05. Financial Information

5.1 Statement of Revenue
5.2 Statement of Function Expenses
5.3 Balance Sheet
5.4 Reconciliation of Net Assets
5.5 Audited Financial Statement (if available)
5.6 Key Finan­cial Ratios

Form 990 contains basic financial information. In Part VII, the Statement of Revenue, Part IX, Statement of Functional Expenses, Part X, Balance Sheet, Part XI Reconciliation of Net Assets, and Part XII, Financial Statements and Reporting.  Some states require that nonprofits also include an audited financial statement as part of their 990, which is a more comprehensive financial document.

Candidthe National Center for Charitable Statistics (NCCS), and the Economic Research Institute all provide access to Form 990 as well as summary information on nonprofit organizations. Also check the New York Charities Bureau.

In addi­tion to reviewing the finan­cial state­ments, finan­cial ana­lysts uti­lize finan­cial ratios. This allows them to track the per­for­mance of a nonprofit 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.

A number of organizations rate nonprofits using basic financial information.  This includes CharityWatch, Charity Navigator and the Better Business Bureau’s Wise Giving Alliance.