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.
Example of a Joint Activity
An example of a joint activity is a charity gala dinner hosted by a nonprofit organization. In this event, the organization raises funds through ticket sales, sponsorships, and donations (fundraising function) while also using the event to educate attendees about its mission (program function) and engage with potential new supporters (membership development function). For example, the American Red Cross might host a fundraising gala where the following activities are present:
Fundraising. They raise money through ticket sales, auctions, and sponsorships.
Program. They feature guest speakers who discuss disaster relief efforts, showcasing their impact.
Management and membership development. They network with donors, recruit volunteers, and strengthen relationships with corporate sponsors.
Since this event serves multiple purposes beyond just fundraising, it qualifies as a joint activity.
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.