We now take a quick look at the not-for-profit counterpart to the Income Statement, the Statement of Activities. This statement gives the flows of financial value into and out of the not-for-profit. But given its more broad objectives, a not-for-profit’s Statement of Activities is not focused on getting a “bottom line” net income figure. Here is Yale’s Statement of Activities:
We will make a few observations about this statement and leave it at that. First, note that this statement is focused on the change in net assets for any reason, not just operational ones. There is a separation of operating and non-operating activities, but the statement has both things on it. Second, note the breakdown in columns for net assets with restrictions and net assets without restrictions. As we noted elsewhere on this site, the presence or absence of restrictions on net assets is the main concern in a not-for-profit so this is highlighted.