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LUNA
Hello, I’m Donald. I’m new to the group. How is LUNA calculated? I ran across the below calculation and would like feedback on its accuracy. Please assist:
Total Net Assets
less: Restricted Net Assets
less: Property, Plant and Equipment
plus: Debt Secured by Property or Equipment
less: Any other long-term assets
equal: LUNA
Thanks
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3 Replies
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Hi Donald…welcome to the forum!
Your calculation looks consistent with that used in this cool template that is available on our site: https://nonprofitfinancials.org/resources/calculate-your-luna/.
Also, if you weren’t able to join us recently for our webinar on financial ratios – which included discussion of LUNA – you can access the materials here: https://nonprofitfinancials.org/resources/nonprofit-ratios-resources-list/
We look forward to hearing from others in the forum. Thanks again for joining us!
nonprofitfinancials.org
Calculate Your LUNA - Nonprofit Financial Commons
This Excel-based tool can help you quickly and clearly see your LUNA — your current Liquid Unrestricted Net Assets.
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Thank you Wade. I appreciate your help.
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Hello Donald, welcome to the community. Your calculation looks right to me. It follows the standard approach to calculating Liquid Unrestricted Net Assets, with the focus being on resources that are genuinely available for use. You are taking out restricted funds and less liquid assets such as buildings, while accounting for the related debt. The result gives a clearer picture of the resources the organisation can access. I think of it as the financial cushion for a rainy day.
