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Understanding Functional Expenses for Nonprofits

The Charity CFO

Functional expense reporting confuses many first-time nonprofit bookkeepers and executives. But, because most for-profit companies don’t track functional expenses, they’re just not familiar with it. But it is need-to-know-information in the nonprofit world. But it’s not because it’s complicated.

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501(c)(3) Checklist: Preparing for Nonprofit Status

Top Nonprofits

This means that if you host a fundraising event, sell products, or charge registration fees for events to raise money for your organization without registering, you’ll be considered non-compliant. Have a detailed financial plan and accounting system in place.

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