To provide as accurate a picture as possible of how the organization uses its funds for its purposes, this line item may be broken down into several lines if appropriate.

These guidelines are primarily based on two points taken from the standard:

– Gifts, grants, and funding to fulfill a purpose:
These are straightforward transfers of money to another organization or individual, whether in the form of gifts, grants, or as a straightforward allocation to fulfill the organization’s purpose.

– Costs associated with activities that fulfill the organization’s purpose.
Activities that fulfill the organization’s purpose and that are managed, staffed, and carried out by the organization itself. Since the purposes of different organizations vary greatly, these activities will also differ from organization to organization.

Take me to “Administrative Costs”

Back to the chart of accounts
Glossary – Activity-Based Accounting