Which financial statement is primarily used by not-for-profits instead of "owner's equity"?

The financial statement primarily used by not-for-profits instead of "owner's equity" is the Fund Balance. In the context of not-for-profit organizations, "Fund Balance" reflects the net assets that are available for the organization's mission and activities. This is essential for tracking the resources that are either unrestricted, temporarily restricted, or permanently restricted based on donor-imposed restrictions.

Not-for-profit organizations do not have owners in the traditional sense, and therefore, the concept of owner’s equity does not apply to them. Instead, they focus on net assets which represent the cumulative excess of revenues over expenses. The Fund Balance captures the organization’s financial health and sustainability, as it indicates how much net assets are available for future use.

In comparison, while the Statement of Activities provides insight into the revenues and expenses over a period, the Balance Sheet, similar to a for-profit entity's statement, shows the financial position including assets, liabilities, and net assets. The Financial Position Statement is another term that can be used interchangeably with Balance Sheet, but it does not specifically denote the unique aspects that Fund Balance does in the context of not-for-profits. Consequently, Fund Balance is the most appropriate term reflecting the equivalent of owner's equity for these organizations.