Foundation boards and their accountants often use different formats for financial statements.
In response, a group of experienced foundation financial officers, CPAs, and attorneys developed a uniform financial reporting system as a model for any private foundation.
This uniform system can:
- Help your foundation prepare your Form 990-PF. The statements were created with the Form 990-PF in mind, so that financial information can be transferred easily.
- Help bookeepers, accountants, and others with little or no private foundation experience quickly learn the basic financial issues specific to private foundations.
- Allow private foundations to compare their expenses more accurately to those of other foundations, since more foundations will use a standard reporting system.
The primer also includes sample financial statements, including a statement of financial position, statement of activities, statement of cash flows, and notes to financial statements to help your foundation use system as seamlessly as possible.