article thumbnail

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
article thumbnail

Do You Have to Pay Taxes on Grant Money?

GrantNews

By staying informed and seeking professional guidance when needed, you can effectively manage your finances and make the most of grant opportunities without running into unexpected tax issues. Understanding how grants impact your taxes is crucial to managing finances effectively and avoiding unexpected tax issues.

Grant 124
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Nonprofit Financial Statements: An Overview + Top Insights

Pamela Grow

Essentially, it shows a snapshot of your organization’s annual financial health by comparing assets and liabilities. Liabilities. These appear on the statement in order of due date, with short-term investments listed above long-term liabilities. Net assets.

Liability 147
article thumbnail

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
article thumbnail

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
article thumbnail

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? Read on and explore the role of the finance committee with GrantWriterTeam. Why is it so vital to an organization’s success?

Finance 70
article thumbnail

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.