Statement of Activity for a Church or Nonprofit

The statement of activity, also known as the statement of revenue and expenses, reflects a church’s or nonprofits support and revenue, expenses, and changes in net assets (fund balances) for a certain period of time such as month, quarter, or year.

It shows the church’s or nonprofit’s source of income and how they used their resources. The form of the statement will depend on the type and size of an organization and the accounting method used. However, the statement must show the changes in restricted, temporary restricted, permanently restricted and total net assets.

When preparing a statement of activity using the pure fund accounting method, you will show each of your funds individually in columns.

When preparing this statement using the Statement of Financial Accounting Standards (SFAS) Numbers 116 and 117, you will use the restricted, unrestricted, and permanently restricted headings in your columns.

Both methods are correct.

See explanations and examples of church financial statements and a sample of a chart of accounts in the Basic Church Accounting ebook. Also, learn how to properly record some common church financial transactions in a double entry bookkeeping system.

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