Most accounting classes teach the use of the Balance Sheet, Income Statement, Statement of Retained Earnings, and Cash Flow Statement. These are all financial statements used in the forprofit sector. This discussion reviews those statements that are used in the nonprofit sector.

The purpose of the nonprofit $-$ to provide a societal benefit $-$ is evident in the presentation of the organization's financial information. In the U$.$S$.,$ the government sees assistance to the nonprofit as appropriate and provides an exemption to various taxes and regulations.

As such, the nonprofit has no need to develop an income statement for tax or profit evaluation but does have a need to assess the funding status of its various activities.

Read$/$review Understanding Non$-$Profit Financial Statements.

In this discussion, review the different financial statements used by nonprofit organizations.

Discuss the content and importance of each statement.

Identify what information might be of primary importance to donors