Lesson: Non-For Profit Financial Statements

In this lesson, Nick Palazzolo, CPA, takes you through the unique landscape of Non-For-Profit financial statements, explaining their similarities and differences compared to corporate accounting. He dives into the specific statements used within the non-profit sector, including the Statement of Financial Position, Statement of Activities, Statement of Functional Expenses, and the universally familiar Statement of Cash Flows. Nick clarifies how these statements reflect the nature and changes in net assets, inflows and outflows of resources, and cash management with a specific focus on the service efforts and disclosures unique to non-profits. With a focus on practical application, he encourages diving into practice questions to grasp the nuances of classifications, restrictions, and the non-existence of equity in non-profit accounting, as opposed to fund presentations in governmental accounting.