A nonprofit financial statement is an important tool. Every Donor will not commit to funding your project if your charity does not produce this document that records your nonprofit income and expenses.
This Document not only showcases your income and expenses but also helps the donor to understand how, where and when based on the mission of your organization.
Your financial statement should include:
Income: It includes gifts, grants, membership fees, and/or income from fundraising events or investments.
Expenses: Broken into two distinct sections
Overhead expenses and program expenses: Overhead includes management, general, and fundraising expenses (for example, rent and utilities).
Program expenses: Program expenses are those expenses incurred in order to deliver specific programs in accordance with the mission of a nonprofit entity.
Donors want to see a high proportion of expenses being incurred in the program expenses area, which indicates a high level of mission efficiency.
Download the FREE template of a financial statement to get started on your own. You will have access to a pre-formatted spreadsheet that will help you track your nonprofit’s income and expenses.
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