Free Nonprofit Statement of Activities Template & Example

Remember that the strength of your organization’s SOA is a reflection of its commitment to transparency, accountability, and mission-driven success. Let’s navigate these challenges together, with precision, foresight, and the shared goal of creating lasting social good. Reporting noncash investing and financing activities requires separate disclosures.

What is the Statement of Cash Flows?

• Your nonprofit statement of financial position is another key document for your cause.
• Financial statements are one of the most important tools that the leaders of a nonprofit organization can use to ensure the future health of the entity.
• Organizations must follow basic accounting practices when filing these statements and find ways to share these details in ways donors can understand.
• Donated Materials – value of materials that have been donated to your nonprofit.
• The Statement of Cash Flows provides a clear picture of your nonprofit’s liquidity and ability to cover expenses.

Expenses in the Statement of Activities include all money flowing out of your organization. Since the statement of activities only needs to be prepared annually for the IRS, it’s tempting to forget about it until tax season comes around. It’s a good idea to revisit the statement of activities every quarter, or even every month, for an update. The main reason for this is that it can help identify discrepancies or errors as they happen, rather than scrambling at the end of the year.

Nonprofit statement of activities template

Relying solely on spreadsheets and figures may not fully capture the organization’s achievements and challenges. Yes, nonprofit organizations must follow the Generally Accepted Accounting Principles (GAAP). The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 958 is another set of principles often used. These standards provide guidelines for proper financial reporting, including the preparation of the Statement of Activities. Yes, many accounting software platforms have built-in templates and features to generate financial statements automatically. These tools can streamline the process and ensure accuracy in your financial reporting.

Statement of Activities: Reading a Nonprofit Income Statement

Unlike some other financial forms, it’s important to understand that the Statement of Activities is not a living document; it does not continuously update or change. Instead, it acts like a snapshot, providing a clear and concise picture of a nonprofit’s financial health during a specific time frame—typically the organization’s fiscal year. Sharing these 3 sections with donors provides transparency and helps them understand where their donation goes.

• Operating expenses are your employees’ salaries and the amount spent on equipment and supplies.
• It’s a key tool for analyzing liquidity and planning for future resource allocation.
• Nonprofit accounting can feel complicated for nonprofits without a solid financial background, but there are ways to make filing reports easier.
• Understanding net assets is essential because it helps you manage donor restrictions and ensures that you are using funds in accordance with donor expectations.
• Nonprofits must carefully track and report on the utilization of temporarily restricted net assets to ensure compliance with donor intent and legal requirements.
• By sharing what funds you collect and how they’re spent, donors can see how their gifts support your nonprofit’s programs and beneficiaries.
• But if you’re spending more than you bring in for several periods in a row, you’re headed for trouble.

• This type of document allows both the Internal Revenue Service and the public to look at the nonprofit’s finances.
• Net assets with donor restrictions are usually never below zero, although special reporting may apply to an “underwater ” endowment balance (topic not covered here).
• Blackbaud Financial Edge NXT simplifies nonprofit accounting, providing pre-built templates and intuitive tools to enhance reporting.
• The money that was spent on capital investments, like real estate, equipment, and other fixed assets and also any money received from the sale or benefit of those investments.
• If you’re like most nonprofit leaders, you didn’t get to the top of your organization by burying your nose in nonprofit financial statements.

Compared with Feeding America and Save accounting services for nonprofit organizations the Children, the financial statements used in this report are easier to follow and provide fewer details. Board members and other leaders can use this statement for better insight into how much is available to pay expenses. Instead, you’ll be reporting on net assets and how you use funds to advance your mission. Month-to-month comparisons are crucial for detecting trends, anomalies, and areas of concern in your financial activities. Skipping this analysis can lead to missed opportunities for adjustment and improvement, potentially causing long-term financial issues.

Change in Net Assets: How much money did you make?

Your organization must also list expenses on your Statement of Activities report. You should split your expenses by programs, administrative, and fundraising costs. Yes, Aplos provides easy tools to create customized Statement of Activities reports, ensuring accuracy and compliance with nonprofit standards. If your organization qualifies as a nonprofit, it does not have to pay any federal taxes on the money it brings in.

Statement of Financial Position – Highlights

The way these funds are reported in the Statement of Activities helps provide clear insight into the financial constraints and capabilities of the organization. By providing a clear snapshot of the nonprofit’s economic activities, a Statement of Activities allows stakeholders to assess the organization’s financial health. This transparency and accountability is crucial for building trust with funders, donors, staff, volunteers, and even future supporters. Creating a comprehensive and accurate statement of activities is crucial for nonprofit financial management. The following steps outline the process, ensuring compliance with accounting standards and providing valuable insights for stakeholders. Developing and enforcing robust internal controls is key to safeguarding financial accuracy.