Joint activity definition
/What is a Joint Activity?
A joint activity is any action associated with a fundraising activity that also can be associated with other functional activities. For example, the management, program, or membership development functions of a nonprofit entity might also engage in joint fundraising activities, such as a direct mail campaign, telemarketing campaign, or a newsletter.
Accounting for a Joint Activity
A joint activity may incur a variety of costs that are not specifically identifiable with a single activity, which are referred to as joint costs. You must meet all of the following criteria in order to separately account for the cost between the fund raising and other functions:
Purpose criterion. The activity must accomplish either management and general functions, or program functions.
Audience criterion. The audience for the activity has a reasonable potential to use the joint activity.
Content criterion. The content provided by the activity must mandate an action that will assist in accomplishing the entity’s mission.
If you cannot meet these three criteria, then the entire cost must be recorded as a fundraising activity.