Read a charity financial summary
See this course’s project requirements
A fictional giving decision file with identity checks, mission fit, financial statement comparison, outcome uncertainty and a capped giving plan.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A fictional identity check and real verification plan.
- A mission/use-fit comparison with restriction conditions.
- A financial position/performance/liquidity bridge.
- A defined ratio and unit-cost comparison with non-ranking limits.
- A completion/outcome claim check and restriction evidence questions.
- A capped fictional giving decision and renewal/verification conditions.
Review and revise
Use these criteria to check your work and choose what to improve.
- Identity: practice versus actual status verification is clear.
- Finance: position/performance/restriction ratios reconcile.
- Claims: outcome and program scope limits are explicit.
- Decision: budget, use and renewal conditions permit a hold without payment.
Want more background?
The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Entirely fictional charities: no actual registry finding claimed. A=Pathway Youth, practice ID A001,40-hour mentoring; B=Reading Harbor, practice ID B002,8-hour reading program/books. A assets 200,000/liabilities 50,000, revenue 100,000, expenses 90,000(program 60,000/admin 20,000/fundraise 10,000), cash 50,000 of which 40,000 restricted, monthly unrestricted cost 6,000, enrolled 80/completed 50. B assets 80,000/liabilities 10,000, revenue 80,000, expenses 75,000(program 60,000/admin 10,000/fundraise 5,000), cash 18,000 unrestricted, monthly cost 9,000, enrolled 60/completed 48. A accepts mentoring restrictions; B accepts book-purchase restrictions. Donor fictional monthly resources 300/required commitments 280, maximum giving 20/month; proposed giving 15/month, reserve 5. Payment is never required.
Net assets, total cash and spendable cash are different quantities.
Read a charity financial summary — complete worked case
Net assets, total cash and spendable cash are different quantities.
Entirely fictional charities: no actual registry finding claimed. A=Pathway Youth, practice ID A001,40-hour mentoring; B=Reading Harbor, practice ID B002,8-hour reading program/books. A assets 200,000/liabilities 50,000, revenue 100,000, expenses 90,000(program 60,000/admin 20,000/fundraise 10,000), cash 50,000 of which 40,000 restricted, monthly unrestricted cost 6,000, enrolled 80/completed 50. B assets 80,000/liabilities 10,000, revenue 80,000, expenses 75,000(program 60,000/admin 10,000/fundraise 5,000), cash 18,000 unrestricted, monthly cost 9,000, enrolled 60/completed 48. A accepts mentoring restrictions; B accepts book-purchase restrictions. Donor fictional monthly resources 300/required commitments 280, maximum giving 20/month; proposed giving 15/month, reserve 5. Payment is never required.
Fictional financial and participation summary
Paste at A 1.
| AMeasure | BA | CB |
|---|---|---|
| Assets | 200000 | 80000 |
| Liabilities | 50000 | 10000 |
| Revenue | 100000 | 80000 |
| Expenses | 90000 | 75000 |
| Program | 60000 | 60000 |
| Admin | 20000 | 10000 |
| Fundraise | 10000 | 5000 |
| Total cash | 50000 | 18000 |
| Restricted cash | 40000 | 0 |
| Monthly unrestricted cost | 6000 | 9000 |
| Enrolled | 80 | 60 |
| Completed | 50 | 48 |
| Program hours | 40 | 8 |
Copy as plain text
1. 3.1 Read
Calculate net assets and period surplus separately from cash.
You should see: A 150,000/10,000; B 70,000/5,000.
2. 3.2 Read
Subtract restricted cash for case spendable boundary.
You should see: A 10,000 available; B 18,000.
3. 3.3 Read
Divide unrestricted cash by monthly unrestricted cost.
You should see: A 1.67 months; B 2 months.
4. 3.4 Read
Change A restricted cash 30,000 with total 50,000; recompute 20,000/6,000≈3.33 months.
You should see: Only restriction input changed.
What to finish
A financial position/performance/liquidity bridge.
Watch for this
Using total assets or cash without restrictions to guarantee operating coverage.
How can I tell I understand it?
Verify that your completed financial position/performance/liquidity bridge meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
You’ll get an explanation for each answer. Signed in? Your results save to your account.
Pass the check. We’ll save the progress.
Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Read annual-return/application availability. Course supplies simplified original financial summaries rather than copying a real Form 990 or claiming it proves impact.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read official-name/EIN/returns and status limitations, including revocation versus reinstatement. Practice IDs are invented; no actual registry query or tax-deductibility finding is claimed.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
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