What are Fundraising Expenses?

Fundraising expenses is a classification of expenses used by a nonprofit entity. Expenses included in this classification are fundraising mailings, fundraising functions, and an allocation of the compensation of those employees engaged in these activities. The proportion of fundraising expenses to total expenses is frequently reviewed by contributors to determine the extent to which their contributions will go toward more fundraising, rather than the targeted goals of the entity.

Presentation of Fundraising Expenses

Fundraising expenses are aggregated into a single line item in the statement of activities, where users can easily access it. The exact position is noted in the following sample statement of activities.