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The nonprofit Statement of Activities also refers to your income statement. It summarizes your revenues and expenses for a specific period and allows both your organization and stakeholders to understand how you\u2019re managing your resources. The nonprofit Statement of Financial Position, also known as a balance sheet, provides information as of a specific date about your organization\u2019s financial health. This statement offers financial insights through your organization\u2019s liquidity and financial flexibility\u2014represented as assets and liabilities. The statement of activities is like a storybook that tells us about the organization’s income and expenses over time, ending with net assets.<\/p>\n<\/p>\n
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The Cash Flow Statement includes total cash received minus total cash spent. On the other hand, a nonprofit generates a statement of financial position. Furthermore, it reflects assets on hand for furthering the mission of the organization. A nonprofit\u2019s version of an income statement is called a statement of activities. \u2022 Operating activities This includes revenues and expenses from operating your nonprofit (such as the cost to pay salaries and buy office supplies) and revenue from contributions. Nonprofits are unique because the focus is on accountability, not profitability.<\/p>\n<\/p>\n
The balance sheet can be prepared on a monthly, quarterly, or yearly basis. An income statement is a record of the revenue and expenses of a nonprofit organization over a period of time. This statement provides insights into whether or not the nonprofit is generating more income than it is spending. The income statement can be prepared on a monthly, quarterly, or yearly basis. Interpreting a non-profit income statement involves analyzing the relationship between revenue and expenses, as well as the organization\u2019s overall financial performance.<\/p>\n<\/p>\n