Accounting
Financial Management
Statement of Activities: How Nonprofits Prepare It, With a Template
Last updated: October 8, 2026 · Independent guide · We do not sell rankings or coverage.
A statement of activities is the nonprofit income statement: it reports revenue, support, gains, expenses and releases from restriction for a period, and it ends with the change in each class of net assets. Under ASC 958, as amended by ASU 2016-14, you must show the change in net assets without donor restrictions, the change in net assets with donor restrictions and the change in total net assets on its face. You prepare it by running revenue and expense balances from your ledger through a restriction dimension, posting releases as a reclassification between the two classes, and tying the ending balances to your statement of financial position.
How to use this template
The page has two tables. Table 1 is the statement itself in the common columnar layout, with illustrative figures so you can see how the columns, the release line and the totals behave. Table 2 is a mapping workpaper that tells you where each line comes from in your ledger and which net asset class it can land in. Copy both into a spreadsheet, replace the line items and program names with your own, and add a prior-year column to the right if your board or auditor wants comparatives. Feed every row from your trial balance by formula.
The statement of activities template
Table 1: Statement of activities for the year ended June 30 (illustration). The organization and every figure below are invented for this example. They are not benchmarks.
| Line item | Without donor restrictions | With donor restrictions | Total |
|---|---|---|---|
| Revenue, support and other | |||
| Contributions of cash and other financial assets | $1,150,000 | $640,000 | $1,790,000 |
| Contributed nonfinancial assets | $85,000 | $0 | $85,000 |
| Government and foundation grants | $210,000 | $300,000 | $510,000 |
| Special event revenue | $120,000 | $0 | $120,000 |
| Less: cost of direct benefits to donors | ($35,000) | $0 | ($35,000) |
| Program service fees | $260,000 | $0 | $260,000 |
| Investment return, net | $42,000 | $28,000 | $70,000 |
| Other income | $8,000 | $0 | $8,000 |
| Net assets released from restrictions | $520,000 | ($520,000) | $0 |
| Total revenue, support and other | $2,360,000 | $448,000 | $2,808,000 |
| Expenses | |||
| Program services: Youth tutoring | $980,000 | $0 | $980,000 |
| Program services: Family support | $640,000 | $0 | $640,000 |
| Total program services | $1,620,000 | $0 | $1,620,000 |
| Supporting services: Management and general | $330,000 | $0 | $330,000 |
| Supporting services: Fundraising | $210,000 | $0 | $210,000 |
| Total supporting services | $540,000 | $0 | $540,000 |
| Total expenses | $2,160,000 | $0 | $2,160,000 |
| Change in net assets | $200,000 | $448,000 | $648,000 |
| Net assets, beginning of year | $1,900,000 | $1,250,000 | $3,150,000 |
| Net assets, end of year | $2,100,000 | $1,698,000 | $3,798,000 |
Table 2: Mapping workpaper. Use one row per statement line. The “Check” column is the test you run before the statement goes to anyone.
| Statement line | Ledger source (your accounts) | Net asset class rule | Check |
|---|---|---|---|
| Contributions of cash and financial assets | Individual, corporate and foundation gift accounts; pledge revenue | Either class, from the restriction code on the gift | Agrees to the donor system gift total by restriction |
| Contributed nonfinancial assets | In-kind goods, services and use of facilities | Either class | Shown on its own line, never inside cash contributions |
| Grants | Grant revenue accounts by award | Contribution grants: either class. Exchange contracts: without restrictions | Conditional awards excluded until the barrier is met |
| Special events | Ticket, sponsorship and auction revenue; direct benefit costs | Usually without restrictions | Gross revenue and direct benefit costs both visible |
| Program service fees | Tuition, fees, contract revenue | Without restrictions | Nothing coded to the restricted class |
| Investment return, net | Interest, dividends, realized and unrealized gains, less external and direct internal investment expenses | Follows the fund that owns the investment; endowment earnings restricted until appropriated | Agrees to custodian statements; fees netted |
| Net assets released from restrictions | Paired release accounts in each class | Equal and opposite in the two classes | Total column equals zero; agrees to the restriction roll-forward |
| Expenses by program and supporting function | All expense accounts, by function code | Without restrictions only | Agrees to the total on your functional expense analysis |
| Net assets, end of year | Net asset equity accounts plus current-year change | Each class separately | Agrees to the statement of financial position by class |
Walking through each part of the template
Columns and required totals
ASC 958-220-45-1 requires the statement to display, at a minimum, the change in net assets and the change in net assets with and without donor restrictions, and to focus on the entity as a whole (PwC Viewpoint, no date shown). The standard does not prescribe one format. PwC notes that the illustrations in ASC 958-205-55-10 through 55-17 are examples, and that other arrangements and subtotals, such as operating and nonoperating sections, are permitted. Table 1 uses the columnar layout so readers see both classes and the total side by side.
