05. Financial Information

5.1 Statement of Financial Position
5.2 Statement of Operations
5.3 Key Financial Ratios

Schedule 6 on the T3010 Return available from the Canada Revenue Agency provides detailed financial information on a charity.  The Statement of Financial Position is equivalent to the Balance Sheet in the private sector, detailing assets and liabilities.  The Statement of Operations is equivalent to the Income Statement in the private sector, providing detailed information on revenue and expenditures.  The T3010 Return provides financial information on only the current year, so it is important to consult previous returns to collect at least 3 years of financial information to examine how the charity’s finances may be changing.

The CRA’s list of Charities – Basic Search and Charity Focus are also great alternative sources for financial information. Their summary information over several years and well as their colorful charts and graphics are very helpful.

In addi­tion to reviewing the finan­cial state­ments, finan­cial ana­lysts uti­lize finan­cial ratios. This allows them to track the per­for­mance of a charity over time and to com­pare it to oth­ers operating in the same sector or indus­try.  If you have no experience reviewing nonprofit financials, go to our Nonprofit Accounting for Union Researchers.