STATEMENT OF FINANCIAL POSITION
A formal statement summarizing the total amount of assets, liabilities, and net equity of a non-profit at one point in time. This is similar to the Balance Sheet Statement of a profit-oriented company. It is measured and arranged according to the organization’s liquidity.
The Statement of Financial Position or the Balance Sheet has three elements, namely, Assets, Liabilities, and Fund Balance or Net worth.
These are the resources controlled by an organization as a result of its past activities from which future economic benefits are expected to flow. Below are the most common assets in a non-profit organization:
Cash and cash equivalents
Cash on hand and demand or security deposits, together with short-term, highly liquid investments readily convertible to a known amount of cash.
Pledges or grants receivables
This represents the amount of money committed to the organization by an outside donor.