Statement of activities

A statement of activities quantifies the revenue and expenses of a nonprofit entity for a reporting period. These revenues and expenses are broken down into unrestricted, temporarily restricted, and permanently restricted classifications, and are divided into separate columns across the statement. The rows in the statement reveal revenues and expenses. Though it is possible to compress these rows down to just a few line items, it is customary to be more expansive in detailing revenues and expenses. For example, line items that may be separately presented for nonprofit revenues can include:

  • Contributions
  • Fundraising events
  • Gain on sale of investments
  • Grants
  • Investment income
  • Member dues
  • Program fees

Line items for expenses may also be separately presented, and in considerable detail. At a minimum, the statement of activities usually includes the following line items:

  • Program expenses. Those expenses incurred in order to deliver specific programs in accordance with the mission of the nonprofit. The presentation may include additional line items to break out the expenses associated with each individual program.
  • Support services expenses. Those expenses used to manage the organization and raise funds.

The net effect of all revenues and expenses is a change in net assets, rather than the profit or loss figure found in the income statement of a for-profit entity.

Related Courses

Nonprofit Accounting