Remove Indirect Remove Insurance Remove Metrics
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7 Ways Your Nonprofit Can Build a Strong Financial Foundation in 2024

Blackbaud

Calculate Your Indirect Cost Rate Complete and correct cost allocation is key to the financial stability of your organization. If you aren’t including indirect costs—such as salaries or rent—into your funding requests or program planning, you are setting yourself up for stress later in the year. Tip 2: Review your scheduled reports.

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Your Unrestricted Funds Need Stewardship, Too

Blackbaud

Many don’t cover operating costs or have a small allotment for indirect costs such as salaries, insurance, and utilities. So, the organizations behind the grants use the reporting requirements to make sure the funds go towards addressing those impact areas. Restricted funds often outline what they will fund and what they won’t.

Funding 94
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Accounting: Data Behind Functional Expense Reporting

The NonProfit Times

Indirect allocation is the more complex method and should be used when the cost benefits multiple functions. The most common allocation methodologies for indirect allocation include employee time and square footage. Square footage percentages can be used to allocate rent, depreciation, certain insurances, and utilities.