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5 red flags often overlooked in not-for-profits

May 13, 2021 · 3 min read

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Certain financial benchmarks, such as recurring losses or declining net assets, are fairly easy to identify as red flags for a not-for-profit entity (NFP). Others may be less obvious as red flags. This article discusses the latter so that NFPs and their auditors can stay alert to indicators that may signal declining health in finance, operations, or governance.

  1. Current ratio: Most accountants learn to calculate the current ratio during their education, but this indicator's usefulness in practice can sometimes be

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