[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"nav-categories":3,"article-for-profit-vs-non-profit-financial-statements-key-differences":70},{"data":4},[5,37,57,64],{"name":6,"slug":7,"categories":8},"Productivity","productivity",[9,13,17,21,25,29,33],{"id":10,"title":11,"slug":12},17,"Branding","branding",{"id":14,"title":15,"slug":16},19,"Marketing","marketing",{"id":18,"title":19,"slug":20},20,"Work","work",{"id":22,"title":23,"slug":24},34,"Community","community",{"id":26,"title":27,"slug":28},21,"For newbies","for-newbies",{"id":30,"title":31,"slug":32},24,"Investment","investment",{"id":34,"title":35,"slug":36},22,"Finance","finance",{"name":38,"slug":39,"categories":40},"Tech","tech",[41,45,49,53],{"id":42,"title":43,"slug":44},28,"Technology","technology",{"id":46,"title":47,"slug":48},32,"Artificial Intelligence","artificial-intelligence",{"id":50,"title":51,"slug":52},26,"Security and protection","security-and-protection",{"id":54,"title":55,"slug":56},31,"YouTube Blog","youtube-blog",{"name":58,"slug":59,"categories":60},"News","news",[61],{"id":62,"title":58,"slug":63},18,"quasanews",{"name":65,"slug":66,"categories":67},"Business","business",[68],{"id":69,"title":65,"slug":66},16,{"post":71,"published_news":96,"popular_news":160,"categories":231},{"title":72,"description":73,"meta_title":72,"meta_description":73,"meta_keywords":72,"text":74,"slug":75,"created_at":76,"publish_at":77,"formatted_created_at":78,"category_id":34,"links":79,"view_type":84,"video_url":85,"views":86,"likes":87,"lang":88,"comments_count":89,"category":90},"For-Profit vs Non-Profit Financial Statements: Key Differences","It is important to have financial statements for any transactions involving money.","\u003Cp>Hello!\u003C/p>\n\n\u003Cp>It is important to have \u003Ca href=\"https://quasa.io/media/financial-statements-for-startups-essential-tools-and-techniques\">financial statements\u003C/a> for any transactions involving money. It is important to have financial statements, regardless of whether you are non-profit or for-profit. A financial statement is a great tool for accounting and accountability. This helps you track your progress year after year. This article aims to contrast non-profit financial statements with those of for-profit organizations.\u003C/p>\n\n\u003Ch3>Revenue\u003C/h3>\n\n\u003Cp>\u003Cpicture class=\"image-align-left\">\u003Csource srcset=\"https://cdn.quasa.io/photos/17/9999-1.webp\" type=\"image/webp\">\u003Cimg alt=\"For-Profit vs Non-Profit Financial Statements: Key Differences\" class=\"image-align-left\" height=\"177\" src=\"https://cdn.quasa.io/photos/17/9999-1.jpeg\" width=\"284\" />\u003C/picture>The “matching principle” governs the revenue-related differences between non-profit and for-profit financial statements. It also applies to financial statements for for-profit organizations. This principle requires that for-profit organizations report both their revenue and associated costs in the same accounting period.\u003C/p>\n\n\u003Cp>If an organization has reported revenue for December, then the cost of goods must be included in the financial statement. Non-profits may be able to make a pledge that will later be redeemed. Consider a situation where a donor has pledged US$2,500 to be paid in four installments over a period of two years, which would amount to US$1,250 annually.\u003C/p>\n\n\u003Cp>The total US$2,500 must be recorded by the non-profit organization in the year that the pledge was made. This is even though the cash has not been received. It must be recorded in your financial statement. When the cash is finally paid, it goes into your account without changing your financial statement.