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Financial Statement for a Small Nonprofit Organization


The profit margin ratio is problematic because the nonprofit had a slight deficit this year. Questions that need to be answered include: Is this loss a one-time event or has this nonprofit been in this situation before? Is this nonprofit building intergenerational equity over time? What is the trend over five or ten years?

Looking at the degree of diversity in revenues, the analyst can see that this nonprofit organization depends heavily on government contracts; in contrast, contributions are quite a small proportion of the revenues. Certainly, the nonprofit would benefit from a greater emphasis on contributions.

It is possible to conclude that, although the nonprofit does not have immediate concerns about liquidity and solvency, this nonprofit organization needs to stabilize its profit margin and improve its sustainability of resources through revenue diversification. More could be learned through an in-depth examination of the sources and uses of revenue.


Statement of Financial Position (Balance Sheet) for a Small Nonprofit Organization

Current assets      
Cash     $271,671
Temporary cash investments     619,941
Accounts receivable     45,918
Pledges receivable     183,962
Prepaid expenses     168,270
    Total current assets     $1,289,762
Long-term assets      
Investments     $2,033,200
Land, buildings     1,612,164
Other assets     30,751
    Total long-term assets     $3,676,115
    Total assets     $4,965,877
Current liabilities      
Accounts payable     $200,000
Accrued expenses     48,695
Total current liabilities     $248,695
Long-term liabilities      
Mortgage     $381,458
       Total liabilities     $630,153
Net assets      
Unrestricted     $2,509,727
Temporarily restricted     825,997
Permanently restricted     1,000,000
    Total net assets     $4,335,724
    Total liabilities and net assets     $4,965,877



Statement of Activities (Income Statement) for a Small Nonprofit Organization

   Contributions     $565,032
   Grants     1,182,215
   Government contracts     1,459,639
   Fees and membership dues     529,243
   Interest and gains     86,637
      Total revenue     $3,822,766
   Salaries     $2,187,465
   Benefits     475,454
      Total PS     $2,662,919
Chen, G., G., Forsythe, W., D., Weikart, A., L., Williams, W., D. (06/2008). Budget Tools: Financial Methods in the Public Sector, 1st Edition. [Strayer University Bookshelf]. Retrieved from