What are the basic financial reports that a nonprofit must prepare? #motor #finance #corporation


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ


What are the basic financial reports that a nonprofit must prepare? #tv #finance


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ


Nonprofit excellence #nonprofit #excellence


#

The Canadian Nonprofit Employer of Choice™ Awards

In spring of this year, The Philanthropist and Ignite NPS released a paper, Trends and Forces Reshaping Nonprofit Organizations . In it they identify “Leadership Approaches and Workforce Expectations” as one of four key themes that nonprofit leaders need to explore to help their organizations effectively accomplish their mission and thrive in a complex environment of accelerating change.

The thesis is made that advancement in technology, changing demographics and intensified competition are shifting workplace values and expectations, leadership models, the ways staff participate and how work gets done in nonprofit organizations. To succeed in this environment, it is suggested that effective leaders are adopting new approaches to attract and retain talent.

In a quest to create “decent workplaces” thought leaders are debunking the myth that employees in the nonprofit sector are willing (and should be expected) to work in this environment in exchange for the opportunity to “do good.” Today, talented people can find a socially meaningful career outside a traditional nonprofit organization, which intensifies the competition for qualified staff. And, while there are larger systemic issues, Imagine Canada found there are also practical human resource issues at the organizational level that cause young professionals to leave the sector. These issues include inadequate HR management, challenging organizational cultures, lack of clarity around job expectations, and limited training and career development.

2015 was the first year of the NEOC Awards program

The Canadian Nonprofit Employer of Choice™ Awards (NEOC) recognizes charitable organizations who have committed themselves to become better managers of both financial and human resources.

Candidates for the NEOC award are those nonprofits whose people leadership and vision translate into exemplary talent management practices, supporting successful mission delivery in the communities they serve.

“The sector is capable of competing for the skills and talent it needs. To compete, organizations need to remain current with: their labour market competitors, the reasons why people are or would be drawn to sector employment and how to build workplaces that respond to labour force needs.”
Stepping Stones: Envisioning what’s next for building talent, Community Foundations of Canada, 2015.

In celebrating the early adopters of best practice governance strategies, the NEOC Awards will also help establish a body of knowledge that will further advance and strengthen nonprofit employment practices in this country.

2017 NEOC award recipients will be announced in February, 2018.


5 tips to consider before you become a nonprofit consultant – Idealist Careers #nonprofit #it #consulting


#

5 tips to consider before you become a nonprofit consultant

Photo credit: docstockmedia, Shutterstock

In my work with young nonprofit professionals, a question I get asked a lot is how one can transition from working inside an organization and into becoming a successful consultant that serves other nonprofit organizations. To answer that question I caught up with my friend and colleague, Vanessa Chase, the President of The Storytelling Nonprofit and creator of the Storytelling Non-Profit Virtual Conference.

Vanessa is only 25-years-old yet is in the process of writing her first book, Co-Chairs YNPN Vancouver, sits on the board of directors of a local nonprofit organization, speaks at conferences internationally, and has so many requests for her services that she is in the process of hiring her first employee after only being a consultant full time for just over a year. Amazing! How did she do it? Let’s find out…

Natasha: How did you decide to start consulting?

Vanessa: Prior to my work in consulting, I worked as a Development Officer doing fundraising. I really enjoyed my work and I loved being in the nonprofit sector. But as I was doing some reflection in 2012, I realized that there were some aspects of my job that I loved and excelled at, while others that I didn t enjoy at all. I wanted to create a career that really leveraged my strengths. Shortly after that time, I started picking up some freelance communications work from other nonprofits and I was moonlighting as a writer for about a year. During that time I also started blogging and found that I really enjoyed that, too. Eventually, I had enough freelance work and a big enough blog audience that I felt ready to make the leap. I ve been working for myself full time since the Spring 2013.

Natasha’s takeaway tip #1 . Build your business part-time before you jump in all the way. Test the waters and build your audience before making the leap.

What were the first steps you took before you started full-time consulting?

I was still working full time when I first started consulting, which was a huge blessing! Outside of work, I was able to dabble and experiment with the type of work that I wanted to be doing without having to worry about the amount of money I was making. I had identified a few areas of my work in fundraising that I loved communications, marketing and copywriting and I decided to start looking for small contracts doing that kind of work. I told everyone I knew about my new venture and invited them to connect with me anytime. I also started meeting organizations that I was interested in and approached them about their work needs. While not all of these leads would pan out, enough did and that helped to boost my confidence that I could work for myself.

In addition to gaining some work experience, I started saving a little extra every month so that I d have a safety net for about four months after I left my job.