\u003C/p>\n\n\u003Ch3>Taxes\u003C/h3>\n\n\u003Cp>\u003Cpicture class=\"image-align-left\">\u003Csource srcset=\"https://cdn.quasa.io/photos/17/9999-2.webp\" type=\"image/webp\">\u003Cimg alt=\"For-Profit vs Non-Profit Financial Statements: Key Differences\" class=\"image-align-left\" height=\"183\" src=\"https://cdn.quasa.io/photos/17/9999-2.jpeg\" width=\"275\" />\u003C/picture>The tax report is a major difference in the financial statements of non-profit and for-profit organizations. The financial statements of non-profit organizations are expected to reflect their tax returns. However, it is not the case for a for-profit. While non-profits are most commonly known to be exempt from tax, this exemption is only available after certain obligations have been met with the right authorities.\u003C/p>\n\n\u003Cp>However, non-profits may be required to disclose their tax returns in financial statements. The financial statements of non-profit organizations can sometimes be complex. A non-profit’s tax report is often viewed in relation to the issues it was established to address.\u003C/p>\n\n\u003Cp>A non-profit organization that provides disaster relief will not be expected to tax donations for humanitarian causes. If other revenue-generating aspects are implemented, however, the tax will be paid and reported to the organization. One example is a workshop that makes crafts to raise money during the Giving Season.\u003C/p>\n\n\u003Cp>Non-profit organizations must also pay payroll tax to the government. However, employees still have to pay income taxes. These taxes can all be included in a non-profit’s financial statement.\u003C/p>\n\n\u003Ch3>Balance Sheet\u003C/h3>\n\n\u003Cp>\u003Cpicture class=\"image-align-left\">\u003Csource srcset=\"https://cdn.quasa.io/photos/17/9999-3.webp\" type=\"image/webp\">\u003Cimg alt=\"For-Profit vs Non-Profit Financial Statements: Key Differences\" class=\"image-align-left\" height=\"175\" src=\"https://cdn.quasa.io/photos/17/9999-3.jpeg\" width=\"289\" />\u003C/picture>A balance sheet is an example of this variation. While it’s fine for non-profits to refer to it as a balance sheet, they prefer to call it a statement of financial position. Asset distribution to shareholders is another area of differentiation.\u003C/p>\n\n\u003Cp>Non-profits cannot have shareholders, but only board members. Therefore, assets that are retained earnings for shareholders are not shown in the financial statements of non-profit organizations. However, the balance sheet of for-profit organizations does not contain such an asset distribution declaration. However, it is possible to have assets of non-profits reinvested to fulfill its charitable mission in the future (financial).\u003C/p>\n\n\u003Ch4>Statement of Income\u003C/h4>\n\n\u003Cp>Another tool that distinguishes a for-profit from a nonprofit is the income statement. For-profits are known to keep track of all income, revenue, profit, and loss. Non-profits, however, are not required to record income.\u003C/p>\n\n\u003Cp>\u003Cpicture class=\"image-align-left\">\u003Csource srcset=\"https://cdn.quasa.io/photos/17/9999-4.webp\" type=\"image/webp\">\u003Cimg alt=\"For-Profit vs Non-Profit Financial Statements: Key Differences\" class=\"image-align-left\" height=\"183\" src=\"https://cdn.quasa.io/photos/17/9999-4.jpeg\" width=\"275\" />\u003C/picture>Instead, you’ll see the statement of activities for non-profits. This can be reported in a financial statement. This report shows the non-profit’s net assets and the expenses and contributions received for the year. Non-profit organizations can now focus on the future with this tool.