How to Read Nonprofit Financial Statements
Build Financial Literacy
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498
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4.5 hours
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Dec 2020
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What you will learn
Explain how the balance sheet, statement of activities, and statement of cash flows are used, what they measure, and why we need three statements.
Differentiate between activities and cash flow
Explain what is the balance sheet equation and why the balance sheet equation is the foundational model for accrual accounting/double entry accounting
Define what are assets, liabilities, and net assets and how assets, liabilities, and net assets relate
Explain how the statement of cash flows and statement of activities link into the balance sheet
Explain the difference between for-profit and nonprofit financial statements
Locate a real nonprofit’s annual report at their website and locate their financial statements within the annual report
Explain who are the four most important stakeholders of a nonprofit (donors, employees, society, vendors)
Explain the give and take of a transaction and how to record both sides of the transaction separately with the four stakeholders
Explain what each line item of the balance sheet means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain which side of the give and take appears on the statement of activities and on the statement of cash flows
Explain why you can’t measure activities with cash and why you need to use accrual accounting (double-entry accounting), not cash accounting
Illustrate how accrual accounting can both record cash and activities using a spreadsheet
Explain what each line item of the statement of activities means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain each important line item for the statement of cash flows means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain how the format of the operating activities section differs from the other two activities (investing and financing)
Show how 11 common transactions with stakeholders affect the balance sheet, statement of activities, and statement of cash flows
Explain how to find and read IRS Form 990 for nonprofits
Explain how to analyze liquidity, operating, and spending ratios for nonprofits
Test your knowledge by completing 30 multiple-choice question case about the Wikimedia Foundation
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3021652
udemy ID
4/18/2020
course created date
2/2/2021
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