Key nonprofit reports including the Statement of Financial Position, Statement of Activities, and Statement of Functional Expense can be accessed through Financials in the navigation bar:
Statement of Financial Position
The Statement of Financial Position, used in nonprofits, is the equivalent of a for-profit business's balance sheet. This report provides a snapshot of your organization's finances at a point in time.
The equation that applies to the Statement of Financial Position is: Assets = Liabilities + Net Assets
- Assets include accounts with cash and cash equivalents.
- Liabilities include accounts payable, accrued expenses, and deferred liabilities.
- Net Assets, which replaces the equity section of a for-profit balance sheet, is the balance of assets after liabilities have been subtracted.
Statement of Activities
The Statement of Activities is the equivalent of a for-profit business's income statement. This report reflects revenues and expenses that impact your organization's finances over a period of time.
The equation that applies to the Statement of Activities is: Revenues - Expenses = Change in Net Assets
Revenues and expenses are broken down by account, or type of activity. GAAP outlines how revenues and expenses should be classified.
Statement of Functional Expense
The Statement of Functional Expense report is used solely in nonprofit organizations. This report shows expenses by functional category (Program(s), Management & General & Fund Development) and natural account classification (Payroll, Professional Fees, Supplies, etc.)
The detailed breakdown of overall expenditures is helpful for auditors, board members, and donors who like to see how the organization spends its funds. This data is also used by services that generate nonprofit charity ratings.
In the example below expenses are displayed in a grid with Account Name on the left and Services on the right. Totals are at the bottom.