\u003C/p>\n\n\u003Ch3>Financial Reporting\u003C/h3>\n\n\u003Cp>Non-profit and for-profit organizations prepare financial statements that are focused on certain attributes. Non-profit organizations care more about accountability than for-profit organizations. However, they are more concerned with profitability. This is evident in the question of restricted or unrestricted funding. Non-profits are not allowed to spend funds on business processes they consider profitable.\u003C/p>\n\n\u003Cp>There are occasions when grantors can decide how and when donations should be spent by non-profit organizations. These situations require that the financial statements reflect undeniable accountability. The non-profit must classify all donations to ensure proper tracking. This will ensure that the organization doesn’t waste funds on things other than the purpose for which it was created.\u003C/p>\n\n\u003Cp>Due to multiple rounds of restricted funding, the financial reporting system for a non-profit may be more complex than that of a for-profit. Given the above, it is fair to state that non-profits cannot always draw a budget around finances. However, for-profit organizations have this option. If restricted funds are involved, funds cannot be just allocated to a cause.\u003C/p>\n\n\u003Cp>\u003Cstrong>Also read:\u003C/strong>\u003C/p>\n\n\u003Cul>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/top-10-most-in-demand-it-tech-skills-in-2025\">Top 10 most in-Demand IT & Tech Skills in 2025\u003C/a>\u003C/li>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/5-things-to-know-about-workplace-injuries\">5 Things to Know About Workplace Injuries\u003C/a>\u003C/li>\n\t\u003Cli>\u003Ca href=\"https://quasa.io/media/how-do-you-convert-your-mobile-phone-into-a-computer\">How do You Convert Your Mobile Phone Into A Computer?\u003C/a>\u003C/li>\n\u003C/ul>\n\n\u003Ch3>In conclusion\u003C/h3>\n\n\u003Cp>\u003Cpicture class=\"image-align-left\">\u003Csource srcset=\"https://cdn.quasa.io/photos/17/9999-5.webp\" type=\"image/webp\">\u003Cimg alt=\"For-Profit vs Non-Profit Financial Statements: Key Differences\" class=\"image-align-left\" height=\"169\" src=\"https://cdn.quasa.io/photos/17/9999-5.jpeg\" width=\"300\" />\u003C/picture>Your financial statements are crucial for sustainability and growth as a manager or administrator of a non-profit. This is especially true if your organization relies on grantors and companies for funding. This statement will help you understand the level of accountability that your organization must follow. You must be able to clearly understand the various ways that you will be held accountable for your non-profit or for-profit organization.\u003C/p>\n\n\u003Cp>This will give you an understanding of the complexities involved in preparing your future non-profit financial statements. You can also be guided to the differences between non-profit and for-profit financial statements.\u003C/p>\n\n\u003Cp>Thank you!\u003Cbr />\nJoin us on social media!\u003Cbr />\nSee you!\u003C/p>","for-profit-vs-non-profit-financial-statements-key-differences","2023-04-19T12:24:03.000000Z","2026-01-21T04:30:00.000000Z","21.01.2026",{"image":80,"image_webp":81,"thumb":82,"thumb_webp":83},"https://cdn.quasa.io/images/news/o1MY4zkA9brex4fhkKV8RhfEVW0xpv59M1MfpsEk.jpg","https://cdn.quasa.io/images/news/o1MY4zkA9brex4fhkKV8RhfEVW0xpv59M1MfpsEk.