Nonprofits that follow US GAAP report four core financial statements: the statement of financial position (balance sheet), the statement of activities (income statement), the statement of functional expenses, and the statement of cash flows. This free template puts all four in one Excel and Google Sheets workbook, linked with formulas so the totals tie out, with a filled-in example you replace with your own numbers.
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The four nonprofit financial statements at a glance
| Statement | Also called | What it shows |
|---|---|---|
| Statement of financial position | Balance sheet | Assets, liabilities and net assets on one date |
| Statement of activities | Income statement, P&L | Revenue, support and expenses for a period, and the change in net assets |
| Statement of functional expenses | Functional expense report | Each expense by its nature and by program, management and general, or fundraising |
| Statement of cash flows | Cash flow statement | Why cash went up or down: operating, investing and financing activity |
The examples below are for Riverbend Community Food Pantry, a fictional organization, for the fiscal year ended June 30, 2026. They are the same numbers that are in the template, so you can follow every link between statements.
1. Statement of financial position
A snapshot of what the organization owns, owes and has left on the last day of the year. The template has two columns, this year-end and last year-end, because last year's balances become the beginning balances on the other statements. For a deeper walk-through, see the nonprofit balance sheet template.
| Line item | June 30, 2026 | June 30, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 84,250 | 61,900 |
| Accounts receivable, net | 6,400 | 4,800 |
| Grants and contributions receivable, current | 32,000 | 25,000 |
| Prepaid expenses | 3,150 | 2,900 |
| Inventory (including donated goods) | 12,600 | 10,200 |
| Total current assets | 138,400 | 104,800 |
| Noncurrent assets | ||
| Contributions receivable, long-term (net of discount) | 15,000 | 20,000 |
| Investments | 60,000 | 52,000 |
| Property and equipment, net of depreciation | 145,800 | 152,300 |
| Total noncurrent assets | 220,800 | 224,300 |
| TOTAL ASSETS | 359,200 | 329,100 |
| LIABILITIES | ||
| Current liabilities | ||
| Accounts payable | 9,450 | 8,100 |
| Accrued payroll and related liabilities | 7,800 | 6,900 |
| Refundable advances and deferred revenue | 5,000 | - |
| Current portion of notes payable | 6,000 | 6,000 |
| Total current liabilities | 28,250 | 21,000 |
| Long-term liabilities | ||
| Notes payable, less current portion | 54,000 | 60,000 |
| Total long-term liabilities | 54,000 | 60,000 |
| Total liabilities | 82,250 | 81,000 |
| NET ASSETS | ||
| Without donor restrictions | ||
| Undesignated | 158,950 | 148,600 |
| Board-designated (e.g., operating reserve) | 25,000 | 20,000 |
| Total net assets without donor restrictions | 183,950 | 168,600 |
| With donor restrictions | ||
| Restricted for specific purposes | 38,000 | 22,000 |
| Restricted for future periods (time) | 15,000 | 17,500 |
| Perpetual in nature (endowment) | 40,000 | 40,000 |
| Total net assets with donor restrictions | 93,000 | 79,500 |
| Total net assets | 276,950 | 248,100 |
| TOTAL LIABILITIES AND NET ASSETS | 359,200 | 329,100 |
2. Statement of activities
The nonprofit version of an income statement. It shows revenue, support and expenses for the year in two columns, without and with donor restrictions, plus a total. Expenses always reduce net assets without donor restrictions. When restricted money is spent for its purpose, it is "released" and moves from the with-restrictions column to the without-restrictions column, which is why that line nets to zero in the total.
| Line item | Without donor restrictions | With donor restrictions | Total |
|---|---|---|---|
| REVENUE, SUPPORT AND RECLASSIFICATIONS | |||
| Contributions | 182,000 | 69,000 | 251,000 |
| Government grants | 140,000 | - | 140,000 |
| Contributed nonfinancial assets (in-kind) | 96,000 | - | 96,000 |
| Special events, net of direct benefits to donors | 18,500 | - | 18,500 |
| Program service fees | 12,000 | - | 12,000 |
| Investment return, net | 2,450 | 6,000 | 8,450 |
| Net assets released from restrictions | 61,500 | (61,500) | - |
| Total revenue, support and reclassifications | 512,450 | 13,500 | 525,950 |
| EXPENSES | |||
| Program services | 402,600 | 402,600 | |
| Management and general | 58,900 | 58,900 | |
| Fundraising | 35,600 | 35,600 | |
| Total expenses | 497,100 | 497,100 | |
| CHANGE IN NET ASSETS | 15,350 | 13,500 | 28,850 |
| Net assets, beginning of year | 168,600 | 79,500 | 248,100 |
| NET ASSETS, END OF YEAR | 183,950 | 93,000 | 276,950 |
3. Statement of functional expenses
Shows every expense two ways: by nature (salaries, rent, supplies) and by function (program services, management and general, fundraising). FASB requires every nonprofit that follows GAAP to present this analysis somewhere in its financial statements, and Form 990 Part IX asks for the same split. Funders read it to see how much of your spending goes to programs.
