Thursday, 17 May 2012

Notes on Non For Profits (NFP)

When I was in the SLP program we were thrown a Non For Profit (NFP) practice case and it threw everyone off. We all thought 'Non for profit - I guess that means that its not about financial performance but rather about the qualitative aspects instead' - we thought wrong. We had a discussion with out moderators about doing a case on NFP vs a regular for profit (FP) company and it turns out that we should be approaching both in the same way essentially.

Should you calculate NPV, pro-forma, ratios, etc.? Yes!

Why? -- Because any company, whether for profit or not, needs money in order to continue operations. A non for profit will not be much use to the community if it has no funds to operate and has to close its doors. Also, a NFP needs money not only to maintain operations but also to expand and do more projects. That is why financials for a NFP are very important. Hence, you will still need to do a financial analysis and calculate NPV, pro-forma, etc. for a NFP company.

Just like with FP companies, you will look at both quantitative as well as qualitative aspect to decide on which alternative should be pursued. One thing to remember is that part of a FP company's mandate is to maximize/increase profitability, however a NFP company would not likely have this as the mandate, however they still need to be profitable to keep operating and to expand.

Tuesday, 8 May 2012

Good Luck and a Note on SLP Year 2 & The Board Report

With the exam coming up tomorrow I wanted to wish everyone Good Luck! I hope that sharing what I learned through my experience will help you pass the exam. Don't stress, just take a deep breath and do your best (and get plenty of sleep tonight!)

Good Luck to all the readers of this Blog!

A quick note on SLP Year 2 and the Board Report:

I will be expanding this blog to include posts relating to year 2 of the SLP, the Board Report and the Presentation. I will share my personal experience and will include posts on what I learned through this experience.
There will also be a section in the forum (already created) for discussing approaches/format/strategy/etc. for writing and presenting the board report as well as the group cases. (you should not discuss actual case details).

Bookmark or follow this blog so that you remember to check out the information for year 2 of the SLP once it is up.

Thank you and Good Luck!


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