Wiley Not-for-Profit GAAP 2017

13Fundraising and Joint Costs

1. Perspective and Issues
2. Concepts, Rules, and Examples
   1. Joint Costs That Include a Fundraising Appeal
   2. Contributed Items Used for Fundraising Purposes
   3. Reporting Special Events
   4. Reporting No Fundraising Expenses
3. Disclosure Requirements
4. Appendix A Checklist

Perspective and Issues

Fundraising expenses are those expenses incurred to induce donors to contribute to an organization. Such expenses must be reported separately in the financial statements of organizations that solicit significant amounts of gifts from the general public. The FASB standards require such disclosure by all not-for-profit organizations (except where these costs are immaterial to an entity). Issues relating to these expenses include what types of expenses should be called fundraising, when they should be reported as expenses, and when and how to allocate multiple-purposes expenses. Chapter 14 also discusses functional reporting requirements. The reporting of fundraising expenses is important to readers of financial statements of not-for-profit organizations. Readers are interested in the percentage of fundraising expenses to the organization's program expenses and total expenses. They are also interested in how much money is raised for each dollar of fundraising expenses.

In certain circumstances, joint costs of informational materials and activities that include a fundraising appeal may be allocated between fundraising and the appropriate program or management and general function. ...