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/o1MY4zkA9brex4fhkKV8RhfEVW0xpv59M1MfpsEk.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/o1MY4zkA9brex4fhkKV8RhfEVW0xpv59M1MfpsEk.webp","small",null,2084,3,"en",0,{"id":34,"title":35,"slug":36,"meta_title":91,"meta_description":92,"meta_keywords":93,"deleted_at":85,"created_at":94,"updated_at":95,"lang":88},"Quasa Media's Growth Hacking Finance Blog","Trends in financial literacy. Savings and investment options.","Finance, invest, money, rich, financial plan","2021-10-27T19:57:04.000000Z","2024-08-25T15:36:23.000000Z",[97,111,122,134,147],{"title":98,"description":99,"slug":100,"created_at":101,"publish_at":101,"formatted_created_at":102,"category":103,"links":104,"view_type":84,"video_url":85,"views":109,"likes":89,"lang":88,"comments_count":89,"is_pinned":110},"Cloudflare Just Made Email a First-Class Citizen for AI Agents — And Traditional Email Services Are Feeling It","On April 17, 2026, Cloudflare quietly turned a long-standing dream into reality: it moved Email Service into public beta and added full Email Sending alongside the years-old Email Routing.","cloudflare-just-made-email-a-first-class-citizen-for-ai-agents-and-traditional-email-services-are-feeling-it","2026-04-19T18:41:05.000000Z","19.04.2026",{"title":43,"slug":44},{"image":105,"image_webp":106,"thumb":107,"thumb_webp":108},"https://cdn.quasa.io/images/news/BL8rqDdPh380Xfk5TP00aXBFWdOVXI5BUQ1TuSaC.jpg","https://cdn.quasa.io/images/news/BL8rqDdPh380Xfk5TP00aXBFWdOVXI5BUQ1TuSaC.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/BL8rqDdPh380Xfk5TP00aXBFWdOVXI5BUQ1TuSaC.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/BL8rqDdPh380Xfk5TP00aXBFWdOVXI5BUQ1TuSaC.webp",14,false,{"title":112,"description":113,"slug":114,"created_at":115,"publish_at":115,"formatted_created_at":102,"category":116,"links":117,"view_type":84,"video_url":85,"views":54,"likes":89,"lang":88,"comments_count":89,"is_pinned":110},"Mozilla Nails It: Thunderbolt Brings “ChatGPT at Home” to the Enterprise — Without Vendor Lock-In","While OpenAI and Anthropic race to sell their proprietary AI platforms to big corporations, Mozilla’s subsidiary MZLA Technologies has taken a very different route.","mozilla-nails-it-thunderbolt-brings-chatgpt-at-home-to-the-enterprise-without-vendor-lock-in","2026-04-19T15:37:27.000000Z",{"title":58,"slug":63},{"image":118,"image_webp":119,"thumb":120,"thumb_webp":121},"https://cdn.quasa.io/images/news/qaAODXSpJy6qpJc0eO9DQ2Y6ccJR1tlL5i3mN0kV.jpg","https://cdn.quasa.io/images/news/qaAODXSpJy6qpJc0eO9DQ2Y6ccJR1tlL5i3mN0kV.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/qaAODXSpJy6qpJc0eO9DQ2Y6ccJR1tlL5i3mN0kV.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/qaAODXSpJy6qpJc0eO9DQ2Y6ccJR1tlL5i3mN0kV.webp",{"title":123,"description":124,"slug":125,"created_at":126,"publish_at":126,"formatted_created_at":102,"category":127,"links":128,"view_type":84,"video_url":85,"views":133,"likes":89,"lang":88,"comments_count":89,"is_pinned":110},"X Is Finally Cracking Down on Unlabeled Ads — And It’s Personal","For years, X (formerly Twitter) has been a playground for undisclosed promotions, coordinated spam networks, and “native” advertising that masquerades as organic content.","x-is-finally-cracking-down-on-unlabeled-ads-and-it-s-personal","2026-04-19T15:07:48.000000Z",{"title":65,"slug":66},{"image":129,"image_webp":130,"thumb":131,"thumb_webp":132},"https://cdn.quasa.io/images/news/CQJ1gdssFGyJpfhfmRU2X4WT5fk5Boc8APXsjWX6.jpg","https://cdn.quasa.io/images/news/CQJ1gdssFGyJpfhfmRU2X4WT5fk5Boc8APXsjWX6.