The statement of financial activities (SOFA) is the primary statement in a charity's accounts, used in place of a profit and loss account. It shows all the charity's income and spending for the year, analysed by type of fund.
What it shows
A profit and loss account is designed to arrive at profit. A charity is not trying to make one, so the SOFA shows where its money came from, what it was spent on, and how each fund changed over the year.
| Section | Typical lines |
|---|---|
| Income | Donations and legacies, charitable activities, other trading activities, investments |
| Expenditure | Raising funds, charitable activities |
| Result | Net income or expenditure, gains and losses on investments, transfers between funds |
| Funds | Net movement in funds, funds brought forward, funds carried forward |
The columns
Figures are shown in columns for unrestricted funds, restricted funds and endowment funds, with a total and the previous year’s total.
And tax
A surplus on the SOFA is not the same as taxable profit. A charity whose income is all exempt has no Corporation Tax to pay however large the surplus, and the accounts are not adjusted for the exemption.
See also the Charities SORP.