Cash Flow Statement

Track Cash Movement

The Statement of Cash Flows shows where your cash is actually coming from and where it's going. While the Income Statement shows revenue and expenses (which can include non-cash items like pledges and depreciation), the Cash Flow Statement focuses purely on actual cash moving in and out of your accounts.

Cash Flow Categories

• Operating Activities: Cash from your day-to-day operations—donations received, expenses paid, payroll, and vendor payments. This is the core of your cash flow.
• Investing Activities: Cash from buying or selling investments, property, or equipment. Purchasing a new van or selling an investment shows up here.
• Financing Activities: Cash from loans, lines of credit, or other financing arrangements. Taking out a loan increases cash; paying it back decreases cash.

Why It Matters

A nonprofit can show a surplus on its Income Statement and still run out of cash. How? Pledges recorded as revenue but not yet received, large expenses prepaid, or equipment purchases that don't show on the Income Statement. The Cash Flow Statement catches all of this.

What to Look For

• Positive Operating Cash Flow: Your day-to-day operations are generating cash, not consuming it
• Cash Burn Rate: If operating cash flow is negative, how quickly are you going through reserves?
• Large Swings: Unusual jumps may indicate timing issues with grants, pledges, or major purchases

Generating the Report

1. Go to Reports → Cash Flow Statement
2. Select the date range
3. Click "Generate"
4. Export to PDF or Excel

Board Presentations

Present the Cash Flow Statement alongside the Balance Sheet and Income Statement for a complete picture of your financial health. Together, these three reports tell the full story.