Only some of the basic elements of financial accounting apply to Non-Profits. For example the income statement, while very relevant to for profit businesses, has little relevance to Non-Profits. Instead a more relevant financial report is the Statement of Functional Expense that shows expenses broken down between program, fund arising and administrative expense. Click below for more detail.
Non-Profits, particular smaller organizations, are very susceptible to fraud. The second article below describes how such organizations can protect themselves.