I just found this thread when searching how to run this report for our annual audit. I am shocked. It is really unacceptable for there to be the option to set up your company as a nonprofit organization, and then not have the option to run a Statement of Functional Expenses report, especially when it it is offered in the desktop version of QB. Isn't the point of moving to QBO to increase efficiency and functionality? And yet, less reporting capabilities are offered in QBO than the outdated QB desktop products. I have been severely disappointed in QBO and this new revelation has me considering switching back to desktop.