Cost Allocation: The Basics and Best Practices
What Nonprofits Need to Know and Why Methodology Matters
A well-designed cost allocation methodology provides nonprofit leaders with critical financial insights for informed decision-making. It also ensures transparency and compliance with funder expectations. In an article for Nonprofit Accounting Basics, Hatsy Cutshall, Director of YPTC’s Government Awards Management Department, covers the basics of cost allocation for nonprofits—with real-world illustrations.
Find out:
- How to allocate shared or indirect costs effectively
- When cost allocation may involve multiple steps
- Best practices for cost allocation methodology and application
Read the full article for actionable insights and make sure you’re up to speed on this important aspect of nonprofit accounting.
Looking for more overhead cost allocation guidance or assistance?
View our on-demand webinars:
- More than Admin: How Overhead Powers Your Mission
- Understanding Overhead: So It’s Not Over Your Head
Check out our federal funding resources for information on negotiated indirect cost rate agreements (NICRAs). Contact our team with questions at federalawards@yptc.com.
