Financial Statements of Not-for-Profit Organizations
Required Financial Statements
Not-for-profit organizations prepare financial statements that resemble those of business entities but use different terminology and emphasize donor restrictions.
- Statement of Financial Position.
- Statement of Activities.
- Statement of Cash Flows.
- Analysis of expenses by both natural and functional classification (presented in a separate statement, in the notes, or on the face of the Statement of Activities).
Summary
Financial statements provide information about financial position, operating performance, cash flows, and how expenses are classified and allocated.