Change in Net Assets
The bottom line of the Statement of Activities — total support and revenue less total functional expenses for the period. The nonprofit analogue of net income, and deliberately NOT called a surplus or a profit: a positive change funds reserves and future programme, it is not a return to anybody. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.
Rogue ID: finance.np_change_in_net_assets
Type: Currency
Domain: Finance
Definition
The bottom line of the Statement of Activities — total support and revenue less total functional expenses for the period. The nonprofit analogue of net income, and deliberately NOT called a surplus or a profit: a positive change funds reserves and future programme, it is not a return to anybody.
Formula
change_in_net_assets = total_support_revenue − total_functional_expenses.Why it matters
The period result the board is accountable for, and the line that connects the statement to the operating reserve.
How to interpret
A planned deficit spending down a restricted award is a different result from an unplanned one; the statement cannot tell them apart, so the narrative must.
Related KPIs
finance.np_total_support_revenuefinance.np_total_functional_expensesfinance.runway_months
Source
FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities · section: ASC 958-205 (change in net assets) — published 2016-08-01.
Why does this cite FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities? Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.
Stage relevance
| Company stage | Priority |
|---|---|
| Pre-Seed | Core |
| Seed | Core |
| Series A | Core |
| Series B | Core |
| Series C+ | Core |
| Public | Core |
Suggested for stages: Pre-Seed, Seed, Series A, Series B, Series C+, Public.
Default owning functions
- Finance
Machine-readable
- This KPI as JSON:
/api/ontology/finance/np_change_in_net_assets.json - All Finance KPIs:
/api/ontology/finance.json - Full catalog:
/api/ontology/index.json
Net Working Capital Adjustment
Signed net effect on cash of changes in current assets and current liabilities — receivables coming in (positive), payables going out (negative), prepaid expenses (negative when paid, positive when burned down), and accrued liabilities (positive when accrued, negative when settled). The rollup of `finance.current_asset_adjustments` and `finance.current_liability_adjustments`. Common pitfall: at early stage this is dominated by payroll-cycle noise and is near zero — once the company adds enterprise contracts with annual prepayments or 60-day net terms, this can swing 1–3 months of burn either direction. Becomes material at Series A+; ignored before that. — Finance KPI, I'mBoard-authored (editorial tier).
Corporate & Sponsorship Support
Corporate philanthropy, workplace giving and event or programme sponsorship recognized in the period. Separated from individual giving because it is relationship-driven and renews on a corporate budget cycle rather than a donor one. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.