In our effort to get a Tax Exempt status from the State of Colorado I am learning how to make Financial Accounting Documents for Nonprofits. Bench.CO had an informative overview of what it looks like to do accounting within a nonprofit.
Financial Statements for Nonprofits
The application (DR 0715) has a requirement for this accounting, thus it is a priority to gain the tax exemption “98 Number”.
Statement of Financial Position, similar to a balance sheet, but the net assets is what the final statement is.
Statement of Activities, aka Income Statement, in the nonprofit version, the income statement would tell us net profit, the Statement of Activities tells us changes in Net Assets.
Statement of Cash Flows: I take the Statement of Activities value and add that to the Cash Flow, which makes our August
Callout to using services like Guidestar.org—can tell you a lot about its financial state from Bench.
I also reviewed the information at: