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From Necessary Evil to Mission Fuel: The Strategic Role of Nonprofit Financial Statements

The Charity CFO

Statement of Activities Financial Uses Assessing Revenue Sources : Analyze the various revenue sources of a nonprofit, such as donations, grants, program fees, and investment income. This information is crucial for financial planning, budgeting, and identifying potential areas of revenue growth. accounts payable, loans).

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What to look for in nonprofit accounting financial statements

The Charity CFO

Common revenues for nonprofits include contributions, grants, and investment income. It is required for nonprofits to report expenses based on their functional classification and their natural classification. Functional classifications include program costs, management and general costs, and fundraising costs.