Nonprofit Statement of Financial Position: Guide + Template

For franchisees, starting out with a pre-configured accounting system that’s tailored to the exact needs of the business makes onboarding simple and quick. With AccountsIQ now available to Staffology and Cascade business customers, we are planning to expand its integration across IRIS’ accounting division products. This initiative will further enhance the unified service offering, providing even more businesses with powerful, integrated solutions for their payroll, HR, and finance needs. To learn more about the IRIS and AccountsIQ partnership, visit the IRIS HR Marketplace. Darren has been with AccountsIQ for over twelve years, joining when the company had just 14 employees and has played a key role in scaling the business to over 90 employees supporting more than 20,000 users worldwide. A Chartered Accountant who trained with KPMG, Darren’s career in finance and industry prior to joining AccountsIQ involved senior finance positions at Kefron, Crowe, and IRBC, with a heavy focus on systems.

3 Net assets

If a company’s stock is publicly traded, earnings per share must appear on the face of the income statement. In summary, the net assets section of nonprofit financial statements provides valuable information about the organization’s financial health and the availability of funds. Understanding the different categories of net assets, including unrestricted and restricted, is essential for effective financial management and decision-making. To present the financial information in a structured manner, nonprofit financial statements often include tables that summarize the data. These tables provide a clear and concise overview of the organization’s assets, liabilities, revenues, and expenses. Preparing clear and compliant nonprofit financial statements is a fundamental responsibility of nonprofit organizations.

Unlock the secret to creating successful nonprofit financial statements

A financial statement makes it easy to understand the current position of an organization and shows a clear view of the financial condition of an organization. This template is an example of a research nonprofit comparative financial statement. A comparative statement is used to compare the financial condition of an organization of the current year to that of the previous year. This template provides https://nerdbot.com/2025/06/10/the-key-benefits-of-accounting-services-for-nonprofit-organizations/ a sample template of a comparative financial statement and cash flow statement. Using this template we can also understand and learn about the basic accounting principles. Your nonprofit’s financial statements are only as accurate as the financial data you input.

Free Printable Nonprofit Financial Statement Templates

The Statement of Functional Expenses details expenses you report on your Statement of Activities by the function they serve. This document is vital to building trust with stakeholders who can easily view how you’re utilizing resources. Whether you have an in-house leadership team invested in your finances or work with an external accounting firm, accurate statements will show you the best path forward.

It’s usually laid out as a table, with various types of payments along one axis and the three aforementioned functional expense categories along the other. It provides an overview of your organization’s transactions over the fiscal year, which helps you evaluate your fundraising success and cost allocation. Then, you can use your results to create a better-informed operating budget for the coming year. Private equity funds are notorious for their FP&A and financial due diligence requirements. You’re likely to be responsible for providing cash flow projections, financial modelling and forecasting to a greater level of detail than in many non-PE companies. Senior leaders will also look to the finance team to provide industry benchmarking and present insights and scenario plans for multiple growth opportunities.

• Income statements are prepared on a monthly or quarterly basis and compared to the budget and forecast on the statements.
• The statement of activities, akin to an income statement in the for-profit sector, details revenues and expenses to reflect changes in net assets over time.
• All in all, preparing and creating financial statements for non-profit organizations is not easy.
• For example, AccountsIQ integrates with the global payments company TransferMate.
• A nonprofit’s primary purpose can get sidelined because key personnel are busy reporting on (often in Excel) where every penny comes from and goes.
• By showing the public exactly how donation dollars are being used and when you’re involving them on a much deeper level.
• Advancing your mission and doing change-making work is about managing how funds flow from supporters to impact.

How automated workflows are transforming the approval process for finance teams

Since the Form 990 filed by the nonprofit becomes public information, you can learn much about a nonprofit by reading the information on Form 990. The website guidestar.org is a resource one can use to obtain financial (and other) information reported on nonprofits’ Form 990. The investing activities section of the SCF reports the amounts spent to purchase long-term assets such as accounting services for nonprofit organizations equipment, vehicles and long-term investments.

• This metric helps determine whether the nonprofit is balancing mission-driven spending with necessary operational support.
• One key aspect of the additional disclosures is the disclosure of significant accounting policies.
• Temporarily restricted funds are earmarked for specific projects or time frames, necessitating careful tracking and reporting to ensure they’re used as intended.
• This integration is designed to help service-based businesses overcome the common challenges of disconnected financial and operational workflows, enhancing efficiency, accuracy, and scalability.

Large organizations that actively fund charities review financial track records and spending patterns before actively supporting them. Individuals also feel more confident contributing to charities when they can track where their money is going. In fact, give.org’s Donor Trust Report states that 64% of of all donors say trust in a charity is extremely important, yet only 20% report having a high level of trust in nonprofits.

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Most importantly, be sure your nonprofit financial software provides the accounting tools for nonprofit organizations’ unique requirements. In this blog post, we delve into the best practices for preparing nonprofit financial statements. Whether you are an experienced financial expert in the nonprofit field or a beginner, this guide offers helpful insights. Here’s a comprehensive 10-step guide to preparing accurate and transparent nonprofit financial statements.