What is my Statement of Financial Position

The Statement of Financial Position is a non-profit’s Balance Sheet just with a different name. It lists the Assets and Liabilities. Assets would include bank balances, land, building, building improvements, equipment, etc. While Liabilities would include accounts payable, loans, credit card balances, etc.

The Main Difference

A Balance Sheet shows a third section called Equity while a Statement of Financial Position calls this section “Net Assets”. This an important section for most churches because it shows the balances for restricted and unrestricted funds. Most churches have done or will do some sort of building/capital campaign during their life cycle. A church could show a healthy total bank balance total of $750,000 but $600,000 of that could be restricted for certain purposes or projects. It is important to know how much unrestricted cash is available so that you do not run into an operational crunch or do something illegal like using restricted funds for operational purposes. At Guided Insight we’ll keep you on track.