Solved by verified expert :Using only the last two consecutive years of Tax returns for the American Red Cross found at www.redcross.org under about us/publications:respond to the following questions:1.What is the mission of the organization?2.Name the specific programs they provide.3.Do these programs meet their mission?4.What funding makes up their revenue?Using the two most recent consecutive years answer the following:1.Has there been an increase/decrease in net income, revenue, or expenses? Comment on this.2.What is the percentage of fundraising to total charges, management to total charges. (Example: fundraising is 45% of total.) Comment on this.3.What is the percentage of total salary to total charges, how is it broken down into program, management, and fundraising. Comment on this. (Remember, there may be two lines with salaries listed.)4.What are some common financial ratios that would pertain to the Red Cross? What are the results of those ratio’s for the two consecutive years you are reviewing? What impact do the results have on the organization?5.Does the organization look like they will remain viable? Why?6.Based solely on their 990 report, would you donate to this organization? Support your answer.7.Mention one area or item on the 990 you find unusual, interesting, or would like to have further information. Support your answer.Your comments should be well thought out and professional – as if you are relaying this information to members of an organization who do not have financial information. For example, for question #4, I do not expect to see a response such as “the current ratio is 2:1 and that is good”.
Expert answer:ACC – Tax returns for the American Red Cross
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