ANALYSIS OF FINANCIAL PERFORMANCE IN NON-PROFIT ORGANIZATIONS

Abstract

Non-profit organizations in Indonesia today still tend to emphasize the priority of program quality and do not pay much attention to the importance of the financial management system. Whereas a good financial management system is believed to be one of the main indicators of accountability and transparency of an institution. This study aims to find out how good the financial condition of non-profit organizations in Indonesia is, by using Return on Asset as a dependent variable that projects the financial performance of non-profit organizations, as well as using Current Ratio, Fiscal Performance, and Public Support 1 and also Public Support 2 as an independent variable. Apart from that, this research uses quantitative methods, and uses secondary data. The data used is a combination of time series and cross section, where this study uses financial statements from 13 different non-profit organizations, with a period of 4 years starting from 2017-2020, so a total of 52 financial statements were used as test samples in this study. Of the four independent variables used in this study, there is one, namely fiscal performance, that has no relationship with or influence on the dependent variable. In addition, the other three independent variables have a significant influence on the dependent variable.