Accounting for a not-for-profit organization's fund-raising costs.
The AICPA's Statement of Position (SOP) 98-2 provides guidance on how a not-for-profit entity should account for costs associated with activities that involve a fund-raising component in combination with one or more mission-related components. Costs may be allocated among the various components of such an activity as long as the activity meets certain criteria specified by SOP 98-2. These criteria are related to the activity's purpose, audience, and content. If the activity does not meet the criteria, then all costs of the activity must be shown as fund-raising costs.
Clark
S J
SJ
School of Accountancy and Information Systems, University of Southern Mississippi, Hattiesburg, Mississippi, USA. clark@cba.usm.edu
Jordan
C E
CE
D000066:Accounting / Q000379:methods / Q000592:standards*; D003361:Cost Allocation / Q000379:methods* / Q000592:standards; D005653:Fund Raising / Q000145:classification / Q000191:economics*; D009937:Organizational Objectives; D009939:Organizations, Nonprofit / Q000191:economics*; D014481:United States