The primary reason that not-for-profit (NFP) organizations should report expenses incurred for program purposes...
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Accounting
The primary reason that notforprofit NFP organizations should report expenses incurred for program purposes separately from those for supporting services such as management and general and fundraising is that Multiple Choice GASB standards require it Program managers need information about the cost of activities for which they are responsible. Top managers need to know how much they are spending for nonprogrammatic management and general support. Donors, potential donors, oversight bodies, and others need to know what percentage of total expenses are being incurred for carrying out the NFPs programs.
The primary reason that notforprofit NFP organizations should report
expenses incurred for program purposes separately from those for supporting
services such as management and general and fundraising is that
Multiple Choice
GASB standards require it
Program managers need information about the cost of
activities for which they are responsible.
Top managers need to know how much they are
spending for nonprogrammatic management and general
support.
Donors, potential donors, oversight bodies, and others
need to know what percentage of total expenses are
being incurred for carrying out the NFPs programs.
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