Dashboards: How to create and implement one 

relevant to your nonprofitWashington County Nonprofit Network

December 7, 2016

Agenda• Finance Committee and Board of Directors reporting• Pitfalls of Dashboards• Benefits of benchmarking & dashboards• Metrics & key ratios for nonprofits• Tips for a good dashboard• How to assess your nonprofit• Working with MJ’s dashboard tool

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Board Reporting Recommendations

• Finance Committee• Detailed Balance Sheet• Detailed Income Statement• Budget to Actual• Cash Flow Projection or Forecast

• Dashboard (financial and programmatic)

• Board of Directors• Summarized Balance Sheet• Summarized Budget to Actual Income Statement

• Dashboard (financial and/ programmatic)

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Board Reporting Recommendations

• Management• Detailed Balance Sheet• Detailed Income Statement• Budget to Actual• Cash Flow Projection or Forecast

• Dashboard (financial and programmatic)

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Dashboards• High level concise graphical presentation

• Key Performance Indicators (KPI; metrics that impact the business)

• Used to track key ratios• Track trends over time• Include program, development and financial

• Attributes of KPI’s• Measurable and available• Impact the organization• Relevant • Timely

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Keys to a good dashboard• Align with organizational success• Communicate timely analytics• Snapshot of current status and trends over time• Simple to read and uses “white space”• Graphical with easy labels; communicate numerical data easily• Legible font size• Stop light coloring or smiley faces/frown faces 

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Pitfalls of Dashboards

• Too many details• Tracking wrong benchmarks• Focus on numerical data only• Crowded and distracting• Charts and labels marked separately

• Font too small• Too many colors

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Selecting ideal KPI’s

• Program or business driver• Reflect progress toward intended goals• Guides decisions• Assessed periodically to determine right fit

• *Handout* Compass Point Library of Sample Dashboard Indicators

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How to get started

• Discuss metrics/KPI’s with group to use the dashboard• Evaluate KPI’s and determine range of desired outcomes• Draft a pilot dashboard for several months and evaluate• Create final version• Evaluate periodically

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Key Ratios ‐ FinancialDays Cash on Hand• How long can current cash cover daily expenses with no additional inflows 

• Cash / (annual expenses ‐ noncash expenses / 365)

Current Ratio• Are current assets sufficient to cover current liabilities?• Current assets / current liabilities

Net Asset Reserves• How many months of reserves do you have?• (Total unrestricted net assets – net assets of PPE – perm restricted) / (Total expenses/12)

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Key Ratios ‐ FinancialRevenue Allocation• What are your sources of revenue?• Revenue type / total revenues

Program Expenditures• What % of annual expenses go toward programs?• Program expense / total expenses

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Key Ratios ‐ ProgramProgram effectiveness• How many clients are you serving?• Total clients served compared to budget/goals

Program effectiveness• What is the satisfaction of clients?

Program efficiency• Are staff maintaining 100% of workloads?

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Key Ratios ‐ DevelopmentFundraising efficiency• How much does it cost to raise a dollar?• Contributions / total fundraising expenses

Fund development• Are we bringing on new major donors?• Are we retaining major donors?

Grant request win rate• Are we able to secure funding from written grant requests?

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Nonprofit BenchmarksFunctional Expense Ratios – National Averages ‐ Charity Navigator 2016) approx: • Program = 81.5%• Management = 9.3%

Functional Expense Ratios – (Portland Metro for all nonprofit types – Charity Navigator 2016): • Program = 81.4%• Management = 8.8%

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MJ Dashboard Sample Tool• Easy to use input boxes

• Dashboard automatically updates graphs

• Stop light color coding

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Program Development*shouldbemonthly (Annual) March2015March2015 YTD %YTD Budget TopDonations:

Individuals 948Childrenserved 325 1,106 29% 6,874 Corporations 10,000

Foundations 15,000Paintused 9,000 6,000 150% 12,000

AverageDonation 35$Voluteerhours 3,000 6,000 50% 12,000 #NewDonors 4

Grantsuccessratio 53%

FinancialRevenue Expenses

March2015 YTD Budget ExpensesbyProgram March2015 Current% Goal%TotalCashIncome 576,426 826,426 849,224 ColorforKids 345,320 41% 44%TotalCashExpenses 273,927 513,927 296,250 Healingartprogram 241,680 28% 30%NetChange 302,499 312,499 552,974 Educationprogram 100,349 12% 8%

TotalProgram 687,349 81% 82%Management 62,889 7% 8%

Assets Fundraising 100,993 12% 10%TotalExpenses 851,231 100% 100%

In‐KindGifts March2015 YTD

Supplies 42,105 115,927Facilities 5,000 15,000Marketing 2,304 6,384Other 40,700 40,700

90,109 178,011

Arts4More March2015

Donor

JohnDoe

FinanceCommitteeDashboardOfftrack‐discussionneeded

Ontrack

Caution‐discussionsuggested

TargetOhMy!Foundation

‐

20,000

40,000

60,000

80,000

100,000

120,000

Actual

Budget

521,537

64,745

285,430

80,741

CurrentMonth

534,297

80,500

78,419

102,581

PreviousMonth

Cash

Receivables

Inventory

Other

‐50,000100,000150,000200,000250,000300,000350,000400,000

Actual

Budget

Nonprofit Dashboards‐ Your Org• What ratios are relevant? 

• Questions to consider:• How do we know if we are fulfilling our mission?• How do we track our fundraising efforts? • How do we know our revenues are on track? • How do we know our expenses are on track?

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Proposed Reporting Changes – Phase I Liquidity

• Disclosures on managing liquid resources available to meet cash needs for expenses within one year

• Disclosures quantifying amount of assets available for expenditure within one year

• Final illustrations and examples to be included in future ASU

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Proposed Reporting Changes – Phase I Operating Measure

• Enhancement to reporting requirements when non‐profits choose to present measures

• Requirement of reporting internal board designations and appropriations on the face of the financial statements

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Proposed Reporting Changes – Phase II

• Expenses – discussion of disclosure over functional basis (program, management, fundraising)

• Operating measures – require measures, defining measures

• Cash flows – realignment of certain items

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Questions

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Contact Information 

Gerard DeBlois503‐227‐0581gerard@mcdonaldjacobs.com

Jessica Yoder503‐227‐0581jessica@mcdonaldjacobs.com

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