Many Managers of Nonprofit Finances Suffer Knowledge Gaps, Study Finds

Top officials at midsize nonprofits lack basic financial knowledge, according to a new study.

The study, conducted by the Center on Philanthropy at Indiana University, also found that midsize organizations are lifting their focus from just breaking even to long-term planning.

The study surveyed more than 500 nonprofit officials who manage the finances of their organizations, which had revenues of $1-million to $5-million. Three quarters of the managers said they consider themselves financially knowledgeable, but just 36 percent correctly answered three questions they were given to assess their basic financial skills.