ANAFP Guide to Understanding Nonprofit Financial Statements

Hosted by the Association of Nonprofit Accountants and Finance Professionals.

“Everyone working in nonprofit accounting and finance should have a strong grasp of reading and understanding nonprofit financial statements. In addition, nonprofit Board of Directors should also familiarize themselves with the unique way in which nonprofits present their financials. Although most individuals have a general understanding of accounting and the accounting principles, it’s interesting to note that most of what is learned in schools, especially in accounting courses, is generally geared towards for-profit companies, and, as you will see, the way in which nonprofits present their financial statements is a bit unique.

“In nonprofit accounting, there are four required financial statements that organizations must produce, and we will touch on each of these in this guide. The four required financial statements are: Statement of Financial Position, Statement of Activities, Statement of Cash Flows, and Statement of Functional Expenses.”

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On October 8, 2025, Join Us for a National Town Hall on the Financial State of the Nonprofit Sector

Nonprofit GPS is a new, action-based community designed to help nonprofits navigate today’s disrupted revenue landscape. Built in consultation with organizations nationwide, it focuses on the real financial challenges nonprofits face — business model risks, capital management, budgeting, governance, and more. Together, we’ll share practical strategies and highlight bright spots of practice that strengthen missions, even in the most disruptive times.

At this event you will hear: an analysis of the current economic landscape for nonprofits and the implications for practice; what array of critical new resources will be offered by Nonprofit GPS over the next three months and beyond; and how to become involved as a practice leader in this community.

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