Understanding the key financial reports is essential for nonprofit organizations to track their financial health and make informed decisions. In this course, we will look at the three main financial reports that nonprofit organizations should be familiar with.

The key financial reports discussed include the Statement of Financial Position (aka the Balance Sheet), the Statement of Activities (aka the Income Statement), the Statement of Cash Flows, and, for a bonus, the Statement of Functional Expenses.

Each statement provides valuable insights into an organization's financial performance, liquidity, and health.

We will also cover budget-to-actuals, including how to build a budget and read the actuals report. We will also discuss some misunderstandings that most nonprofit directors and boards have about the budget and budget-to-actuals.

By the end of this course, you will clearly understand the purpose and importance of each financial report. You will have the confidence to review and interpret the information presented in these reports to make strategic financial decisions for your nonprofit organization.

Key Lesson Concepts:

• Learn how to read and interpret the key financial reports for monitoring a nonprofit organization's economic health.
• Understand your budget, and budget to actuals, and how it does, and does not serve your organization as a stand-alone report.