Revenue and support lines
Revenues are reported as increases in net assets without donor restrictions unless a donor restriction limits their use (PwC Viewpoint). Since ASU 2020-07, you must present contributed nonfinancial assets as a separate line item, apart from contributions of cash and other financial assets, for annual periods beginning after June 15, 2021 (FASB ASU 2020-07, September 2020). Split grants by type in your ledger: a conditional grant is not revenue until its barrier is met, and an exchange contract is earned revenue without donor restrictions.
Special events
Marcum describes three acceptable presentations: deduct the cost of direct benefits to donors from gross event revenue, show gross revenue with the direct benefit costs among expenses, or split the payment into its contribution and exchange portions. Reporting only the net amount is acceptable only when the event is incidental to your operations (Marcum, no date shown). Table 1 uses the first option.
Investment return
ASU 2016-14 requires investment return to be reported net of external and direct internal investment expenses, and it removed the requirement to disclose the netted expenses (FASB ASU 2016-14, August 2016). You may show one net line or break it out by source (Withum, August 30, 2016). Return on donor-restricted endowment funds sits in the with-donor-restrictions column until your board appropriates it.
Net assets released from restrictions
When a purpose is met or a time period passes, the restriction expires and the amount is reclassified from the restricted class to the class without donor restrictions (FASB ASU 2016-14; PwC Viewpoint). On the statement, that is one line with a positive figure in the first column and the same negative figure in the second, so the Total column shows zero. The release rules for purpose, time and capital gifts, and the journal entries behind this line, are covered in our guide to restricted funds accounting.
Expenses
Expenses reduce net assets without donor restrictions only (PwC Viewpoint), which is why the restricted column in Table 1 shows $0 for every expense line. ASU 2016-14 requires an analysis of expenses by both nature and function in one location: the face of this statement, a separate statement or the notes (FASB ASU 2016-14). Table 1 shows expenses by function, with each program in its own row, and leaves the nature-by-function grid to a separate statement. Our statement of functional expenses template covers that grid and the Form 990 Part IX mapping. Its total must equal total expenses here.
Optional operating measure
You do not have to present an operating subtotal. If you do, ASC 958-220-45-10 requires it to appear in a statement that also reports the change in net assets without donor restrictions, and ASC 958-220-45-12 requires a note describing the measure or the items excluded from it when that is not clear from the face of the statement (EisnerAmper, January 10, 2020). Define the rule once and apply it every period.
Net assets and the tie-out
Ending net assets for each class must equal the balances by class on your statement of financial position. A difference usually means a transaction has no restriction code or a release posted to only one side.
Common mistakes
- Expenses in the restricted column. If your report shows expense in the with-donor-restrictions column, an expense transaction carries a restricted code. Recode the expense to without donor restrictions and post the release instead.
- A release line that does not net to zero. This means one side of the release was posted, or the two sides went to different periods. Post releases as a single balanced entry.
- Gross investment fees. Showing adviser fees as operating expenses overstates revenue and expenses. Net them against return.
- In-kind gifts inside cash contributions. ASU 2020-07 requires a separate line. Keep separate revenue accounts for them.
- Board-designated funds in the restricted column. Board designations stay in net assets without donor restrictions. Report them as a subcategory or in the notes.
- No reconciliation to Form 990. If you answer yes on Form 990 Part IV line 12a, Schedule D Parts XI and XII require you to reconcile revenue and expenses on your audited statements to the return (IRS Instructions for Schedule D, page last updated April 30, 2026). Special event costs and netted investment expenses are typical reconciling items, so keep the list as you close the year.
When to move from a spreadsheet to software
A spreadsheet fed from a trial balance export works for a small organization with a few restricted gifts and an annual audit. Move the statement into your accounting system when the board wants it monthly or when releases are calculated by hand. Fund accounting systems produce it the same way: a required restriction dimension on every transaction and a report that uses that dimension for its columns. Our comparison of nonprofit accounting software covers pricing and fit.
Sage Intacct. The Nonprofit QuickStart includes a “Statement of activities: 958 format” report with Without restrictions and With restrictions columns. It depends on a Restriction dimension with two structures, and Sage says the 958 format requires a Board designated value in the without-restrictions structure even if you have no board-designated funds (Sage Intacct help, last modified October 1, 2026). Velixo, which sells Excel reporting for Sage Intacct, publishes a GAAP-aligned statement of activities template that flags when ending net assets do not equal beginning net assets plus the change (Velixo, version 1.1, August 5, 2025).
Oracle NetSuite. NetSuite’s NFP reports bundle includes a Statement of Activity and a Grant Statement of Activity (Oracle NetSuite help, no date shown). RSM, a NetSuite partner, says the native statements rely on a Restriction segment with two default values, and that adding custom restriction values such as Board Designated requires copying and editing reports, without which the statement of financial position does not balance (RSM, May 2, 2025).
