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The 4 Core Nonprofit Financial Statements & Their Insights

Pamela Grow

Its helpful to organize this section according to the five primary categories of nonprofit revenueindividual donations, corporate philanthropy, earned income, investments, and grants to align with your budget and internal records. Internally, this report is most useful for budgeting. Liabilities. Net assets.

Liability 130
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What’s Your End-of-Year Strategy for Planned Gifts of Assets?

Blackbaud

He was a donor to one of our charity clients and we had talked about the possibility of gifting assets to reduce or eliminate tax liability. He was facing a significant tax liability if he didn’t get this completed before the calendar rolled into January. Bunching offers donors the possibility of minimizing tax liability.

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How to create your new nonprofit’s first budget

Get Fully Funded

When you’re just getting started, it’s critical that one of your first steps is to create your nonprofit’s first budget to help you manage both your organization and your finances as it grows. Without a budget, you can find yourself in deep water, fast, with more money going out than coming in.

Budget 98
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What’s the Cost Behind Starting a Nonprofit Organization in 2025?

Grant Writer Team

That’s why thorough planning and budgeting are so important. Marketing Materials: Budget $500 to $1,500 for printed materials, social media ads, and outreach efforts. Technology and Software: Budget around $1,000 annually for basic tools (email, accounting software, website hosting).

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Why Are Nonprofits Experiencing An Insurance Crisis? And What Can the Nonprofit Sector Do About it?

Blue Avocado

Lower liability insurance limits First, the community-based nonprofit sector generally must carry lower limits of liability insurance. Most insurance companies have reinsurance in order to protect their solvency and transfer a portion of their liability to the reinsurer. The answer is fourfold.

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Nonprofit Financial Statements: An Overview + Top Insights

Pamela Grow

Insights to glean from this statement When you compare your nonprofit statement of activities with your budget, the line items in both the revenue and expenses sections should match up. So, the first insight that the statement of activities can show is whether your organization is on track to stick to your prepared budget for the year.

Liability 147
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Budget Planning for Nonprofits: Ensuring a Successful Fundraiser

GiveSmart

If you’re planning a fundraiser, you’ll need a good budget. A fundraising budget plan is essential to maximizing your profit margins and collecting more funds for your cause. Large, lavish in-person events will naturally need bigger budgets than intimate ones or virtual or hybrid events.

Budget 52