This Subtopic provides guidance on reporting expenses for
not-for-profit entities (NFPs). The guidance in this Subtopic is presented in the following three Subsections:
- a
General
- b
Accounting for Costs of Activities that Include Fundraising
- c
Services Received from Personnel of an Affiliate.
The General Subsections provide incremental guidance on the following subjects:
- a
The functional classification of expenses
- b
The natural classification of expenses
- c
- d
Fundraising costs
- e
Premium costs
- f
Advertising costs
- g
Reductions in amounts charged for goods and services (discounts)
- h
Cost of sales
- i
Costs of occupancy and maintenance
- j
Interest costs
- k
Payments to affiliated NFPs
- l
Expenses of federated fundraising organizations.
For additional information about the presentation of expenses in a statement of activities, see Section
958-220-45.
The functional classifications of fundraising, program, and management and general are discussed throughout the Accounting for Costs of Activities that Include Fundraising Subsections for purposes of illustrating how the guidance in these Subsections would be applied by NFPs that use those functional classifications. Some entities have a functional structure that does not include fundraising, program, or management and general, or that includes other functional classifications, such as membership development. Use of those functional classifications is not intended to require reporting the functional classifications of fundraising, program, and management and general.