Top 7 functional expense allocation errors
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Top 7 functional expense allocation errors

Apr 07, 2021 · 3 min read



An analysis of expenses by function and nature tells a critical part of a nonprofit’s story. Current and prospective donors, among others, want to know how an organization uses its resources. Don’t underestimate the importance of getting it done right. With that in mind, this article highlights common errors that can occur during the allocation process and some tips to help you avoid them.

1. Lack of Expense Allocation Methodology

The first step to a successful functional expense allocation is

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