"Sales" of a non-profit
We are analyzing one existing firm’s economic contribution. Our firm is a small non-profit. Its revenues are predominantly from private donors, and it earns a small profit after subtracting the expenditures that are necessary to provide literacy, day-care, and mentoring services free-of-charge to the public. Can we please have some guidance as to how IMPLAN accomadates for this alternative business model? One of the data inputs for an Industry Change activity is “sales,” and we are wondering what should be entered into this area. We do have the revenue/expense accounting information of the firm available.
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IMPLAN SupportHi Kathy, We don't have a way in an Industry Change Event to truly capture the variances that might be best represented for your non-profit because of certain specialties of the Sector as you have suggested, e.g. non-profits have a different tax structure. Thus our recommendation would be to run this as an [url=http://implan.com/v4/index.php?option=com_multicategories&view=article&id=730:case-study-analysis-by-parts&Itemid=71]Analysis-by-Parts[/url]. To do this you will start by removing the budget for the various services you have described below, and then run the remaining non-labor budget through an imported spending pattern for Sector 401 (Activity Options>Import> Industry Spending Pattern select 401 from the list). You will then want to normalize the spending pattern (Events Options> Change All> Normalize Events)which will force the Events to sum to 1.00 in the Sum of Event Values at the bottom of the screen. You can then enter your budget dollars for the non-labor portion of the budget as Activity Level (Edit Activity button). Next you will enter the labor budget through a Labor Income Change Activity (if this function is not turned on for your software, you can turn it on via the File>User Preferences menu. Once you have opened the User Preferences window, you will want to choose the Analysis tab. On the Analysis tab you will select Advanced Modeling, if it is not already checked and then check the Enable Accounts Explorer check box. This will activate the Explore menu in both your Standard and Tasks bars, and the alternate Activity Types when you click the New Activity button in Setup Activities window. As the direction in the link above, section C show, you will then fill in the Direct with your budget, employment, profits, and tax payments. This same process can be used for examining the services you describe for Sectors 399 for the child day care portion and 400 and/or 401 for the other activities depending on how you feel literacy and mentoring services are best described in the Sectoring scheme (if you need help to determine this one way to do this is to look at the NAICS description included in each Sector. To do this you can open the Help>Sector Search and click on the column header "Industry Code" to sort the Sectors by IMPLAN code. You can then scroll down to the codes of interest (in this case 400 and 401) and see which NAICS descriptions are associated to both. This can help you to decide which Sector will best match your needs. Please let us know if you have any additional questions or need additional assistance with this methodology.0
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