filed in Allocation on Mar.09, 2010
If you are a performing arts organization and have substantial expenses relating to advertising for people to buy tickets for the performances, it would make sense to functionally allocate those expenses to program activities, right? After all, providing these performances is part of your mission. Actually, the answer is probably no. Whether advertising expense can [...]
filed in Fundraising on Mar.02, 2010
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 [...]
filed in Allocation on Feb.23, 2010
At a recent Lunch & Learn I presented the topic of cost allocations for nonprofit organizations. Allocating costs in a nonprofit involves the functional allocation of expenses between 3 different classifications: program activities, management/general activities, and fundraising activities. Allocating costs may not be considered to be much of a priority at a nonprofit organization. Why [...]
filed in Volunteering on Feb.16, 2010
I recently attended an Inspire Luncheon hosted by the Scottsdale Chamber at which Linda Milhaven spoke. For those who are involved in Scottsdale you likely know (or know of) Ms. Milhaven, as she is very involved in the community. While I was excited to hear what she had to say, I was struck by something others [...]
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