The financial statements of a charity are used for a number of purposes: managing day-to-day operations, tracking expenses, and reporting to the board and corporate members. They are also used by donors and foundations to assess whether a charity is sufficiently well-run to deserve financial support. Banks and suppliers will often request financial statements when extending credit. It is a good practice to include a copy of your financial statements on your charity’s website.
The main components of a charity’s financial statements include