Nonprofit Financial Reporting

Nonprofit financial reporting involves documenting and presenting the financial activities of nonprofit organizations. Unlike for-profits, nonprofits focus on fundraising, grants, and donations to support their mission. Key reports include the Statement of Financial Position, showing assets and liabilities, and the Statement of Activities, detailing revenue and expenses. These reports help stakeholders, like donors and board members, assess financial health and ensure accountability. Nonprofits must adhere to specific accounting standards to promote transparency and maintain public trust, ensuring that funds are used effectively to further their objectives and serve their communities.