Details

Case

Educator Copy

The Citizen Foundation (TCF)

Muhammad Junaid Ashraf


INDUSTRY : Non-Profit Organization

AREA : Finance

ORGANIZATION : The Citizen Foundation (TCF)

LENGTH : 15

LUMS No : 02-624-2007-1

PUBLICATION YEAR : 2007

DESCRIPTION

KEYWORDS:

TCF,The Citizens Foundation,Lahore,Financial Statements,Non-Profit Organization,NPO,Financial Analysis,Objecctives,Training,Manager


DESCRIPTION:

Riaz, an MBA student of a private university in Lahore was looking at the financial statements of The Citizen Foundation (TCF). TCF was a non-profit organization involved in providing educational services for the poor people of Pakistan. Riaz had to turn in an assignment the next day in his course in accounting that involved financial statement analysis of TCF. The objective of the case is to give students the opportunity to analyze the financial statements of a non-profit organization. In the process, students will understand the difference between the analysis of financial statements of a for-profit and for a non-profit organization. The objective is also to familiarize students with a framework that will help them to do a comprehensive financial analysis of a non-profit organization. It is assumed that students are already aware of different ratios and how to calculate these. This case is suitable for a first year MBA course on Financial Reporting and Analysis. It can also be used for a non-profit executive training course. It is advisable that prior to this case, a session should be spent with participants of the executive course on introduction to ratios and how to calculate them. My experience of training non-profit managers is that they are somewhat skeptical in accepting the utility of financial tools used in the commercial sector for the non-profit sector. A session on basics of ratio analysis followed by this case and accompanied reading will help them with analyzing financial statements of nonprofits. 


LEARNING OBJECTIVES:

The objective of the case is to give students the opportunity to analyze the financial statements of a nonprofit organization. In the process, students will understand the difference between the analysis of financial statements of a for-profit and nonprofit organization. The objective is also to familiarize the students with a framework that will help them to do a comprehensive financial analysis of a nonprofit organiztion. It is assumed that students are already aware of different ratios and how to calculate these.


SUBJECTS COVERED:

Finance