place and other answers to the nearest whole percentage)

(Revenues-Expenses)/expenses _______%

Unrestricted net assets/average monthly operating expense _________months

Debt/net assets ________%

Debt/assets _________%

3. Based on the performance indicators you calculated, overall, how would you assess the financial condition of the not-for-profit sector?

4a. Calculate the performance indicators from item (2) for 501(c)(3) organization and non 501(c)(3) organizations. (Round "months" to the nearest whole number. Round "(revenues-expenses)/expenses" to 1 decimal place and other answers to the nearest whole percentage)

501(c)(3) organizations:

(Revenues-Expenses)/expenses _________%

Unrestricted net assets/average monthly operating expense __________months

Debt/net assets _______%

Debt/assets _________%

Non 501(c)(3) organizations:

(Revenues-Expenses)/expenses _________%

Unrestricted net assets/average monthly operating expense __________months

Debt/net assets _______%

Debt/assets _________%

4b. How does the financial condition of 501(c)(3) organizations compare with non 501(c)(3) organizations?

5a. Calculate the performance indicators from item (2) for smaller organizations (under 1 million in total revenue) and larger organizations (1 million or more in total revenue). (Negative amounts should be indicated by a minus sign. Round months to the nearest whole number and other answers to the nearest whole percentage)

Small organizations (N=206,484):

(Revenues-Expenses)/expenses _________%

Unrestricted net assets/average monthly operating expense __________months

Debt/net assets _______%

Debt/assets _________%

Large Organizations (N=97,957)

(Revenues-Expenses)/expenses _________%

Unrestricted net assets/average monthly operating expense __________months

Debt/net assets _______%

Debt/assets _________%

5b. How does the financial condition of smaller organization (under 1 million in total revenue) compare with larger organizations?