Nonprofit Financial Reporting
Nonprofit Financial Reporting: or many, this is one of the most frightening aspects of running a nonprofit, even scarier than fundraising. But financial reporting, accurately and timely, is utterly key to the strength of your organization, to your ability to acquire funds and board members and to your overall longevity.
We can demystify and de-terrify this important element of your management. Setting up logical books, synchronizing donor acknowledgements and thank you’s, reconciling bank statements and reports, collecting metrics on your program activities are all steps necessary to be in compliance with your corporate and federal laws, as well as providing crucial information for grant applications and other fundraising efforts.
Since few of us are accountants, the often complex financial reporting can be difficult and all to easy to slide to the corner of your desk. A basic and fundamental understanding can go a long way towards making this information accessible and useful.
Five necessary reports:
1. Balance Sheet: a statement of your financial position at the time
2. Profit and Loss Statement: What you brought in, what you spent and where you spent it, and what is left over.
3. Footnotes and explanations, supporting documents
4. Annual and program budgets: What you plan to bring in and how you expect to use it.
5. The Annual Report, a more comprehensive report, including activities and plans.
Click here to access resources and help in navigating this tricky territory like a pro.
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