Gaps in financial knowledge exist among professionals at midsize nonprofits, with serious implications for those organizations and the donors who place their trust in them, according to a new study by the Center on Philanthropy at Indiana University.
"Seventy-six percent of financial managers at midsize nonprofits said they are knowledgeable about financial principles, but only a third correctly answered all three basic financial literacy questions asked," Una Osili, director of research at the Center on Philanthropy, said in a statement. "Solid financial knowledge is critical to sound decision making as nonprofits strive for financial well-being and greater impact."
The study, which was sponsored by Moody's Foundation and released Wednesday, surveyed some 500 nonprofit professionals who are most responsible for their organizations' overall financial management.
The random sample comprised mainly human services nonprofits and those focused on health, civic matters, environment, arts and education with revenues of $1 million to $5 million. Hospitals and higher education institutions were not part of the sample.
