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The 4 Core Nonprofit Financial Statements & Their Insights

Pamela Grow

Because your organization cant turn a profit by definition, the goal of tracking your finances is to demonstrate to donors, funders, the government, and the community that youre using your funding responsibly to further your mission. Liabilities. Accountability is at the heart of nonprofit accounting. Net assets.

Liability 130
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Do You Have to Pay Taxes on Grant Money?

GrantNews

Grants serve as critical financial aid for individuals and organizations across various sectors, supporting endeavors ranging from education and scientific research to entrepreneurial ventures. But here’s a big question: Do you have to pay taxes on grant money? We also have sample grants for each category.

Grants 124
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Nonprofit Financial Statements: An Overview + Top Insights

Pamela Grow

Your organization may also bring in revenue from fundraising events, service fees, and grants. Essentially, it shows a snapshot of your organization’s annual financial health by comparing assets and liabilities. Liabilities. This section details your nonprofit’s funding sources and how much revenue you bring in from each source.

Liability 147
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Statement of Cash Flows: How Nonprofits Track Inflow and Outflow of Money

Blackbaud

By analyzing cash flows from operating, investing, and financing activities, organizations can identify trends, manage expenses, and make strategic decisions about future initiatives. The Statement of Cash Flows is divided into three sections: Operating Activities, Investing Activities, and Financing Activities.

Finance 96
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Back-to-School Basics with Nonprofit Finance Fundamentals

Just Write Grants

With our digital school bells ringing, it's time to attend a masterclass in nonprofit finance. Balance Sheet : Provides a quick overview of the nonprofit's financial position at a specific point in time, detailing its assets (what it owns), liabilities (what it owes), and equity (the net assets or funds available to the organization).

Finance 52
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Does Your Nonprofit Need a Financial Oversight Committee?

Grant Writer Team

Managing finances can be daunting for many nonprofit professionals, particularly those new to oversight roles within nonprofit organizations. But what exactly does a nonprofit finance committee do? Most importantly, what does this have to do with grant funding? Why is it so vital to an organization’s success?

Finance 70
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How to Create a Nonprofit Chart of Accounts: 3 Steps + Tips

Get Fully Funded

Most COAs are organized into five categories: assets, liability, net assets, revenue, and expense accounts. Liabilities usually start with 2, net assets with 3, revenue with 4, and expenses with 5 and beyond. Then, those accounts are further divided into subcategories. For example, assets usually start with 1.