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Statement of Cash Flows: How Nonprofits Track Inflow and Outflow of Money

Blackbaud

Nonprofits use the Statement of Cash Flows in several key ways: Planning and Budgeting: Forecasts cash needs and plans for future expenses. Indirect Method: Starts with net income and adjusts for changes in non-cash items and changes in working capital to arrive at cash flows from operating activities.

Finance 76
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Nonprofit Accounting Basics: 5 Fundamentals to Know

Get Fully Funded

Budgeting Your nonprofit’s annual budget is a key financial planning document that guides your organization’s spending and fundraising efforts. Most nonprofits break down the revenue side of their budget by source. It details all of the costs you expect to incur and the funds you predict you’ll bring in throughout the year.

Policy 52