Free Download: Nonprofit Statement of Activities Template

These two documents provide accounting services for nonprofit organizations a brief overview of how the organizations’ net assets have changed during that given period. The nonprofit statement of activities is one of the primary nonprofit financial statements. It is basically the nonprofit income statement because nonprofit entities do not have an income statement. The purpose of the nonprofit statement of activities is to provide details about transactions of the nonprofit entity how those transactions are providing for the organizations various programs and services. Nonprofit financial statements are documents that provide a summary of the financial activities and position of a nonprofit organization.

• This section will delve more deeply into the key components that make up a Nonprofit Statement of Activities.
• Financial management systems built for nonprofits not only automate the reconciliation process but also provide detailed tracking and reporting capabilities for restricted fund management.
• By understanding and utilizing this tool, nonprofit leaders can enhance both their strategic decision-making and their accountability to donors, volunteers, and the communities they serve.
• You can publish the statement of activities on your website, in your annual report, or share it directly with your donors and any grant-making organizations you depend on.
• For instance, contributions might include individual donations, corporate sponsorships, and fundraising event proceeds, each of which can be tracked separately to assess their impact.
• If a company’s stock is publicly traded, earnings per share must appear on the face of the income statement.

Template

If you already organize your financial transactions into those 2 parts, you can map it to one year report using this template. If you’re in charge of the finances of your non-profit organization, you need to be aware of the fact that the accounting tasks required of you will be different from those required of a for-profit company. The most practical way to keep up with accounting needs is to have a Non Profit Financial Statement Template that you use for all your accounting needs. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ confirm your territory. You’ll also have to present your expenses in a specific way that may differ from how you present them for your audit.

Net Assets: Unrestricted, Temporarily, and Permanently Restricted

Instrumentl is your go-to resource for all your nonprofit needs and questions. If you’re unsure how to make these distinctions, check out this post on the difference between restricted and unrestricted funding. Whether you know it or not, the Statement of Activities is the unsung hero in the financial story of your nonprofit.

Report: Success Rates for Different Types of Grants

We will not discuss the accounting which is similar to that used by for-profit businesses. If you are not familiar with accounting for businesses or you need a refresher, you will find explanations, practice quizzes, Q&A, and more by visiting our course outline. It is also worth noting that the valuation of assets is based on their historical cost or fair market value. Historical cost represents the original purchase price of the asset, while fair market value is the estimated price that the asset would fetch in the open market. The valuation method used depends on the accounting policies of the organization. This article is for informational purposes only and should not be considered financial advice.

• If you’re looking to understand how your nonprofit is spending its money, the statement of activities is a valuable resource.
• The most significant source of revenue for most nonprofits is contributions received.
• Recovery Connect scaled their nonprofit with Instrumentl, streamlining grant management and eliminating inefficiencies.
• Finally, financing revenue comes from the earnings and interest earned on your financial activities and savings.
• It’s also important to note that some assets may have more liquidity than others, which is good to keep track of in case of an emergency.
• External (audited) nonprofit financial statements must follow Generally Accepted Accounting Principles (GAAP) standards.

These statements are crucial for transparency and accountability, as they allow stakeholders to assess the organization’s financial stability and make informed decisions. The Statement of Activities is essential for donors, grantors, board members, and other stakeholders, as it provides a clear picture of how a nonprofit is generating and using its resources. Nonprofits use the statement of activities to review changes to their net assets and show revenue and expenses over the accounting year.

Key Differences Between a Statement of Activities and a For-Profit Income Statement

• This statement is important because it shows the actual cash position, which may differ from what is reported on the other two statements.
• An organization without owners and with the main purpose of providing services needed by society.
• This article provides practical tips for updating your mission, including reasons for change, a step-by-step guide, and how to stay focused throughout the process.
• Having clear and accurate statements can go a long way toward establishing trust in potential donors looking for new organizations to support.
• The Statement of Functional Expenses reports expenses based on their nature and function.
• As an executive or financial officer, make it a habit to regularly review all financial statements.

This report can help you explain to your board why you have less cash even after a great fundraising month (maybe you invested in some much-needed equipment). But many times they don’t fully understand what the report is, and what they’re looking for is something that’s not actually in the report. Essentially, it shows you how much money you’ve “made” or “lost” during that period, which is why it’s often called a Profit-And-Loss Statement (or an Income Statement) in a for-profit company. When a for-profit business has assets, they can usually use them however they want– to buy equipment, give raises, invest in real estate– but nonprofit assets are often more complex. The Statement of Financial Position gives you a snapshot of your financial health by revealing the underlying value of what your organization owns.