Functional Allocation of Expenses

How you allocate expenses is crucial for accurately reflecting your organization's activities and financial health. In this session, you will learn how to correctly classify expenses into appropriate categories and understand the importance of distinguishing between program services and supporting activities. Additionally, we will discuss how to allocate expenses that span multiple functions and the need for transparent disclosure of the methodology used in these allocations.

We will also explore how functional expenses are reported for tax purposes, emphasizing the significance of allocating expenses between program services, management, and fundraising. This allocation is vital, as it influences third-party charity rating systems. Additionally, we will cover tax return disclosures related to grantmaking activities (Schedules F and I) and foreign expenditures (Schedule F), ensuring you understand the requirements and their implications.

PRESENTERS

• Amy Hernandez, CPA | Principal
• Madeleine Bergeron-Edasi, CPA, CIA | Senior Manager
• Jacob Dehne, CPA | Manager

WHO SHOULD ATTEND

• Board or committee members of a tax-exempt organization
• Individuals new to the not-for-profit industry
• Individuals considering forming a new tax-exempt organization
• Individuals needing a refresher on the basics of a charitable organization

EVENT INFORMATION

• Date: June 25, 2026
• Time: 9:00 a.m. to 11:00 a.m. PDT
• Cost: $25 per person
• CPE: 2 credit hours
• Platform: Zoom Webinar

Disclaimer:

It has come to our attention that in order to comply with NASBA CPE Standards, individuals licensed in a state that requires program sponsors to be on the NASBA Registry List will need to have their camera on during the entire webinar. Please check your State Board rules in order to determine if this applies to you.