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/CQJ1gdssFGyJpfhfmRU2X4WT5fk5Boc8APXsjWX6.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/CQJ1gdssFGyJpfhfmRU2X4WT5fk5Boc8APXsjWX6.webp",33,{"title":135,"description":136,"slug":137,"created_at":138,"publish_at":139,"formatted_created_at":102,"category":140,"links":141,"view_type":84,"video_url":85,"views":146,"likes":89,"lang":88,"comments_count":89,"is_pinned":110},"Bitcoin Developers Propose BIP-361: Quantum-Proof Migration That Would Freeze Millions of Legacy Coins","In a move that could reshape the security of Bitcoin’s unspent transaction outputs forever, Bitcoin developers have introduced BIP-361 — officially titled “Post Quantum Migration and Legacy Signature Sunset.”","bitcoin-developers-propose-bip-361-quantum-proof-migration-that-would-freeze-millions-of-legacy-coins","2026-04-17T11:38:06.000000Z","2026-04-19T11:29:00.000000Z",{"title":43,"slug":44},{"image":142,"image_webp":143,"thumb":144,"thumb_webp":145},"https://cdn.quasa.io/images/news/XW07GuAbFLRaVskP2iUsv0witLmM4GwiSlwMPZpp.jpg","https://cdn.quasa.io/images/news/XW07GuAbFLRaVskP2iUsv0witLmM4GwiSlwMPZpp.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/XW07GuAbFLRaVskP2iUsv0witLmM4GwiSlwMPZpp.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/XW07GuAbFLRaVskP2iUsv0witLmM4GwiSlwMPZpp.webp",53,{"title":148,"description":149,"slug":150,"created_at":151,"publish_at":152,"formatted_created_at":102,"category":153,"links":154,"view_type":84,"video_url":85,"views":159,"likes":89,"lang":88,"comments_count":89,"is_pinned":110},"Thomas Peterffy’s Bold Vision for Prediction Markets: Why Interactive Brokers Is Betting Big on “Useful” Bets","In a wide-ranging conversation on Bloomberg’s Odd Lots podcast, Thomas Peterffy — founder, chairman, and CEO of Interactive Brokers (IBKR) — sat down to discuss one of the most intriguing projects in his company’s 50-year history: IBKR ForecastTrader, the brokerage giant’s freshly launched prediction market platform.","thomas-peterffy-s-bold-vision-for-prediction-markets-why-interactive-brokers-is-betting-big-on-useful-bets","2026-04-16T18:39:15.000000Z","2026-04-19T09:31:00.000000Z",{"title":65,"slug":66},{"image":155,"image_webp":156,"thumb":157,"thumb_webp":158},"https://cdn.quasa.io/images/news/48nr7BL364AeGyF1lbFbh13tx14RNr0P2uUnbVe0.jpg","https://cdn.quasa.io/images/news/48nr7BL364AeGyF1lbFbh13tx14RNr0P2uUnbVe0.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/48nr7BL364AeGyF1lbFbh13tx14RNr0P2uUnbVe0.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/48nr7BL364AeGyF1lbFbh13tx14RNr0P2uUnbVe0.webp",64,[161,174,190,202,217],{"title":162,"description":163,"slug":164,"created_at":165,"publish_at":166,"formatted_created_at":167,"category":168,"links":169,"view_type":84,"video_url":85,"views":172,"likes":173,"lang":88,"comments_count":89,"is_pinned":110},"The Anatomy of an Entrepreneur","Entrepreneur is a French word that means an enterpriser. Enterprisers are people who undertake a business or enterprise with the chance of earning profits or suffering from loss.","the-anatomy-of-an-entrepreneur","2021-08-04T15:18:21.000000Z","2025-12-14T06:09:00.000000Z","14.12.2025",{"title":65,"slug":66},{"image":170,"image_webp":85,"thumb":171,"thumb_webp":171},"https://cdn.quasa.io/images/news/mVsXPTMuHZuI7UXCsENgL1Qwp1uSOf7Rz3uVPMfm.