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Board OntologyFinance

Fundraising

Expense of raising contributed support in the period — development staff, donor communications, event production labour, grant writing and prospect research. The third FASB functional class. Direct benefit costs of a special event are NOT here; they net against the event revenue line. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.

Rogue ID: finance.np_fundraising_expense Type: Currency Domain: Finance

Definition

Expense of raising contributed support in the period — development staff, donor communications, event production labour, grant writing and prospect research. The third FASB functional class. Direct benefit costs of a special event are NOT here; they net against the event revenue line.

Formula

Expenses allocated to fundraising activity for the period, excluding the direct benefit costs netted against special-event revenue.

Why it matters

The investment side of the contributed-revenue equation — read on its own it looks like overhead, read against what it raised it is a return.

How to interpret

Pair with finance.np_cost_to_raise_a_dollar; cutting fundraising expense reliably improves the programme ratio and reliably shrinks the organisation.

  • finance.np_total_functional_expenses
  • finance.np_cost_to_raise_a_dollar
  • finance.np_individual_contributions

Source

FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities · section: ASC 958-720 (functional expense classification) — published 2016-08-01.

Why does this cite FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities? Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Pre-SeedCore
SeedCore
Series ACore
Series BCore
Series C+Core
PublicCore

Suggested for stages: Pre-Seed, Seed, Series A, Series B, Series C+, Public.

Default owning functions

  • Finance
  • Development

Machine-readable

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