The Fund Balance Calculator is a useful tool designed to help organizations, especially non-profits, schools, and government entities, understand their financial position at a specific point in time. It calculates the remaining funds after subtracting total liabilities from total assets.
This information is vital for budgeting, planning, and compliance reporting. A positive fund balance means the organization has more assets than liabilities, indicating financial health. On the other hand, a negative fund balance signals potential financial issues that need attention.
This calculator falls under the Nonprofit and Public Finance Calculator category.
Formula
FB = A - L
Where:
FB = Fund Balance ($)
A = Total Assets ($)
L = Total Liabilities ($)
This formula gives a snapshot of how much funding is available or remaining for future operations, grants, or investments.
Common Asset and Liability Scenarios
Here’s a table showing common combinations of assets and liabilities to help users quickly estimate fund balances without needing to calculate each time.
| Total Assets ($) | Total Liabilities ($) | Fund Balance ($) |
|---|---|---|
| 10,000 | 7,500 | 2,500 |
| 25,000 | 10,000 | 15,000 |
| 50,000 | 45,000 | 5,000 |
| 100,000 | 60,000 | 40,000 |
| 200,000 | 220,000 | -20,000 |
This table is especially helpful for quick checks in finance reports or presentations where speed and simplicity matter.
Example
Let’s say your organization has:
Total Assets (A): $120,000
Total Liabilities (L): $80,000
Apply the formula:
FB = 120,000 - 80,000
FB = 40,000
So, the fund balance is $40,000. This means your organization has a surplus of $40,000 after covering all obligations.
This remaining amount can be allocated for future use, reserved as a safety net, or reinvested into the organization’s mission.
Most Common FAQs
A fund balance is the difference between an organization’s total assets and total liabilities. It shows the net resources available at a given point in time.
It helps assess an organization’s financial health. A positive fund balance shows stability, while a negative balance may require action to avoid insolvency or funding gaps.
Nonprofits, government departments, schools, and financial managers commonly use this calculator to prepare budgets, reports, and financial statements.