As part of my follow-up to recent workshops that I’ve run in the last few weeks I wanted to answer a few questions. But first I wanted to thank Alltop.com for including this blog in their list of nonprofit blogs. It feels great to be in such respected company!
Managing the Money, Managing the Organization
For the Managing the Money, Managing the Organization workshop in Long Beach, you can download the handouts from the event here. For those who are interested in looking at a budget narrative I have linked to a PDF of one here. An online search of “sample budget narrative” will reveal a lot more.
Building Financial Literacy
From part one of the Building Financial Literacy workshop in Ventura there was a question about vehicle donation guidance. I would refer all those interested in this to this PDF from the IRS. For other IRS contributions and donation information please check the IRS links and resources to the right. For the folks who wanted information on how to value in-kind donations, please click here.
Nonprofit Summer School
Thanks to all the folks who spent the day with me talking about nonprofit accounting issues at Cal State Fullerton’s event. Many of the questions were about QuickBooks issues, I would direct you to this page of the site for more information and resources.
More Questions and Answers – Donated Items and Services
I have received a rash of questions lately on donation and valuation information for in-kind gifts. I mentioned my post about valuation information above. I have another post about how to enter in donation transactions and another on valuing donated services. I hope those help.
More Questions and Answers – Employee Time and Cost Allocation
Question: We are just starting our marketing and communications program (hiring a marketing manager, revamping our website, etc.). I do not believe that I should classify 100% of these costs as fundraising (the website is mostly about information sharing and public relations). Rather I consider classifying some as program costs, some as administrative expenses and some as fundraising depending on the activities purpose. Is that correct?
Answer: Yes. Not all of the costs described should be lumped into fundraising. The costs should be allocated between programs, admin and fundraising as appropriate.
For example, the marketing manager spends time designing some promotional materials to get word out about a particular program you do. I’d say that is a program expense. Weather particular funder allows their money to be spent on advertising is a separate matter, but the expense is still a program expense. If that same person is designing something to be used for a fundraising gala, that would be a fundraising expense. If they are designing new signage for your offices? The expenses would probably be administrative.
You can click here for many more questions and answers.