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The Nonprofit Administration Dilemma: How Much Should You Spend on Fundraising?

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These are also known as indirect costs, expenses that cannot be tied directly to programs. Studies show nonprofits often have different ways of categorizing expenses, with many claiming too much for indirect or overhead costs, while others attribute expenses to programs that should be considered management and general expenses.

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Nonprofit Accounting Basics: 5 Fundamentals to Know

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However, nonprofits like yours can’t turn a profit by definition—all of the funding you bring in has to be reinvested into your organization. The Difference Between For-Profit and Nonprofit Accounting Most for-profit organizations’ main goal in accounting is to earn the largest possible profit.