Glossary
Financial Reporting

Statement of Activities

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A Statement of Activities is a nonprofit financial report showing revenues, expenses, and changes in net assets over a specific period.
A Statement of Activities is a key financial report for nonprofit organizations that details revenues, expenses, and changes in net assets over a specific period. This report serves as the nonprofit equivalent of a for-profit income statement. It categorizes activities by unrestricted, temporarily restricted, and permanently restricted funds, providing transparency into how the organization generates and uses its resources. By illustrating the financial performance and stewardship of its resources, the Statement of Activities helps board members, donors, and regulators evaluate the organization's effectiveness in fulfilling its mission and managing funds responsibly.

Key Takeaways

  • Reports nonprofit revenues, expenses, and changes in net assets
  • Shows activity by fund restriction types
  • Essential for transparency and donor reporting
  • Required for compliance and audits

Why It Matters

It demonstrates how a nonprofit generates and spends funds, ensuring transparency and accountability.

Real World Example

Imagine a small animal rescue nonprofit. At the end of the fiscal year, its Statement of Activities shows $200,000 in donations, $30,000 in grants, and $15,000 in fundraising event revenue. Expenses include $100,000 in animal care, $50,000 in salaries, and $20,000 in fundraising costs. The report also reflects changes in net assets by restriction: $50,000 was donor-restricted for a new shelter, and $20,000 remains in unrestricted funds. The board and supporters use this statement to assess financial health and the effectiveness of resource allocation.

How Aplos Helps

In Aplos, nonprofits can easily generate a Statement of Activities with accurate fund accounting. The report is customizable, ensuring organizations present their financial performance in accordance with nonprofit standards and donor requirements. Aplos automatically tracks income and expenses by fund, simplifying reporting for compliance and stewardship.
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Frequently Asked Questions

What is the purpose of a Statement of Activities?

It provides a clear summary of a nonprofit's revenues, expenses, and net asset changes for a period, supporting transparency and informed decision-making.

How does a Statement of Activities differ from an income statement?

While both report financial performance, the Statement of Activities categorizes revenues and expenses by fund restrictions, reflecting nonprofit requirements.

Who uses the Statement of Activities?

Board members, donors, auditors, and regulators use it to assess financial health, compliance, and effective use of resources.

Is the Statement of Activities required for nonprofits?

Yes, most nonprofits are required to prepare and present this report for compliance with accounting standards and regulatory bodies.

Can Aplos generate a Statement of Activities?

Yes, Aplos provides easy tools to create customized Statement of Activities reports, ensuring accuracy and compliance with nonprofit standards.

Related Terms

Restricted Fund
OMB Circular A‑133
Aging Report
Petty Cash
Modified Cash Basis
IRS Form 990

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