Date of Graduation


Document Type


Degree Name

Bachelor of Science in Business Administration




Farmer, Amy

Committee Member/Reader

Jensen, Molly


This study explores the need for financial performance measures in the nonprofit sector and the impact the 2008-2009 Financial Crisis had upon nonprofits’ efficiency. This analysis tests the hypothesis that the financial crisis actually improved nonprofit efficiency by forcing nonprofits to eliminate unnecessary costs, continue to produce their services, thus improving operational efficiency, despite decreased donor contributions and increased user need. Entries reported on nonprofits’ IRS 990 forms from 2003-2010 determined whether nonprofit efficiency was significantly different after the crisis. The efficiencies used to measure the impact of the Financial Crisis include: Program Expense Efficiency, Administrative Expense Efficiency, Fundraising Expense Efficiency, and Fundraising Efficiency. The results from this study show nonprofit efficiency as a whole did improve as a result of the financial crisis, thus improving the financial health of the nonprofit in the long-run.