Natasha’s takeaway tip #2: Prove to yourself that you are capable of making money as a consultant. You cannot be focused on really helping others when you’re financially stressed all the time.

What does it take to be successful as a consultant?

At a very basic level, you do have to know your craft. There s no way of getting around that! Aside from that, I think there are a couple of key qualities that people who work for themselves have.

Discipline. Sometimes you re going to feel like not doing work and instead binge watching TV or wasting time online. But getting the work done comes down to you. It can be tough sometimes, but the good news is that discipline is a learned skill and one that you can get better at.

Have a long-term vision. It s easy to fall into a pattern of flying by the seat of your pants when you work for yourself. But as I saw in my first six months of self-employment, that s not how you re going to get ahead. You really do have to have a larger vision of what you want for your work and your company. That way you can say yes to the right opportunities and no to the ones that will not help you realize that vision.

A willingness to go against the grain. Even in our modern day and age, there are still a lot of misconceptions and stereotypes about people who work for themselves. For months after I started my business, people would constantly say, Well, at least you can always go back to a real job if this doesn t work out. So many people can t imagine a type of work beyond their 9 to 5. It does take courage to zig when everyone else is zagging, but I ve found that it s been the most rewarding period of my life so far.

Natasha’s takeaway tip #3 . Be prepared to feel uncomfortable. There is nothing easy about being self-employed – you set the rules, you do the marketing, you create the products, and you have to pick yourself up when you’re feeling down.

How have you been so successful at attracting clients?

Clients generally come to me one of two ways. Either they are referred by someone who knows about my work or they are familiar with my website and inquire about my services through the contact form on my website. Regardless of what way they come to me, it always requires lot of hustle and consistent marketing. I contribute most of my success to my blog and weekly email newsletter. By building up an email list of people who are interested in what I’m talking about online, I have a list of warm prospects that I can consistently communicate with and potentially land as clients. Alternatively, if I’m teaching an e-course or a webinar I can also let those folks know about it through email.

I’ve also found that I’ve had good luck with content marketing on LinkedIn, especially groups, which tend to refer about 50% of my website traffic each week.

Natasha’s take-away tip #4: Start building your list of prospects now as it will take some time to cultivate these relationships before they actually put money down to hire you.

Do you have any tips for making the transition between working for an organization and working for yourself?

Making the transition to working for yourself looks different for everyone. Right before I gave notice at my last job, I was feeling really terrified. I was worried if it was the right decision. I was worried about making enough money. I was worried about failing. But I happened to read Career Renegade by Jonathan Fields around that time and he had some advice about making the leap that has stuck with me ever since. He said that at some point, you re not going to know how successful your side venture could be unless you give it 100% of your undivided attention. Yes, there is a lot of uncertainty as to whether or not it will work out, but unless you try you will always be faced with the uncertainty of wondering, what if. That was enough to push me over the edge because I knew that if I didn t try I would sincerely regret it.

Natasha’s takeaway tip #5 . Mentally prepare to give your business 100% of your attention while you’re getting started. Put non-business-building-related projects on hold temporarily so you can get used to your new routine.

Got a question about starting out as a consultant that we didn’t answer here? Post your question below and one of us will be happy to get back to you.

More about Vanessa:

Vanessa Chase is the President of The Storytelling Nonprofit and creator of the Storytelling Nonprofit Virtual Conference hosted every January. She regularly presents to nonprofits in the US and Canada about how to fundraise using the power of storytelling.

Through her consulting and strategy work, she has had the opportunity to work with Love Global Foundation, Union Gospel Mission, the National Coalition Against Violent Athletes, A Rocha Canada, Boucher Institute of Naturopathic Medicine, Immigrant Services Society of British Columbia, Wagner Hills Ministries and Cancer Care Connection. Her work has resulted in combined $10 million fundraised and significant improvements in donor relations that will create lasting legacies for the causes they support. Prior to working in a consulting capacity, Vanessa worked as an in-house fundraiser at Union Gospel Mission and the University of British Columbia.


What are the basic financial reports that a nonprofit must prepare? #0 #finance #cars


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ


Massage therapy schools springfield mo #infant #massage, #infant #massage #usa, #vimala #mcclure, #nurturing #touch, #special #touch, #appropriate #touch, #parents #touch, #attachment, #bonding, #massage, #imusa, #im #usa, #nonprofit, #baby, #baby #massage, #massage, #attachment #and #bonding, #infant, #child, #children, #ciim, #infant #massage #training, #infant #massage #certification, #infant #massage #classes, #special #needs, #touch #therapy, #colic


#

Infant Massage: A Handbook for Loving Parents

The Fourth Edition of the book that started it all is now available!

