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This nonprofit course on Nonprofit Functional Expenses shows us that one of the major differences in financial statement presentation between for profit companies and nonprofit organizations is the presentation of nonprofit functional expenses on the Statement of Activities and Changes to Net Assets. While the revenue section of the report is the same as a standard income statement, with a list of revenue by category, such as contributions and gifts, program service revenue, grants and investment income, the expense section does not list expenses by category, but by functional classification.
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