Balance sheet

The SoFA shows the year’s movement. The balance sheet shows the position at a moment — and it is where restricted funds become visible.

A charity balance sheet analyses funds between unrestricted, designated, restricted and endowment. That split is what turns a headline cash figure into an answer about what the charity can actually spend.

Money in the bank is not the same as money available: see free reserves. Required in accruals accounts; receipts and payments charities prepare a statement of assets and liabilities instead.