How to Read Nonprofit Financial Statements

Rating 4.65 out of 5 (22 ratings in Udemy)

What you'll learn

Explain how the balance sheet, statement of activities, and statement of cash flows are used, what they measure, and why we need three statements.
Differentiate between activities and cash flow
Explain what is the balance sheet equation and why the balance sheet equation is the foundational model for accrual accounting/double entry accounting
Define what are assets, liabilities, and net assets and how assets, liabilities, and …

Rating 4.65 out of 5 (22 ratings in Udemy)

What you'll learn

Explain how the balance sheet, statement of activities, and statement of cash flows are used, what they measure, and why we need three statements.
Differentiate between activities and cash flow
Explain what is the balance sheet equation and why the balance sheet equation is the foundational model for accrual accounting/double entry accounting
Define what are assets, liabilities, and net assets and how assets, liabilities, and net assets relate
Explain how the statement of cash flows and statement of activities link into the balance sheet
Explain the difference between for-profit and nonprofit financial statements
Locate a real nonprofit’s annual report at their website and locate their financial statements within the annual report
Explain who are the four most important stakeholders of a nonprofit (donors, employees, society, vendors)
Explain the give and take of a transaction and how to record both sides of the transaction separately with the four stakeholders
Explain what each line item of the balance sheet means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain which side of the give and take appears on the statement of activities and on the statement of cash flows
Explain why you can’t measure activities with cash and why you need to use accrual accounting (double-entry accounting), not cash accounting
Illustrate how accrual accounting can both record cash and activities using a spreadsheet
Explain what each line item of the statement of activities means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain each important line item for the statement of cash flows means for Bill & Melinda Gates Foundation, American Red Cross, and Wikimedia Foundation
Explain how the format of the operating activities section differs from the other two activities (investing and financing)
Show how 11 common transactions with stakeholders affect the balance sheet, statement of activities, and statement of cash flows
Explain how to find and read IRS Form 990 for nonprofits
Explain how to analyze liquidity, operating, and spending ratios for nonprofits
Test your knowledge by completing 30 multiple-choice question case about the Wikimedia Foundation

Description

If you would like to learn just enough accounting to read nonprofit financial statements, this course is for you. In this course you will learn accounting, not by preparing financial statements, but by reading financial statements, just enough to understand basic terms and concepts, and just enough to size up a nonprofit.

At the end of this course, you’ll be able to read a nonprofit’s financial statements, determine how it is spending its money, and how solvent it is.

This course has seven sections, and here is what we will cover:

Basic financial statement characteristics
Read the financial statements of the Bill and Melinda Gates Foundation
Where the numbers come and why we need three financial statements
Deep dive and read the American Red Cross’ three financial statements.
Test what you’ve learned so far with a 30-question case study about the Wikimedia Foundation
IRS form 990 that nonprofits must file. We’ll find out where you can find compensation information.
Analyze nonprofits using three categories of ratios

Become financially literate! Learn how to read nonprofit financial statements.

Duration 4 Hours 58 Minutes

Paid

Self paced

Beginner Level

English (US)

144

Rating 4.65 out of 5 (22 ratings in Udemy)

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