Statement of Financial Position
What it is: This is the nonprofit equivalent of a for-profit company’s balance sheet. It’s a snapshot of the organization’s financial health at a single point in time (e.g., as of December 31, 2024).
What it shows: It lists the organization’s assets (what it owns), liabilities (what it owes), and net assets.
Key feature: Unlike a for-profit balance sheet with “equity,” the Statement of Financial Position separates net assets into two categories:
- Net assets without donor restrictions: Funds that the organization’s board can use for any purpose.
- Net assets with donor restrictions: Funds that must be used for a specific purpose or after a specific time, as designated by the donor.