How Helpful Are Charity Watchdog Ratings?

Abstract

Over 25 percent of adults volunteered for a non-profit organization (NPO) in 2014 with private giving by individuals and corporations of over $390.05 billion (Giving USA, 2016). Sarbanes-Oxley compliance requires more financial oversight of donations contributed by corporations to NPOs than ever before. This creates a demand for finance and accounting graduates to understand NPOs unique financial and operational challenges. Consequently, students should be exposed to NPO financial statements and analysis. This case exposes students to basic financial and operational challenges encountered by NPOs using the financial data of World Vision and Compassion International.