As a non-profit are you categorizing your fundraising expenses accurately? These expenses should relate to the non-profits classification as specified with the IRS. It is a key tool to establish proper policy and procedure guidelines to ensure those supporting the non-profit organization are following the required guidelines.
"Fundraising expenses are defined as a subgroup of a nonprofit's supporting activities expenses. This functional expense classification is used for the fundraising activities including fundraising campaigns, mailings for funds from supporters, and other solicitations for contributions. It may also include an allocated portion of the executive director's salary and benefits plus other management and general expenses."
In addition, a non-profit should be reporting funds by functions - what does that mean? For a not-for-profit organization, the reporting of expenses by function means the statement of activities will report expenses according to the following functional classifications: 1) each of its major programs, and 2) the supporting services which are a) management and general, b) fund-raising, and c) membership development.
Just as there is a high rate of failure among business startups, charities can go under just as quickly. That's why founders of new charities and existing organizations must think long and hard about the how, why, where, and when. Below are just a few common mistakes tips business owners should avoid.
A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them. – John C. Maxwell
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.