What is infant massage ?

Infant massage is a parent tradition within many ancient cultures that has been re-discovered and adapted for parents and babies around the world. Research conducted through the Touch Research Institute at the University of Miami School of Medicine confirms the importance of a secure environment and nurturing touch in the healthy growth, development and maturation of children. According to Vimala McClure, author of Infant Massage, A Handbook for Loving Parents. “Infant massage is an ancient art that connects you deeply with the person who is your baby, and helps you to understand your baby’s particular nonverbal language and respond with love and respectful listening. It empowers you as a parent, for it gives you the means by which you become an expert on your own child.”

The Infant Massage USA® Mission

In partnership with the International Association of Infant Massage, our mission is to promote nurturing touch and communication through training, education, and research so that parents, caregivers and children are loved, valued, and respected throughout the United States and the world community.

Watch Now: Infant Massage at the Achievement Centers for Children

Infant Massage USA is endorsed by leaders in the field of child development

“During my studies in child development, I had never come across infant massage. In 2002, when I was invited to speak at the conference of the International Association of Infant Massage, I quickly realized that the classes taught by the Certified Educators (CEIMs) are based on a deep understanding of my father’s work. This excellent program recognizes the crucial importance of the early attachment relationship between baby and mother (or primary attachment figure). I have studied the Infant Massage USA® program theory and practice and in my lectures I now routinely include a short video of a CEIM teaching a class of parents how to massage their babies.”

Sir Richard Bowlby

“Infant Massage USA is a groundbreaking organization. Mothering published articles by Vimala in the early 1980s and the organization that she helped to found is the leader in the field of infant massage today. I heartily endorse the work of Infant Massage USA® because the organization understands that touch is not just a good idea, it is a necessary nutrient. I would recommend that you spoil your children with the indulgence of your touch. Perhaps there is nothing quite so personal and intimate as the gift of infant massage, which enriches the parent as well as the baby. Infant massage establishes a tradition of touch that enhances your relationship with your child for years to come. Look for an Infant Massage USA infant massage class in your area. As the leader in the field, you can rely on their highly trained, internationally recognized professional educators to help show you the way.”

Peggy O’Mara
Editor and Publisher, Mothering

“Besides the fact that it is just plain fun to touch your baby, infant massage helps babies grow and develop better. In some Eastern societies a mother is reprimanded if she doesn’t give her baby a daily massage. One of the most exciting areas of research is the connection between touch and growth. Infant Massage USA provides excellent training. Their Certified Educators of Infant Massage (CEIM) are skilled in supporting new parents in learning the art of infant massage while deepening their relationship with their baby. It is a beautiful experience for both parents and babies.”

Doctor William Sears and Martha Sears, RN


Online Nonprofit Management, M #nonprofit #management #degree #online


#

Nonprofit Management, M.N.M.

The School of Public Administration’s Master of Nonprofit Management (M.N.M.) is completely online and provides opportunities for students to prepare for employment or advance their careers as administrators in nonprofit management. The program is intended to produce graduates equipped with the management and analytical skills needed for successful careers in the nonprofit sector.

Admission Requirements

Applicants must meet the general university admission requirements. For consideration, applicants must provide:

  • Undergraduate transcripts with GPA of 3.0 (4.0 scale) or equivalent
  • Graduate Transcripts (if another graduate degree in a related field has been completed)
  • Resume
  • A personal goal statement outlining interest in the program and future goals. This is a key component of the admission review process and serves as an example of the applicant s ability to express him or herself in writing. The goal statement must be no longer than two pages and should address the following:
    • What is your reason for pursuing graduate study in Nonprofit Management including your future goals and plans?
    • What specific areas of Nonprofit Management interest you?
    • Nonprofit sector experience is preferred, not required.
    • What makes you a special candidate for admission to this program?
  • Three letters of recommendation from professors or professional individuals

The application, sealed transcripts and all supporting documents must be on file with UCF by the posted application deadline date.

A limited number of students who do not meet these requirements may be admitted on a provisional basis. These students must demonstrate proven nonprofit sector leadership experience, present strong recommendations from either academic or professional advisers and provide a clear statement of education goals. More specific information on provisional admissions may be obtained from the department.

Students are expected to be computer literate upon entry to the program or are expected to obtain these skills immediately upon admission to the program. This program is completely online, so computer skills are necessary to access the courses.

Non-Florida Resident Program

The department of Continuing Education is pleased to offer a special cohort program option for the M.N.M. The cohort is designed specifically for students who are not Florida residents and is offered at less than the regular non-resident tuition rate. Admission standards and degree requirements are the same as for the traditional program. For additional information about the non-Florida resident Master of Nonprofit Management Cohort Program, contact the Division of Continuing Education .

