Financial management of nonprofits

Essay topic and questions 

Resources about the NYC Opera

• A Ransacked Endowment at New York City Opera.pdf download
• New York City Opera Announces It Will Close.pdf download

This case raises many issues about nonprofit finances. Questions to address: You must use at least one peer reviewed journal article

1. What is an endowment and why is an endowment important to the financial health of a nonprofit?  What is the difference between an endowment and "net revenues" accumulated and invested? Should a nonprofit be permitted to spend an endowment? (under what circumstances?)  

2. What was the board's role in the financial health of this organization?  Why do board members, typically business people, allow "unbusiness-like" activity to continue?

3. What other options might the board have considered to ward off bankruptcy and closure?

4. When donors give money to an organization, it may be undesignated or designated.  How can donors protect their gifts and ensure that their donations are used as they direct them?  

5. The article states at the end, "Mr. Siegel said he saw the collapse of City Opera 'as a warning for the rest of the country’s cultural institutions.' He added, 'If it can happen to New York City Opera, it can happen anywhere.' ” How should nonprofits respond to this warning?

Instructions 

The paper must be formatted as follows:

1. A cover page with the topic, date and student name.
2. An introductory paragraph that clearly states the topic of the case study, a brief summary of the case and the issues presented.
3. Respond to each question posed.
4. Attach a reference list using APA format. Reference list and cover page do not count toward the 5-page minimum. For APA guidelines, got to Purdue Owl (Links to an external site.) online for free guidelines.

Any paper that does not meet these specifications will have points deducted from the grade. 

Please use 12 pt. font, 2.0 (double) spaced, with 1" margins all around and number pages.

Please refer to the grading rubric (where the submission is due) to see how the paper will be graded.

see attachment