Financial Statements
This statement shows a nonprofit’s revenues, expenses, and changes in net assets over a period.
What is the Statement of Activities?
This type of budget includes both fixed and variable costs and is used to plan for the upcoming fiscal year.
What is an operating budget?
Board members have this legal duty to act in the best interest of the organization.
What is fiduciary duty?
This IHAA committee focuses on fundraising, donor relations, and securing financial support.
What is the advancement committee?
This type of fund is set aside for unexpected expenses or emergencies.
What is a capital reserve fund?
This term is represented by assets minus liabilities.
What are net assets?
This term refers to the practice of comparing actual financial performance against the budget.
What is budget vs statement of account analysis?
This federal form must be filed annually by most nonprofits to maintain tax-exempt status.
What is IRS Form 990?
This IHAA committee manages budgeting, accounting, and financial reporting.
What is the finance committee?
This percentage of unrestricted revenue is considered healthy for long-term sustainability.
What is 25–50%?
This statement provides a snapshot of assets, liabilities, and net assets at a specific point in time.
What is the Statement of Financial Position?
A nonprofit should ideally have this many months of operating expenses in reserve.
What is 3 to 6 months of operating expenses?
This law prohibits nonprofits from using charitable assets for personal gain.
What is the duty of loyalty?
Development tracks donor intent; finance ensures this is honored through this type of accounting.
What is restricted fund tracking?
This practice involves regular review of financial statements by the board.
What is a financial statement review?
This financial component represents the total value of what the organization owns.
What are assets?
This financial practice ensures that restricted funds are only used for their intended purpose.
What is fund accounting?
This term refers to the board’s responsibility to ensure financial transparency and prevent misuse of funds.
What is financial oversight?
This strategic document outlines how fundraising goals align with financial needs and programmatic impact.
What is a fundraising strategy or development plan?
This term refers to the process of evaluating financial risks and planning mitigation strategies.
What is financial risk assessment?