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/mVsXPTMuHZuI7UXCsENgL1Qwp1uSOf7Rz3uVPMfm.webp",70829,2,{"title":175,"description":176,"slug":177,"created_at":178,"publish_at":179,"formatted_created_at":180,"category":181,"links":182,"view_type":187,"video_url":85,"views":188,"likes":189,"lang":88,"comments_count":89,"is_pinned":110},"Advertising on QUASA","QUASA MEDIA is read by more than 400 thousand people a month. We offer to place your article, add a link or order the writing of an article for publication.","advertising-on-quasa","2022-07-06T07:33:02.000000Z","2025-12-15T17:33:02.000000Z","15.12.2025",{"title":58,"slug":63},{"image":183,"image_webp":184,"thumb":185,"thumb_webp":186},"https://cdn.quasa.io/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.jpg","https://cdn.quasa.io/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/45SvmdsTQbiyc3nxgbyHY1mpVbisYyub2BCHjqBL.webp","large",70593,4,{"title":191,"description":192,"slug":193,"created_at":194,"publish_at":195,"formatted_created_at":196,"category":197,"links":198,"view_type":84,"video_url":85,"views":201,"likes":189,"lang":88,"comments_count":89,"is_pinned":110},"What is a Startup?","A startup is not a new company, not a tech company, nor a new tech company. You can be a new tech company, if your goal is not to grow high and fast; then, you are not a startup. ","what-is-a-startup","2021-08-04T12:05:17.000000Z","2025-12-17T13:02:00.000000Z","17.12.2025",{"title":65,"slug":66},{"image":199,"image_webp":85,"thumb":200,"thumb_webp":200},"https://cdn.quasa.io/images/news/EOsQhSW3VXyG7a6NPdE1oZd00xfJXe3bjY5aJGb7.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/EOsQhSW3VXyG7a6NPdE1oZd00xfJXe3bjY5aJGb7.webp",68226,{"title":203,"description":204,"slug":205,"created_at":206,"publish_at":207,"formatted_created_at":208,"category":209,"links":210,"view_type":84,"video_url":85,"views":215,"likes":173,"lang":88,"comments_count":216,"is_pinned":110},"Top 5 Tips to Make More Money as a Content Creator","Content creators are one of the most desired job titles right now. Who wouldn’t want to earn a living online?","top-5-tips-to-make-more-money-as-a-content-creator","2022-01-17T17:31:51.000000Z","2026-01-17T11:30:00.000000Z","17.01.2026",{"title":19,"slug":20},{"image":211,"image_webp":212,"thumb":213,"thumb_webp":214},"https://cdn.quasa.io/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.jpg","https://cdn.quasa.io/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/gP8kiumBPpJmQv6SMieXiX1tDetx43VwFfO1P4Ca.webp",42203,1,{"title":218,"description":219,"slug":220,"created_at":221,"publish_at":222,"formatted_created_at":223,"category":224,"links":225,"view_type":187,"video_url":85,"views":230,"likes":173,"lang":88,"comments_count":89,"is_pinned":110},"8 Logo Design Tips for Small Businesses","Your logo tells the story of your business and the values you stand for.","8-logo-design-tips-for-small-businesses","2021-12-04T21:59:52.000000Z","2025-05-05T03:30:00.000000Z","05.05.2025",{"title":15,"slug":16},{"image":226,"image_webp":227,"thumb":228,"thumb_webp":229},"https://cdn.quasa.io/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.jpg","https://cdn.quasa.io/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.webp","https://cdn.quasa.io/thumbs/news-thumb/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.jpg","https://cdn.quasa.io/thumbs/news-thumb/images/news/Wbx2NtS1CnTupgoQbpFMGspJ5jm4uob2hDOq33r0.webp",41299,[232,233,234,235,236,237,238,239,240,241,242,243,244],{"title":23,"slug":24},{"title":47,"slug":48},{"title":55,"slug":56},{"title":43,"slug":44},{"title":51,"slug":52},{"title":31,"slug":32},{"title":35,"slug":36},{"title":27,"slug":28},{"title":19,"slug":20},{"title":15,"slug":16},{"title":58,"slug":63},{"title":11,"slug":12},{"title":65,"slug":66}]