Sample Nonprofit Financial Narrative Report (with Template Example)
- Joe Golinveaux
- Sep 25, 2024
- 2 min read
Updated: Oct 24
Every nonprofit has a story to tell — not just through programs and impact, but through numbers. A financial narrative report helps your board, donors, and stakeholders understand how your organization’s finances reflect its mission. Unlike standard bookkeeping records, these reports combine data from QuickBooks online for nonprofits or other accounting tools with clear explanations that highlight results, challenges, and opportunities.
Whether you’re preparing for a board meeting or a grant renewal, knowing how to write a financial narrative makes your reporting easier and more transparent. In this guide, you’ll find a sample nonprofit financial narrative, practical writing steps, and a free downloadable template you can adapt to your own organization.
At MightyNonprofits, we help leaders simplify bookkeeping, grant tracking, and financial reporting so they can focus on making a difference. Let’s walk through how to turn your financial data into a clear, story-driven report your board will appreciate.
What Is a Financial Narrative Report for Nonprofits?
A financial narrative report for nonprofits is a written summary that explains your organization’s financial activity in plain language. It connects your numbers to your goals — showing how donations, grants, and expenses translate into real-world outcomes. Think of it as the story behind your balance sheet: concise, transparent, and mission-driven.
Why Every Nonprofit Should Include a Financial Narrative
Including a financial narrative with your regular reports builds trust and accountability. It helps your board interpret key metrics, allows funders to see the bigger picture, and ensures your entire team understands how your resources support your mission. For nonprofits using outsourced bookkeeping services, this document also bridges the gap between accountants and decision-makers
Downloadable sample nonprofit financial narrative template to be used as part of your nonprofit financial board reports
Below you'll see a sample of a financial narrative to be used as the first page of your financial reports to your board.
Read this article to learn more about the financial narrative report.
Read this article about financial board reports to see the other parts.
Ready to simplify your nonprofit’s finances?
Schedule a free discovery call with our bookkeeping experts and see how MightyNonprofits can help you build clarity, confidence, and control in your accounting.