For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. And, as always, for additional tips, Candid always has great free fundraising resources. By following this structured approach, your organization can effectively communicate how you plan to create change. You, and your fundraising team, can do this!

Revenue with donor restrictions refers to any funds that donors have designated to specific initiatives, which the nonprofit can’t use as freely. It is like an income statement for for-profit businesses but is tailored to the unique needs and structure of nonprofits. Nonprofit financial statements are useful to donors and contributors to show that your nonprofit has efficiently allocated resources. A nonprofit statement of activities example will have a heading, body, and bottom line. The Statement of Activities (SOA) is the correct nonprofit term for the report we may commonly have called the income statement, budget report, profit & loss, income and expense report, etc. The following is an example of a nonprofit’s statement of activities.

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Functional expenses indicate what activity the expense was incurred. Natural expenses include things like utilities, rent, office supplies, and salary expenses. It’s important to pay attention to how expenses are classified.

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Conversely, if a project does well, the organization can invest more in it and apply the insights to other projects. All firms must closely monitor their financial performance in order to make wise judgments. Definition of statement noun from turbotax® premier cd the Oxford Advanced Learner’s Dictionary “West Bromwich Albion have today parted company with men’s first team head coach Ryan Mason,” said a club statement issued on Tuesday.

If that’s the case, your stakeholders (donors, grantors and regulators) will appreciate being able to see how each of those sources contributes to the mission. Nonprofit expenses also tend to vary according to each program’s purpose. Find out what it takes for nonprofit finance teams to not only survive but thrive with our Ebook survival guide. Here, we explain its examples, template, and comparisons with income statement. The expenses, revenues, and changes in net assets help the management achieve important objectives. Consequently, the increase in net assets of $22,500 is derived after deducting both revenues and expenses.

Why Should you Distinguish Between Restricted and Unrestricted Revenue in the Statement of Activities?

In this Year in Review, we highlight important takeaways for business leaders and in-house counsel from the Enforcement Division’s activities in 2025 and emerging SEC enforcement practices and priorities under the leadership of Chairman Paul Atkins and Enforcement Director Judge Margaret Ryan. Or, one person could be responsible for handling fundraising cash, while another takes charge of bank statements. Are you drawing most of your revenue from a shrinking pool of donors? There’s also the “big picture” to consider when you take into account multiple statements of activities. However, not all surpluses need to be spent— a prudent nonprofit can save them away for the proverbial rainy day. These should also be compared to revenue – if high amounts of money are being put into fundraising, with minimal returns, a different strategy may be in order.

The organization can adjust its activities to succeed in its ventures. The nonprofit sector is no exception to this rule. It demonstrates how the funds are used to achieve the organization’s goals.

• This allows you to mitigate risks and seize opportunities, redirecting funds to the initiatives that most effectively advance your mission.
• Websites like GuideStar will also use this report to share how your organization uses revenue.
• “On behalf of the Saugus Cafe staff and ownership, we want to extend our deepest gratitude to our community for the incredible support you have shown us throughout the years,” read the statement.
• A Statement of Activities details financial performance on nonprofit organizations throughout a fiscal year.
• Receive expert tips, financial guidance, and real-world advice—straight delivered to your inbox.
• It’s essential they understand how the IRS prefers statements to be prepared—the IRS won’t accept forms without all the proper information.

He stated that if the SEC “rewards the staff only for bringing enforcement actions, then we have discouraged the staff from determining not to recommend an enforcement action . In addition, while the Division’s traditional approach has been to assess performance based on the number of enforcement actions initiated and amount of monetary sanctions imposed in a fiscal year, Chairman Atkins appears poised to realign the incentive structure for Division staff. In addition, in April 2025, the SEC told staff that it was implementing a targeted reorganization of the Enforcement Division to restructure management and reporting across the Division. Moreover, consistent with President Trump’s February 2025 Executive Order temporarily pausing enforcement of the Foreign Corrupt Practices Act (FCPA) by the Department of Justice (DOJ), the SEC did not bring any new FCPA enforcement actions in FY 2025. Under Gensler, the Enforcement Division relied heavily on investigative sweeps—i.e., market-wide investigations into numerous market participants for similar misconduct—to bring enforcement actions. Although the overall number of enforcement actions brought in 2025 is not that much lower than in typical years, 93% of those cases were brought before former Chair Gensler stepped down on January 20.

Statement of activities, nonprofit example: Feeding America

The organization performs research and supports democracy, political freedom, and human rights. Expenses, including significant programs, fundraising, administration, and general, total $2,500. In the SOA for the year ended June 30, 2022, the funds received via grants and net assets released from restrictions total $25,000. Statement of Activities of Sunshine Nonprofit Organization for the year ended on June 30, 2022 Let us consider the SOA of Sunshine Nonprofit Organization for the year ended on June 30, 2022. In essence, they help the organization make informed decisions.

Commercially available accounting software offers adjustable templates that you can tailor to the revenue or expense categories that are most relevant to your operation. Of course, not every nonprofit relies so heavily on donated goods or in-kind donations. Total expenses were US$5.177 billion, clearly exceeding our US$5.154 billion total revenue— US$22.8 million over. Failure to file Form 990 on time can result in penalties, and if missed for three consecutive years you will have your nonprofit tax-exempt status revoked. This allows you to mitigate risks and seize opportunities, redirecting funds to the initiatives that most effectively advance your mission.

