What are non-profit financial reports?

Non-profit groups are required to file financial reports in order to remain classified as a tax exempt 501(c)(3) organization. The basic financial reports that must be filed are a balance sheet, income and expense statement, statement of cash flow and statement of functional expenses, according to Nonprofit Answer Guide.

Other reports that may be needed, depending on the function of the organization, are government information returns, payroll tax returns, reports to funders, management reports, budget monitoring reports, and analysis of statements and investments reports, notes Nonprofit Answer Guide. These reports are used to determine the financial health of an organization, give financial details to the organization's board of directors and apply for grants.