Financial analysis techniques application to foundations in the third sector: Alarko Education and Culture Foundation case

In the past two decades, third sector organizations especially in the western world captured a great attention. Their important role in economy, highly increasing expenses for social missions and high growing rates, made third sector an interest area specifically for sciences of management, economy and finance. The reason for nonprofit financial analysis is to determine how well an organization is fulfilling its mission. The financial numbers alone cannot answer this question, but they can provide insight into the sources of funding, the cost of programs and service delivery, and an organization?s ability to operate in the future. To survive is the most important wish when a foundation declared. Surviving foundation is the responsibility of board members and Directorate General of Foundations? auditors both who must care the financial condition. Hence, Alarko Foundation is analyzed by common financial techniques and financial ratios for nonprofit organizations. This study is the first in financial analyzing of education and culture foundations in Turkey.