How to Create a Non-Profit Income Statement

The income statement is one of three key financial statements organizations routinely use to give stakeholders a snapshot of their fiscal health. For nonprofits, showing donors that they are financially sound and using their money wisely is a way to keep the contributions coming. Creating an income statement for nonprofits is not complicated.

1. Open a new document in your word processing software, such as Microsoft Word.
2. Place the name of your nonprofit, centered, at the top of the page.
3. Type the time period covered by the financial statement in the line below the organization's name. The date range should also be centered. Typically, this document is prepared at the end of the financial year and covers the entire financial year.
4. Insert a simple table with two columns and as many rows as you think you'll need. In Word, you do this by clicking the "Insert" tab on the ribbon and then selecting table and moving your cursor over the squares in the drop-down to select the number of columns and rows you want.
5. Place the header "Income" on the first row in the left column. In the lines below that, you will include all the money that came into your organization, such as donations to a capital campaign, bequests and gifts from specific fund-raising events. To the right of each item, place the monetary value.
6. Tally all the income from Step 5 and place the resulting figure on the following line, on the right hand side. On the left, type "Total."
7. Repeat Steps 4-6, except now your header will be "Expenses." For a nonprofit, expenses will include everything from the cost of organizing fund-raising campaigns to payroll to utilities and space costs.
8. Place the surplus or deficit in your final row, on the right-hand side. To find this, simply subtract your expenses from your income. To the left, state that this is what the figure represents.