10 Nonprofit Financial Statements Examples You Need to Know

Let's face it – nonprofit financial statements aren't exactly the life of the party. 😴 But they ARE the backbone of your organization's health! These documents aren't just boring spreadsheets; they're the storytellers of your nonprofit's journey, showing donors and stakeholders that you're managing their hard-earned dollars wisely.

In this guide, we'll break down the 10 most important nonprofit financial statements examples in plain English (no accounting degree required!) and show you how they can transform your nonprofit's financial game.

1. Statement of Activities: The Money Story 📈

Think of the Statement of Activities as your nonprofit's money movie – it shows all the exciting plot twists of income and expenses over time. This nonprofit financial statements example answers the burning question: "Are we staying within budget while crushing our mission goals?"

The Reality Check: 😲 In 2023, advised fund grants dropped to $54.77 billion. Yikes! This shows just how tough the funding landscape can be, making this statement crucial for tracking where every dollar comes from and goes.

Pro Tip: ✨ Use tools like Aplos fund accounting software to make this statement sing with clarity – because nothing makes donors happier than seeing their contributions making real impact! Check out our comprehensive guide to nonprofit financial statements to master these statements.

2. Statement of Financial Position: Your Financial Selfie 🤳

The Statement of Financial Position (aka Balance Sheet) is your nonprofit's financial selfie at a specific moment. It captures your assets (what you own), liabilities (what you owe), and the difference between them (your net assets).

Why It Matters: 👀 With 91% of Gen Z planning to volunteer for nonprofits, transparency is non-negotiable. These young supporters want to see a healthy financial picture before diving in!

Fun Fact: By structuring your chart of accounts properly, you can track unrestricted funds with laser precision, making your financial selfie Instagram-worthy for donors and regulators alike.

3. Statement of Cash Flows: Money Coming and Going 💸

Cash flow problems are the unexpected villain in many nonprofit stories. The Statement of Cash Flows shines a spotlight on how money moves through your organization from operations, investing, and financing activities.

The Challenge: 🦸‍♀️ Most nonprofits face cash crunchtime in August due to donation timing – making this statement your superhero cape for predicting and managing tight periods.

Stat That Matters: 45% of nonprofits feel prepared for cybersecurity incidents – but what about cash flow emergencies? This statement helps you prepare for financial plot twists!

4. Statement of Functional Expenses: Where Every Dollar Goes 🔍

This nonprofit financial statements example breaks down expenses by function – program services, administration, and fundraising. It's like having x-ray vision into your spending habits!

The Truth Bomb: 💣 Nonprofits with high administrative expenses often face pressure to cut these costs first to protect program funding – but this statement helps you make strategic decisions, not panic cuts.

Cool Tool Alert: 🛠️ Aplos' nonprofit accounting solution offers nifty reporting features that make creating this statement a breeze, saving you hours of spreadsheet headaches.

5. Budget vs. Actual Report: Reality Check Time ✅

This report is your nonprofit's reality check – comparing what you planned to spend versus what actually happened. It's like those "expectation vs. reality" memes, but for your finances!

Fascinating Find: 🔎 30% of surveyed nonprofits have a secondary revenue stream contributing at least 10% of total revenue – making this comparison essential for tracking diverse income sources.

Aha Moment: 💡 One Tidelands Church user said, "Aplos revolutionized our budgeting, making it easier and more accurate!" Who doesn't love easier AND more accurate?

6. IRS Form 990: The Transparency Champion 🏆

The IRS Form 990 might sound scary, but it's actually your nonprofit's chance to shine! This annual filing details your mission, programs, and finances for the world to see.

Surprising Stat: Tax responsibilities for nonprofits increased by 27% from 2017-2019 to 2022. Form 990 helps you navigate these growing compliance demands like a pro.

Remember This: Donors and grantmakers frequently check Form 990 before deciding to support your cause. Think of it as your nonprofit's financial dating profile – make it attractive!

7. Financial Statement Notes: The Juicy Details 🍊

The notes accompanying financial statements are where the real tea is spilled! They provide context, explain accounting methods, and clarify any financial mysteries.

The Stakes: There's a 15% penalty if you leave any amount unpaid beyond 10 days of receiving an IRS notice – proving how important these detailed notes can be for compliance.

Board Brilliance: Encourage board members to ask questions about these notes. It's not micromanaging; it's good governance that builds donor trust!

8. Annual Report: Your Year in Review 📚

The annual report is your nonprofit's highlight reel – showcasing achievements AND finances from the previous year. It's your chance to brag (humbly, of course) about your impact!

Inspiration Alert: Charity: Water's annual report brilliantly combines storytelling with financial data, using maps to show impact while clearly showing how funds create results.

Challenge Update: 47% of nonprofit leaders say donor recruitment remains their biggest headache – making annual reports crucial for connecting with and captivating potential supporters.

9. Restricted vs. Unrestricted Funds: Managing the Money Rules 🔒🔓

Understanding the difference between restricted funds (designated for specific purposes by donors) and unrestricted funds (flexible money for operations) is essential for smart nonprofit financial management.

Interesting Insight: About 18% of educational institutions are theological seminaries with unique approaches to fundraising based on their core values – showing how different nonprofits manage different funding types.

Expert Take: Accountant Stephen King emphasizes transparency by highlighting the need to differentiate between restricted and unrestricted assets in reporting – because donor trust depends on it!

Conclusion: Financial Statements That Work for You 🚀

Mastering these nonprofit financial statements examples isn't just about checking regulatory boxes – it's about empowering your organization to make better decisions, build trust with donors, and ultimately create more impact.

With tools like Aplos, you can transform these potentially intimidating documents into user-friendly resources that help your nonprofit thrive in today's competitive landscape. Remember, good financial management isn't just about numbers – it's about telling your mission's story through those numbers!

Ready to make your nonprofit financial statements work harder for you? 🚀 Try Aplos today and see the difference clear financial reporting can make!