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Understanding Nonprofit Financial Statements: Definition & Examples

Understanding Nonprofit Financial Statements: Definition & Examples

As with for-profit businesses, non-profit organizations must also account for and detail all their enterprise’s financial components, inflows, outflows, and operations. While a nonprofit’s goals and operating models differ in a few vital respects-specifically profits versus “results,” they still both engage in many of the same activities and have similar commitments to showing the use of funds, documenting overhead, making projections, ensuring compliance, disclosures, transparency, and accountability to shareholders, donors, and more.…
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