Too often, grantmakers issue grants without adequately considering a nonprofit’s overall financial picture. How can a nonprofit’s financial situation be an indicator of its ability to meet project objectives and mission? Also, how can grantmakers use financial data to make more deliberate decisions about how grant dollars can help a nonprofit, rather than accidently harming nonprofits’ sustainability? Led by NFF’s David Greco and Jessica LaBarbera, this session will instruct grantmakers on how to review financial statements for nonprofits’ ability to meet project or mission objectives. Financials statements can and should be an essential guidepost for grantmaking decisions. The session will be interactive, and participants will be given a case study for analysis throughout the exercises.

• Reviewing financials in context of an uncertain economy
• Understanding how to assess grantees’ financial health, including balance sheets and identifying full enterprise costs 
• Ability to ask questions of grantees that illuminate financial management challenges 
• Perceiving your support as either “building” or “buying” 
• Identifying ways to support nonprofits’ long-term sustainability and effective impact 

Although not required, it is strongly suggested that registrants have completed the Fundamentals of Effective Grantmaking “Understanding Financial Statements” session and attended Day 1 of the 2011 Annual Conference on Supporting Nonprofits’ Financial Health.