NFP organisations

VFM

objective for NFPO

Economy-buy goods at min. $, Efficiency-use these goods to maximise O,
Effectiveness-use these goods to achieve obj.s

Another way to look at it is: Inputs-Economy Process-Efficiency Outputs-Effectiveness

O driven- maintaining std.s even when O changes, eg. prison service

Input driven- try to get as much out with limited inputs, eg. library

Obj. is not SH wealth max.

Stewardship more imp.

Lack fin. flexebility

they don't know where next bit of money is coming from

cash mgt. and budgeting become more imp.

Market capitalisation

=equity market value

=no. of issued shares*share price

fin. obj.s

VFM

ratios

roce

target income level/employee

target current :

service related Os are difficult to meas. quantitatively so NFPO focus on perf. meas. related to I, eg. min. I $ for a sp. O level

max. net cash income

keep spending within budget

all these fin. obj.s can also be used by a listed for P co.

when Q says compare and contrast fin. obj.s of NFPO and listed co., mention the points in orange and pink

Ways to meas. non-fin. obj.s

KPIs

perf. and development of staff and volunteers (HR)

reporting on external trends, including social, economic and environmental impacts

Other creative forms of non-financial reporting include statistics on website use, analysis of media coverage, measuring board visibility and recognition.

+ve CF is a NFP obj.