📊The statement of activities for not-for-profit organizations is similar to an income statement.
💰Revenues, gains, and expenses are recorded in the statement of activities.
🗂️Expenses are classified as program expenses or supporting expenses.
🔓Net asset releases from restrictions occur when donor stipulations are met.
📋The statement of activities provides a comprehensive view of the organization's financial performance.
What is the purpose of the statement of activities?
—The statement of activities provides a summary of revenues, gains, and expenses for a not-for-profit organization, similar to an income statement for a for-profit business.
Are all expenses reported in the same category?
—No, expenses are classified as either program expenses or supporting expenses, depending on their nature and purpose.
What are net asset releases from restrictions?
—Net asset releases from restrictions occur when a donation or fund becomes unrestricted, allowing the organization to use the funds for its intended purpose.
How are revenues and gains recorded in the statement of activities?
—Revenues and gains are recorded separately in the statement of activities, with a breakdown of sources such as contributions, grants, fees, and investment income.
Why is the statement of activities important for not-for-profit organizations?
—The statement of activities provides crucial information about an organization's financial performance and helps stakeholders understand how funds are utilized to support the organization's mission and activities.
00:00The statement of activities for not-for-profit organizations is similar to an income statement.
02:19Revenues, gains, and expenses are reported, with expenses categorized as program or supporting.
05:00Net asset releases from restrictions may occur when donor stipulations are met.
07:13Expenses are classified as program expenses or supporting expenses.
09:22The statement of activities provides a comprehensive view of the organization's financial performance.
