Evolution in the Management of Non-Profit Business: an Analysis Proposal with Financial Indicators

Abstract

The growth in the number of non-profit institutions makes it essential to analyze their current situation, the concepts that should be analyzed, the expected growth and areas of interest, and the concepts on which work is planned in the future. In recent years, public management has undergone changes, in social policies, and in structural aspects of society, given that the scope of its social objectives has increased (Sanz Lobo, 2018). Non-profit companies have had a greater boom in recent times. Their contribution to society has allowed them to improve their operations, however, the majority do not have a reliable source of financial information to make decisions. The research problem identified is the need to increase the financial resources of non-profit entities to be able to fulfill their corporate purpose. Therefore, the objective of this research is to present an analysis proposal with financial indicators for non-profit companies due to the significant changes in the management of companies in the centennial era. The methodology used was quantitative because numbers were used to confirm the objectives. The results show that entities can apply financial ratios: solvency, liquidity, operational and profitability; which allows us to have reliable indicators for decision making. In conclusion, you can take financial tools adapted for non-profit entities, which will allow you to have solid bases for decision-making.