| Line item | Program services | Management and general | Fundraising | Total |
|---|---|---|---|---|
| Salaries and wages | 150,000 | 33,000 | 20,000 | 203,000 |
| Payroll taxes and employee benefits | 30,000 | 7,000 | 4,000 | 41,000 |
| Donated food distributed (in-kind) | 93,600 | - | - | 93,600 |
| Food purchases | 62,000 | - | - | 62,000 |
| Occupancy (rent, utilities, maintenance) | 24,000 | 4,000 | 2,000 | 30,000 |
| Professional fees (accounting, legal, consultants) | 3,000 | 8,000 | 1,500 | 12,500 |
| Supplies | 9,000 | 1,500 | 1,000 | 11,500 |
| Insurance | 4,000 | 1,500 | 500 | 6,000 |
| Travel and mileage | 3,500 | 400 | 300 | 4,200 |
| Printing and postage | 2,000 | 200 | 3,800 | 6,000 |
| Interest | 2,500 | 800 | - | 3,300 |
| Depreciation | 9,000 | 1,500 | 500 | 11,000 |
| Other expenses | 10,000 | 1,000 | 2,000 | 13,000 |
| TOTAL EXPENSES | 402,600 | 58,900 | 35,600 | 497,100 |
Shared costs such as rent or the executive director's salary should be allocated across functions on a reasonable basis, such as square footage or time records. Write your allocation method down and use it consistently.
4. Statement of cash flows
Explains why cash went up or down. The template uses the indirect method: start with the change in net assets, add back noncash expenses such as depreciation, adjust for changes in receivables and payables, then add investing and financing activity. A positive change in net assets can come with falling cash, for example when pledges are recorded but not yet paid, and this statement shows that clearly.
| Line item | 2026 |
|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| Change in net assets | 28,850 |
| Adjustments to reconcile change in net assets to net cash from operating activities: | |
| Depreciation | 11,000 |
| Net (gains) losses on investments (enter gains as negative) | (5,000) |
| (Increase) decrease in assets: | |
| Accounts receivable | (1,600) |
| Grants and contributions receivable | (2,000) |
| Prepaid expenses | (250) |
| Inventory | (2,400) |
| Increase (decrease) in liabilities: | |
| Accounts payable | 1,350 |
| Accrued payroll and related liabilities | 900 |
| Refundable advances and deferred revenue | 5,000 |
| Net cash provided by (used in) operating activities | 35,850 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| Purchases of property and equipment, net of disposals | (4,500) |
| Net (purchases) sales of investments | (3,000) |
| Net cash provided by (used in) investing activities | (7,500) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| Net borrowing (repayments) on notes payable | (6,000) |
| Net cash provided by (used in) financing activities | (6,000) |
| NET CHANGE IN CASH | 22,350 |
| Cash and cash equivalents, beginning of year | 61,900 |
| CASH AND CASH EQUIVALENTS, END OF YEAR | 84,250 |
In the template, the investing and financing lines are calculated from balance sheet changes. If you sold equipment or investments, or borrowed and repaid in the same year, replace those formulas with the actual amounts.
How the statements connect
- The change in net assets on the statement of activities ($28,850) equals the change in total net assets on the statement of financial position, from $248,100 last year to $276,950 this year.
- Ending net assets by class on the statement of activities equal the statement of financial position: $183,950 without donor restrictions and $93,000 with donor restrictions.
- Total expenses on the statement of functional expenses ($497,100) equal total expenses on the statement of activities. In the template, the activities statement pulls the program, management and general, and fundraising totals straight from the functional expenses tab.
- Ending cash on the statement of cash flows ($84,250) equals cash on the statement of financial position.
- Depreciation on the statement of functional expenses ($11,000) is added back on the statement of cash flows.
The Checks tab tests each of these links and says OK or DOES NOT TIE, so you find out before the board meeting if something is off.
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Frequently asked questions
What are the four basic financial statements for a nonprofit?
The statement of financial position (assets, liabilities and net assets on one date), the statement of activities (revenue, support and expenses for the year), the statement of functional expenses (expenses by nature and by function) and the statement of cash flows (how cash changed). Audited statements also include notes that explain accounting policies, donor restrictions, liquidity and other details.
What format should nonprofit financial statements follow?
If you follow US GAAP, use the format in FASB ASC 958 as updated by ASU 2016-14: two classes of net assets (with and without donor restrictions), expenses analyzed by both nature and function, and a disclosure about liquidity. This template uses that format. Monthly board reports can be simpler, but they should use the same categories so they reconcile to your year-end statements.
Is the statement of functional expenses required?
Every nonprofit following GAAP must present an analysis of expenses by both nature and function. It can be a separate statement, part of the statement of activities or a note. A separate statement is the most common and the easiest to read.
Where can I see examples of nonprofit financial statements?
Every statement on this page shows a complete example for a fictional food pantry, and the free workbook contains the same example so you can see every formula. For real examples, look for audited financial statements on the websites of organizations similar to yours, or look up their Form 990 filings on ProPublica's Nonprofit Explorer.
What is the difference between a statement of activities and an income statement?
Both show whether you took in more than you spent. The statement of activities also separates results by donor restriction, and it reports a change in net assets rather than net income or profit.
Do I need an accountant to prepare nonprofit financial statements?
You can prepare internal financial statements yourself with this template. If a funder, lender or your state requires a review or an audit, a CPA firm must do that work. Either way, have an accountant check your first set, especially restricted net assets and in-kind contributions.