Ellin & Tucker Offices

Article of Interest- How NFP Should Allocate Joint Costs

Recommended By:  Kim Fusco

The Journal of Accountancy published an article in October 2014 discussing the allocation of joint costs by not-for-profit organizations.  While the accounting standards and guidance surrounding this area have not changed, the allocation of joint costs activities continues to receive attention due to pressures for an organization to show a strong program functional expense ratio (program expenses as a percentage of total expenses).  The profession has been under scrutiny given the fact that the allocation of joint costs is somewhat subjective.  This article touches on both the basics of determining whether an activity can be allocated amount program, management and general, and fundraising and provides some standard methodologies to allocate the various costs.


Click to read How NFPs should allocate joint costs By: Joseph W. Cruitt, CPA, CGMA


As a Principal in Ellin & Tucker’s Audit, Accounting, and Consulting Department, Kim is dedicated to performing high-quality audit, tax, and advisory services to numerous not-for-profit organizations and foundations.  As Chair of the firm’s Not-For-Profit Services Group, Kim’s extensive knowledge of not-for-profit audit and accounting standards, including OMB Uniform Guidance audits, have helped grow the firm’s not-for-profit services group practice to more than 100 organizations in the Baltimore region.


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