Detailed Examples of Annual Financial Statements for Non-Profits
Non-profit organizations play a crucial role in society by serving the community and advancing various causes. To maintain transparency and accountability, non-profits are required to prepare annual financial statements that provide an overview of their financial activities. Understanding these financial statements is essential for donors, stakeholders, and the general public to assess the organization’s financial health. Here are detailed examples of common annual financial statements for non-profits:
1. Balance Sheet
The balance sheet, also known as the statement of financial position, provides a snapshot of the organization’s financial position at a specific point in time. It includes assets (such as cash, investments, and property), liabilities (such as loans and accounts payable), and net assets (the difference between assets and liabilities). The balance sheet demonstrates the organization’s financial solvency and shows how its assets are funded.
2. Income Statement
The income statement, also known as the statement of activities, shows the …
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