Entries Tagged ‘Donors’:

Classifying Expenses - Is it Program or Supporting Services

Not-for-profit organizations are required to report financial information about the functional classifications of expenses, such as major program services and supporting services.
There is often confusion surrounding when to classify an expense as program related versus supporting services (which is usually management & general or fundraising).  Program services are activities that result in goods or services [...]

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Can Not-for-Profits Pay Commissions?

There are no hard and fast rules about when a not-for-profit organization may or may not pay commissions. The only guidance is the general consensus that it is ethically questionable for a not-for-profit organization to pay commissions to anyone in a fundraising capacity. It would be hard to justify paying a fundraiser (employee or contracted) [...]

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Joint Costs

Both the Form 990 and your financial statements are required to disclose any joint costs that have been allocated. Many times our clients will respond to our inquiry about such costs with an explanation of how they allocated the cost for this one activity between the two programs to which it related. While we appreciate [...]

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The Donor Bill of Rights

Recently, a group of philanthropic organizations developed a Donor Bill of Rights.  They are valuable to all donors and a timely reminder as we contemplate year end donations.
I.  To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their [...]

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