Not-For-Profit

Quality of Earnings (QoE) in Not-for-Profit (NFP) refers to the assessment of the sustainability, predictability, and restriction levels of an organization’s funding sources and cash flows. Because NFPs do not seek net income for shareholders, a QoE analysis (often called a Quality of Revenue or Net Surplus Analysis) evaluates the dependency on specific donors, uncovers timing mismatches in grant recognition, checks compliance with donor-imposed restrictions, and isolates non-recurring windfalls to determine the true, normalized operating runway of the organization.