What are Supporting Services Expenses?

Supporting services expenses are the management and fundraising expenses of a nonprofit entity. All other expenses are classified as program expenses. Donors want to see a low percentage of supporting services expenses, which implies that the bulk of their donations are going toward the achievement of the nonprofit’s goals. When this is not the case, donors are less likely to make contributions to a nonprofit.

The main classifications of supporting services expenses are as follows:

Fundraising expenses. This category includes the costs of all fundraising activities, which may include mailers, cold calls, fundraising events, and the use of third party fundraising consultants.
Management and general expenses. This category includes all of a nonprofit’s administrative activities that are not associated with fundraising. Examples of these costs are rent, utilities, and other office expenses, as well as the compensation of the nonprofit’s managers. These expenses are essential for the overall operation of a nonprofit.