Program of Study: 36 Total Credit Hours

All courses are available in a Web-based format. Courses and credit hours used for undergraduate degrees cannot also be counted toward the M.N.M. degree.

Core Courses: 30 Credit Hours

  • PAD 5145: Volunteerism in Nonprofit Management
  • PAD 5146: Nonprofit Resource Development
  • PAD 5850: Grant and Contract Management
  • PAD 6142: Nonprofit Organizations
  • PAD 6149: Nonprofit Administration*
  • PAD 6237: Ethics and Governance in Nonprofit Organizations
  • PAD 6327: Public Program Evaluation Techniques
  • PAD 6208: Nonprofit Financial Management
  • PAD 6417: Human Resource Management
  • PAD 6335: Strategic Planning and Management

*This course is the capstone learning experience for the program requiring the development of a portfolio and analysis that demonstrate the student’s mastery of the NASPAA Universal Competencies.

Restricted Elective: 3 Credit Hours

This elective must be a Public Administration 6000-level course that is chosen after consultation with the student’s academic advisor.

Non-restricted Electives Option: 3 Credit Hours

For the non-restricted elective option, students take one elective course in addition to the restricted elective above with the prior approval of the program director. The elective course is to be in the student’s area of interest, such as public administration, health care, or the arts. A PAD Internship may also be used as an elective. The MNM program does not accept 400-level courses.

National Nonprofit Leadership Certification Option (6 credits):

  • Internship (3 credit hours)*
  • Elective (3 credit hours)

National Nonprofit Leadership Certificate: The Nonprofit Leadership Alliance represents the achievements of national academic and experiential standards in nonprofit management. Students pursuing the Nonprofit Leadership Certification must meet the Nonprofit Leadership Alliance mandated requirements including a 300 hour internship or documentation of employment history in the nonprofit sector. Please contact program Director Dr. Stephanie Krick for additional requirements.

*An internship is required for students with less than 300 hours of nonprofit sector experience. Students who provide documentation of at least 300 hours of experience in the nonprofit sector may have their internship waived, but must complete an approved elective (3 credit hours) in place of the internship. Work experience does not count for credit toward the MNM program.

Additional Program Requirements

Students must achieve a grade of B- (80%) or better in every course listed under required courses. Students must maintain a program of study and graduate status GPA of 3.0 or higher and can only graduate with a graduate status GPA of 3.0 or higher.

For additional information contact:

Ready to get started? Apply now.

Due to restrictive state regulations, UCF is not permitted to provide online courses or instruction to students in some states. More information is available here .


What are the basic financial reports that a nonprofit must prepare? #fair #go #finance


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ


What are the basic financial reports that a nonprofit must prepare? #international #trade #finance


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ


What are the basic financial reports that a nonprofit must prepare? #car #finance #options


#basic finance

#

Home 2-Minute FAQ Finance What are the basic financial reports that a nonprofit must prepare?

What are the basic financial reports that a nonprofit must prepare?

The basic financial reports of a nonprofit organization include:

  • Statement of financial position (also called a balance sheet): This summarizes the assets, liabilities and net assets of the organization at a specified date. It’s a snapshot of the organization’s financial position on that date.
  • Statement of activity (also called an income and expense statement): This reports the organization’s financial activity over a period of time. It shows income minus expenses, which results in either a profit or a loss.
  • Statement of cash flow: This summarizes the resources that become available to the organization during the reporting period and the uses made of such resources. It’s especially useful in real-time because it reports income that has been received and expenses that have been paid. A statement of projected cash flow is helpful for the board and organization to be able to anticipate any shortfalls for planning purposes.
  • Statement of functional expenses: Reports all expenses as related either to program services or to supporting services. Expenses under program services are shown divided among the various programs. Expenses under supporting services are generally divided between (1) management and general expenses and (2) fundraising expenses.

While these reports are extremely important in terms of understanding your organization’s financial health and conveying that information to your board, you’ll also find that these types of reports will often be required by funders when applying for grants.

Other reports, depending on your organization’s needs, are: government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investment reports.

A detailed list of financial reports for nonprofits, and related definitions can be found in Financial Statements of Not-for-Profit Organizations, by the Financial Accounting Standards Board (www.fasb.org ).

There are also a few accounting basics you should keep in mind. A qualified bookkeeper can help you to ensure reports are prepared properly and in a timely manner. He or she can also help to reconcile bank statements on a monthly basis, which is critical, and lend support and key information during budget development.

Finance FAQ