In our previous Behind the Numbers article, we explained the
accounting rules governing the allocation of costs among the functional areas of programs and supporting services in nonprofit organizations (see Nonprofit Issues, October 16-31, 2004). This sequel explores the additional and somewhat arcane accounting rules that dictate when and how “joint activity” costs are split between fundraising and other
functional expense areas.
Behind the Numbers: Cost Allocations when Fundraising is Involved (Adobe Acrobat PDF, 60 KB)