Decomposing non-profit organisational growth using the financial statement in the effects of financial leverage, efficiency, and growth

A non-profit organisation’s sustainable growth rate is essentially a strategic management tool to determine the range within the organisation can be ‘planned’ to grow. The expression to determine its value derived in Jegers (2003) is a starting point to analyse actual organisational growth in the context of management control procedures. Under fairly realistic conditions, it is shown that it is possible to assess the separate impacts on realised growth of financial leverage change, efficiency improvement or deterioration, and profitability. This paper is a, remote, continuation of joint analytic work with Willem Buijink on the use of financial statement data to describe economic concepts.