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Financial Statements

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

  • a statement of financial position or the balance sheet;
  • a statement of operations and changes in fund balances or the income statement;
  • a statement of cash flows;
  • notes to the financial statements;
  • an auditor’s report.

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