How to Read Nonprofit Financial Statements

Build Financial Literacy

If you would like to learn just enough accounting to read nonprofit financial statements, this course is for you.  In this course you will learn accounting, not by preparing financial statements,  but by reading financial statements, just enough to understand basic terms and concepts, and just enough to size up a nonprofit.

What you’ll learn

  • How to read NONPROFIT financial statements.

Course Content

  • Introduction –> 1 lecture • 6min.
  • Section 1 – Read Basic Nonprofit Financial Statements –> 4 lectures • 46min.
  • Section 2 – Quick Look: Read Financial Statements of Gates Foundation –> 5 lectures • 59min.
  • Section 3 – Where the Numbers Come From: Accrual /Nonprofit Accounting –> 3 lectures • 41min.
  • Section 4 – Deep Dive: Read Financial Statements of Red Cross –> 3 lectures • 46min.
  • Section 5 -Test What You Have Learned: Wikimedia Foundation Case –> 1 lecture • 3min.
  • Section 6 – IRS Form 990 –> 3 lectures • 17min.
  • Section 7 – How to Analyze a Nonprofit –> 6 lectures • 43min.

How to Read Nonprofit Financial Statements

Requirements

  • No course requirements or prerequisites. This course is for those with little financial knowledge.

If you would like to learn just enough accounting to read nonprofit financial statements, this course is for you.  In this course you will learn accounting, not by preparing financial statements,  but by reading financial statements, just enough to understand basic terms and concepts, and just enough to size up a nonprofit.

At the end of this course, you’ll be able to read a nonprofit’s financial statements, determine how it is spending its money, and how solvent it is.

This course has seven sections, and here is what we will cover:

  • Basic financial statement characteristics
  • Read the financial statements of the Bill and Melinda Gates Foundation
  • Where the numbers come and why we need three financial statements
  • Deep dive and read the American Red Cross’ three financial statements.
  • Test what you’ve learned so far with a 30-question case study about the Wikimedia Foundation
  • IRS form 990 that nonprofits must file. We’ll find out where you can find compensation information.
  • Analyze nonprofits using three categories of ratios

Become financially literate!  Learn how to read nonprofit financial statements.