Deep Financial Trouble
The website Charity Navigator sent out an email today listing ten charities in "deep financial trouble." As they put it:
If an organization owes more than it owns, that's a bad sign. If the bills it owes by the end of the year are more than it can pay, that's an even worse sign. These 10 charities are insolvent. Not only do their total liabilities, or what they owe, exceed their total assets, they also maintain negative working capital -- that is, the bills they owe in the next year exceed the short-term assets they can use to pay those bills. While these charities may not be facing bankruptcy, their fundamental insolvency puts these charities in a very dangerous position.The deepest trouble? American Christian Cause has a negative working capital of $-2,183,899.
Second place on the list goes to the National Center for Freedom and Renewal at $-1,034,607.
For a complete list, go to Charity Navigator's site.