What it is: This is the nonprofit equivalent of a for-profit company’s income statement or profit and loss (P&L) statement. It reports the organization’s financial performance over a period of time (e.g., for the year ended December 31, 2024).
What it shows: It details the organization’s revenue and expenses, ultimately showing the change in net assets from the beginning to the end of the reporting period.
Key feature: It presents revenue and expenses based on the two categories of net assets (with and without donor restrictions). This allows you to see not just how much money was raised and spent, but how much of it was flexible versus restricted.