10+ Free Non Profit Financial Statement Templates in Excel

Jawad Ahmad

By

Jawad Ahmad

10+ Free Non Profit Financial Statement Templates in Excel

Table of Contents

Non-profits, same as other organizations, have financial activity. So, as an administrator, you need to know how to make non profit financial statement excel template and what required reports.

Additionally, you should be aware of the accounting process to be compliant with all laws. So, you can ensure you are using the resources available. Finally, present an accurate picture of your organization’s finances to the board.

In short, the most convenient way to keep up with your financial needs is to have a Non-profit financial statement template. 

Related Article: 7+ Free Cash Flow Templates for Construction Projects

10+ Free Non Profit Financial Statement Templates

Understanding the Vocab/Terms of Non Profit Financial Statement

The non-profit organization has its key terms, just like any other community. Although, they share some similarities with for-profit as well.

But the main differences are income sources and their use limits. 
So here are a few non-profit terms that might be confusing. To ease this confusion, here is a short vocabulary of commonly uses terms.

Liabilities

The liabilities of a non-profit organization refer to what the organization owes to others. Typically, they including debts, accounts payable, mortgages, and other obligations to pay.

Revenue sources

Income, which comes from the merchandise or given services, is revenue. In brief, revenue sources will typically include grants, donations, dues for membership, investments, etc.

  • Assets: Usually, assets refer to what is owned by the organization. Such as cash, stock, bonds, and equipment pieces.
  • Net assets: Net assets are the collection of the difference between cumulative income less cumulative expenses.
Project Management 150 Templates Bundle Ad

Types of donor restrictions

Generally, in non-profits, restricted funds refer to the donations meant to use for specific projects or purposes. Sometimes, a donor wants the funds to go to a specific purpose. So, on the basis of restrictions, there are three types of donations: 

Unrestricted donations: Non-profits can use these funds for any purpose.

Temporarily restricted funds: These funds are only for designated purposes.

Permanently restricted funds: Only the interest which comes from these funds can be used on charitable activities.

Financial Report

The Process of Preparing Financial Statement Template Excel

Generally, financial statements are crucial for non-profits to maintain transparency. In this case, the accounting cycle’s proper order ensures that organizations’ financial statements are accurate, consistent, and follow the official accounting standards.

In short, the accounting cycle concept ensures that all the cash passing through your organization is actually “accounted” for. A non-profit should have a non-profit organization’s financial template available to its staff.

So, they can make a statement in the appropriate layout. A non-profit organization needs to prepare the following financial statements:

The Financial Position Statements

The SOP is a snapshot of your organization’s finances. Moreover, it shows the speed at which they convert to cash, listing assets and liabilities.

The Activities Statement

This statement shows the revenue and expenses of a nonprofit organization for a specif period. Also, it shows how a non-profit’s assets change over time.

The Functional and Natural Expenses Statement

As the name shows, this statement lists expenses by function. Such as administrative expenses, program expenses, and fundraising expenses.

Furthermore, this statement also lists expenses by type, such as rent and utilities, salaries, benefits, etc. See the non-profit financial statement template example here.

The Cash Flows Statements

This statement reflects how the cash is coming in and going out in a specific period. Whether in a year, a month, a quarter, or generated on demand for a defined period.

It is another crucial component of a basic non-profit financial statement template excel. The cash flow statement typically has three sections depending on the non-profit’s revenue sources. For most non-profits, this implies net cash from:

Operating activities: such as cash fees from fee-for-free activities or unrestricted funds raising activities.

Investing activities: such as earnings from the sale or purchase of equipment.

Financing activities: such as earning from redeeming bonds etc.

Related Article: Business Feasibility Study Analysis

Non Profit Financial Statement

Accounting Methods for Tracking Funds

Non-profit accounting involves accountability. So, a non-profit should be careful in properly account for funds that it receives from various sources.

Because funding for non-profits comes from foundations or the public, a non-profit should focus on accounting for those funds. To track funds carefully, a non-profit should choose between two accounting types:

Cash Basis Accounting

The cash basis lets non-profits to track their income and expenses when they receive payment physically. This method records expenses at the payment time, so you need to calculate at the year-end.

You can use a cash basis if you run a small business, for instance, a sole trader or partnership and have a turnover of £150,000 or less a year. If your business turnover of £300,000 per year, it will not work for you. Easily make an income statement for your organization by downloading our Income Statement template.

Accrual Basis Accounting

Accrual basic accounting is an accounting method that records revenues and expenses when an invoice is sent out, regardless of when the payment is paid or received.

Understanding Form 990

Individuals and companies need to pay taxes every year using complex forms, but non-profits do not. Because non-profit organizations are exempt from tax, it does not mean that tax season is easy. They still need to file a form 990.

IRS Form 990 is a tax document that tax-exempt organizations file each year to maintain their exempt status. in brief, Form 990 allows the IRS and the public to evaluate non-profits’ financial information and how they work.

Moreover, it collects information about the finances, mission, and programs of tax-exempt organizations. It also gives every non-profit chance to report its accomplishments each year to maintain its tax-exempt status.

You can download the non-profit balance sheet template here.

Related Article: Resource Capacity Planning Template Excel

Non Profit Financial Statement Excel Template

Create a Non Profit Financial Statement in 5 Steps

Here are five easy steps to create a financial statement for your organization:

Step 1:

Firstly, ist all funds you are getting from all revenue sources. This listing will help you manage your expenses in a better way. Use non-profit financial statement templates Xls to list out all the funds.

Step 2:

Manage your outgoing expenses such as salaries, social services, charity, and social awareness to understand better where your revenues are spending and how to reduce them.

Step 3:

Generally, operational costs refer to the amount spent on the products, equipment, and services your organization provides to the public. Our financial statement templates set up your operational costs for each year.

Step 4:

While making a non-profit financial statement template in excel, you must mention all expenses (management expenses, rent, utilities, etc.) and income (gifts, fees, fundraising, etc.). 

Step 5:

Financial statements help organizations to run smoothly, as it gives a better understanding of your finances throughout the year. They are thus resulting in keeping finances under control.

You can download our free financial statement template here.

Related Article: Business KPI Template Excel XLS

Construction Project 50 Templates Bundle

Top 5 Frequently Asked Questions about Non Profit Financial Reports

There are many questions in the FAQ list of 10+ Free Non Profit Financial Statement Templates in Excel However, the top 5 and the basic ones are:

What is a financial statement for a non-profit?

The statement of financial activities shows the non-profit’s income and expenses for a certain period. Also, it shows the changes to an organization’s net assets and expenses during the current year.

Does a non-profit have a balance sheet?

The statement of position acts as the balance sheet of the non-profit.

What are the 5 financial statements?

Those five financial statements include financial position statements, statement of cash flow,statement of change in equity, income statement, and the Noted to financial statements.

What is a balance sheet called for a non-profit?

The “statement of financial position” SOP is balance sheet for non-profits.

Who prepares the financial statements of a company?

A company’s management or head creates the company’s financial statements.

Finally, it was all about the “Free Non-Profit Financial Statement XLS Templates”. Please do share your feedback in the comments section and keep visiting us to learn more about Project Management.

Graphic Resources Credit: Designed by Freepik