QuickBooks Online. Choosing Nonprofit organization (Form 990) as the tax form under Company type adds nonprofit reports such as the Statement of Activity, though Intuit says some labels, such as the Profit and Loss tile, may not change (Intuit, updated August 5, 2026). Intuit’s article does not describe columns by net asset class. You can track restrictions with classes, which are available only on Plus (40 classes and locations combined) and Advanced (Intuit, updated August 5, 2026), and post releases by journal entry. Our list of QuickBooks alternatives for nonprofits covers when to move.
Blackbaud Financial Edge and Aplos. Blackbaud’s Financial Edge help describes its Statement of Activities report as a statement you can use to produce an FAS 117 report, referring to the standard that ASU 2016-14 replaced, so confirm the two-class layout with your partner before relying on it (Blackbaud, no date shown). Aplos, which sells fund accounting software, says fund accounting systems keep donor-restricted funds separate and generate the statement, and offers a free statement of activities template (Aplos, updated September 26, 2025).
How we researched this
We read the FASB’s ASU 2016-14 and ASU 2020-07, PwC’s Viewpoint guide to the not-for-profit core model, and guidance from Withum, EisnerAmper and Marcum, plus the IRS Schedule D instructions. We reviewed the pages that rank for this term from Sage, Aplos, AccountingTools and SuperfastCPA, which define the statement but give little on releases, investment return, the optional operating measure or tie-outs. We checked each software claim against vendor or partner documentation on October 8, 2026, and we identify vendors and partners that sell the products discussed. All figures in Table 1 are an illustration.
Related guides
- Pledge Management Software for Nonprofits (2026 Guide)
- Church Fund Accounting Software: Requirements and Options
- De Minimis Indirect Cost Rate (15%): Nonprofit Setup Guide
Frequently asked questions
Is the statement of activities the same as an income statement?
It plays the same role, but it reports by net asset class and ends with the change in net assets instead of net income. It also includes releases from restriction, which have no equivalent in business reporting.
Why does the total column show zero for releases?
A release moves an amount from net assets with donor restrictions to net assets without donor restrictions. It is a reclassification, not new revenue, so the two columns offset and total net assets do not change. A nonzero total means the release was posted to only one class.
Do expenses need to be shown by function on the statement of activities?
Not necessarily on its face. ASU 2016-14 requires an analysis of expenses by nature and function in one place, which can be the face of this statement, a separate statement or the notes. Many organizations show functional totals here and the full grid in a separate statement.
Do I have to show an operating income line?
No. An operating measure is optional. If you present one, it must sit in a statement that also reports the change in net assets without donor restrictions, and you must explain what is excluded from operations when that is not clear from the statement.
Can QuickBooks produce a GAAP statement of activities?
QuickBooks Online adds a Statement of Activity report when you set the tax form to a nonprofit form, but Intuit does not document a layout with columns by net asset class. You can approximate the layout with classes on Plus or Advanced and finish it in a spreadsheet, or move to a fund accounting system.
Sources
- FASB, ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities, August 2016.
- FASB, ASU 2020-07, Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets, September 2020.
- PwC Viewpoint, Not-for-profit entities guide: core model, no date shown, checked October 8, 2026.
- Withum (Krysten Hambrook), Understanding the New Reporting Requirements for Not-for-Profit Entities, August 30, 2016.
- EisnerAmper (Jimmy Mo), Presentation of an Operating Measure in the Statement of Activities, January 10, 2020.
- Marcum, Accounting for Fundraising Events: A Refresher, no date shown.
- Internal Revenue Service, Instructions for Schedule D (Form 990), page last reviewed or updated April 30, 2026.
- Sage Intacct help (vendor), Financial reports and graphs for nonprofit organizations, last modified October 1, 2026.
- Velixo help (sells reporting add-ons), SI-NFP-RPT2 Statement of Activities (GAAP Aligned), version 1.1, August 5, 2025.
- Oracle NetSuite help (vendor), Non-Profit Specific Reports, no date shown.
- RSM (NetSuite partner, Laura Moyer), NetSuite Nonprofit Financial Statements: Net Assets, May 2, 2025.
- Intuit (vendor), Configure an account for a nonprofit organization in QuickBooks, updated August 5, 2026.
- Intuit (vendor), Learn about usage limits in QuickBooks Online, updated August 5, 2026.
- Blackbaud (vendor), Financial Edge help: Statement of Activities, no date shown.
- Aplos (sells fund accounting software, Alec Hollingsworth), Nonprofit Statement of Activities: Guide and Free Template, updated September 26, 2025.
Sherman Hsieh
Independent analysis of enterprise software — ERP, CRM and more