Statement of Activities (SOA): A Nonprofit’s Income Statement Equivalent

Plus, they show your nonprofit is staying compliant with financial regulations. Through a statement of activities, leadership can determine what programs are working, and where to invest future resources. It is prepared instead of the income statement issued by a for-profit business.

This concise opening links your activities to your mission and the purpose behind your fundraising efforts. When nonprofits and NGOs aim to secure funding, it’s both the big vision that wins over funders AND the tangible, actionable steps that make it clear that you can get there. As a nonprofit professional she has specialized in fundraising, marketing, event planning, volunteer management, and board development. Kristine Ensor is a freelance writer with over a decade of experience working with local and international nonprofits. Nonprofits must follow all donor requests, and these donations must be listed under restricted funds on a Statement of Activities. If you cannot find a nonprofit’s Statement of Activities, you can also ask the organization for a copy.

Well put together statements are also essential for reassuring donors and other interested parties as to the competency of your organization. It’s a good idea to revisit the statement of activities every quarter, or even every month, for an update. Since the statement of activities only needs to be prepared annually for the IRS, it’s tempting to forget about it until tax season comes around.

Your https://tax-tips.org/turbotax-premier-cd/ organization’s change in net assets must finish this report. You should split your expenses by programs, administrative, and fundraising costs. Temporarily restricted funds that must be held for a short period will be unrestricted eventually, but they must be listed under restricted funds until then.

Yes, you read that right, ‘exciting’ and ‘accounting’ in the same sentence! Line items for expenses may also be separately presented, and in considerable detail. Essentials of Nonprofit Fundraising Receive expert tips, financial guidance, and real-world advice—straight delivered to your inbox. If you’re ready for an accounting partner to ease the burden of monthly bookkeeping and accounting, reach out to us for a free consultation. And be the trusted financial partner you can turn to for answers to your questions and expert financial advice.

The fiscal year usually makes sense because it lines up with other key financial documents, making it easier for managers and stakeholders to analyze and compare the numbers. However, the language used in both the title and within the report differs, influencing how they are perceived and used. Next, you add together all expense items, such as salaries, facility costs, supplies, and other operational costs, to get the total expenses line. Learn more about the key factors that are driving the widening skills gap in the construction industry and explore actions your business can take to address the issue. Quality software could be the missing ingredient to make your mission stand out.

On the one hand, the decrease in enforcement actions is likely attributable, at least in part, to the inevitable slowdown that occurs during transition years. This statistic includes 56 enforcement actions against public companies and/or subsidiaries (down 30% from FY 2024). While the SEC has not publicly announced enforcement statistics for FY 2025, a private analysis concluded that the SEC brought 313 standalone enforcement actions, the lowest level of SEC enforcement activity in 10 years—down 27% from FY 2024 (431 cases) and 38% from FY 2023 (501 cases). In addition, given Chairman Atkins’s prior advocacy for clearer, less burdensome rules for digital assets, and consistent with public statements from the Trump Administration, it is expected that the SEC under Chairman Atkins will pursue less aggressive enforcement against crypto companies as compared to the Gensler SEC. In his congressional testimony shortly after he was sworn in as Chairman, Atkins stated that investor protection, specifically “holding accountable those who lie, cheat, and steal,” is “vital” to the SEC’s mission. In his brief tenure as Chairman so far, Atkins has repeatedly called it a “new day at the SEC.” His public statements make clear that the enforcement program under his leadership will prioritize traditional fraud cases.

• For this example, we see the change in net assets between 2021 and 2020 (far right) for operating expenses.
• A for-profit income statement measures profitability by reporting revenues, expenses, and net income for owners.
• The fiscal year usually makes sense because it lines up with other key financial documents, making it easier for managers and stakeholders to analyze and compare the numbers.
• A Nonprofit Statement of Activities is a comprehensive report that gives a clear picture of an organization’s fiscal operations over a given period.
• Restricted Revenue shows funds with donor-placed restrictions on how or when you can spend the money.
• In this post, we’ll explore how to structure and write this crucial section, while keeping the focus on the power of purpose for your fundraising.
• Accumulating surplus revenue allows nonprofits to build a financial cushion, safeguarding them against unforeseen expenses or downturns.

For example, on March 4, 2025, the SEC charged German national Eamma Safi and Singaporean national Zhi Ge with Rule 10b-5 violations for their alleged involvement in an international insider trading ring that generated more than $17.5 million in illegal profits. New insider trading actions brought by the Atkins SEC have generally focused on classic fact patterns involving corporate insiders and market professionals. And in July 2025, following the DOJ’s dismissal of its criminal bribery action against two former executives of Cognizant Technology Solutions based on President Trump’s February 2025 executive order pausing FCPA enforcement, the SEC dismissed its long-running parallel civil suit against those executives. In November 2025, the SEC dismissed with prejudice, “in the exercise of its discretion,” the remainder of its case against software firm SolarWinds, which alleged that SolarWinds made misleading statements about its cybersecurity practices and failed to fully disclose a cyber intrusion; the district court dismissed most of the SEC’s claims in July 2024. Just over one month into the Trump Administration, the SEC dismissed with prejudice its enforcement action against Coinbase—filed during former Chair Gensler’s tenure—which had alleged that the digital currencies sold on Coinbase’s platform constituted unregistered securities.