Nonprofit Organization Cash Flow Statement Template in Word, PDF, Google Docs Download

Get our FREE guide to nonprofit financial reports, featuring illustrations, annotations, and insights to help you better understand your organization’s finances. Get our FREE GUIDE to nonprofit nonprofit statement of cash flows financial reports, featuring illustrations, annotations, and insights to help you better understand your organization’s finances. We recommend discussing the takeaways from your nonprofit statement of cash flows with a professional nonprofit accountant. Net assets are the residual interest in the nonprofit’s assets after deducting liabilities. They are typically categorized into unrestricted, temporarily restricted, and permanently restricted net assets.

• If you do not use real-time, comprehensive software, like Sage Intacct, or if the software you use does not create an SCF, then you may choose to make a statement of cash flows using a template.
• For nonprofits, they are essential in ensuring that the organization can sustain its mission and meet its obligations.
• Our use of the terms “our firm” and “we” and “us” and terms of similar import, denote the alternative practice structure conducted by Smith & Howard PC and Smith & Howard Advisory LLC.
• Simply stated, a decrease in accounts receivable means there was an increase in cash, so you add this value back in.
• The receipt of these funds are not reported on the statement of actives, but instead, are reported as a liability on the statement of financial position.
• When you think of financial statements, the balance sheet or income statement typically come to mind.

Applications of the Nonprofit Statement of Cash Flows

“Smith & Howard” is the brand name under which Smith & Howard PC and Smith & Howard Advisory LLC provide professional services. Smith & Howard PC and Smith & Howard Advisory LLC, practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Smith & Howard PC is a licensed independent CPA firm that provides attest services to its clients, and Smith & Howard Advisory LLC and its subsidiary entities provide tax and business consulting services to their clients. The entities falling under the Smith & Howard brand are independently owned and are not liable for the services provided by any other entity providing services under the Smith & Howard brand. Our use of the terms “our firm” and “we” and “us” and terms of similar import, denote the alternative practice structure conducted by Smith & Howard PC and Smith & Howard Advisory LLC.

• Consider the section titled “Cash Flows From Operating Expenses.” In this example, you can see that the cash received from contracts and contributions add up to $300,000.
• When a board member asks for a cash flow statement, usually it’s because you’re losing cash.
• The Statement of Activities also includes changes in net assets, which reflect the organization’s financial position at the beginning and end of the reporting period.
• Even though you don’t have to pay federal taxes, almost all nonprofit organizations (the few exceptions are listed here) must file an IRS Form 990 each year.
• Ongoing education in new accounting standards, financial management practices, and compliance requirements is vital.

Additional Resources for Further Reading or Learning

They reveal the strategies https://www.bookstime.com/articles/what-are-consolidated-financial-statements a business employs in managing cash to support its operations, invest in its future, and return value to its shareholders. If you gain $10,000 in grant funding, but spend $12,000 on programming, you’ll end up in the red and slowly deplete your reservoir of resources over time. Your size, your activities, and your funding sources will all determine which reports you need to run your business effectively. External (audited) nonprofit financial statements must follow Generally Accepted Accounting Principles (GAAP) standards. That means must use accrual-basis accounting and record transactions in a specific way.

Encouragement to Regularly Review and Understand the Statement of Cash Flows

Then, our team will analyze this document as well as other resources to identify potential risks, opportunities, and scenarios that could occur. From there, we’ll provide recommendations regarding how to maintain healthy financial management practices at your organization. Once you have a completed statement of cash flows for your nonprofit, it’s time to analyze it and draw conclusions that your organization can leverage for better financial management in the future. A listing of the accounts available in the accounting system in which to record entries.

Understanding the financial health of a nonprofit organization requires a comprehensive look at various financial statements, one of which is the Statement of Cash Flows. assets = liabilities + equity This document provides a detailed account of the cash inflows and outflows over a specific period, offering insights into the organization’s liquidity and operational efficiency. In conclusion, cash flow statements are more than just financial documents—they are reflections of an organization’s priorities, operational strategies, and financial health. Whether for a nonprofit or a for-profit, understanding the nuances of these statements is essential for anyone involved in the financial aspects of organizational management, investment, and oversight. This knowledge not only enhances transparency and accountability but also supports strategic planning and informed decision-making across economic sectors. This portion of financial reporting is essential for communicating to stakeholders how effectively the organization sustains its activities and funds its future initiatives.

This section reflects the nonprofit’s ability to secure funding for large projects and its effectiveness in managing long-term financial commitments, which are crucial for sustaining its operations and expanding its impact. YPTC is not a CPA firm, and provides no attestation services with regard to financial reports. Between fundraising, marketing, and keeping your programs afloat, your nonprofit team likely collects a variety of financial data. This information is crucial in making informed decisions about resource allocation and setting your organization up to prosper for years to come. With accurate tracking of financial information, you can see how money is used at your organization over time.