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I don't trust any of the percentages reported by nonprofits on their statement of functional expenses. Honestly, you can use any "reasonable" method of allocation, and the audit firm with approve it, particularly if it's consistent with the prior year. Charity Navigator has guidelines for the expected program services, management, and fundraising expenses for each type of org. The organizations are all massaging their allocations to be in line with the benchmarks. If you want your donations to count, give to local organizations.
-person who works in nonprofit accounting at a national org |