None for this lesson.

Instructor’s Note: Prior to this lesson, you will need to obtain copies of annual reports from foundations or other nonprofit organizations using the web site:
www.guidestar.org. You should obtain two copies of each report for each peer group.

Anticipatory Set:
All of us have heard the word “budget.” For our purposes, we will use the following definition of budget: “The total amount of money allocated for a certain purpose, including both income and expenditures.” Check for understanding of both income and expenditures. Have your learners write the definitions in their journals. Introduce the terms “gross income” and “net income,” and use the term expenditures with types of costs - fixed and variable. Have the learners write down examples.

• Write the following question in your journals and respond with specific details in your journal responses. “If you were given a $20 a week allowance, what would you spend your money on, and why? Do you think that you would have enough money to last until the next week?” Ask them to write about anticipated expenses and actual expenses they may have. Allow the learners to spend about five minutes writing down their answers and then spend another five minutes discussing what the learners have written.
  
  
• Divide the class into groups of three to four learners. Give each group two copies of a foundation or nonprofit annual report. Review terms that they will encounter in these reports: assets, liabilities, income, investment, credit, and debit.
  
  
• Pass out Attachment One: Annual Report Questions to the learners, and ask them to use their annual reports to complete Attachment One. Discuss the term “annual report” with them, which for our purposes is defined as the following: “A voluntary report issued by a foundation, nonprofit organization, or corporate grantmaking program that provides financial data describing their grantmaking activities.” Ask the learners to complete Attachment One which is a worksheet asking specific questions for them to answer. Answers are found in the annual report. Allow them 15-20 minutes to complete this worksheet.
  
  
• Bring the class together and have each group report as to their findings. Learners are to write the names of each foundation or nonprofit into their journals with key information learned from the presentations. Tell the class they will have a take-home assignment about what they learned.
  
  
• Have the learners take home the following question. Each is to bring in his/her response for the next class session

  My group analyzed the annual report for________________________________
  Foundation or nonprofit. Of all the other groups that gave information about a foundation or nonprofit, I firmly believe that the ______________________
  Foundation or nonprofit should be supported because of the following information that I learned from their annual report.

Learners will answer the take-home question:

My group analyzed the annual report for________________________________
Foundation or nonprofit. Of all the other groups that gave information about a foundation or non--profit, I firmly believe that the ______________________
Foundation or nonprofit should be supported because of the following information that I learned from their annual report.