What you need to know
A not-for-profit relies on maintaining good financial standing and transparency to continue receiving donations. A financial statement and annual return is a scorecard to show your organization’s credibility and financial integrity. Therefore, it’s essential to understand what document to file to avoid sanctions.
What is a Not-for-profit Financial Statement?
A not-for-profit financial statement is a document that provides a snapshot of the organization’s financial health. It contains a balance sheet, statement of activities, and cash flow statement.
What are Not-for-profit Annual Returns?
A not-for-profit annual report details the organization’s financial activities throughout a fiscal year. It contains performance highlights, goals, future objectives, and annual financial statements.
What’s the Purpose of Financial Statements & Annual Returns?
Although the financial statement is a part of the annual returns, they both serve similar purposes. Both documents help to represent the organization’s financial position and support the decision of grantors, stockholders, and government agencies to donate to the not-for-profit.
Need help?
Contact MetwallyCPA for a comprehensive and compliant financial statement audit for your business.
