Management & General
Expense of governing and administering the organisation in the period — executive time not attributable to a programme, finance and HR, audit, insurance, board governance and general occupancy. The second FASB functional class. Persistently understating it is the best-known distortion in nonprofit reporting: real organisations need real administration. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.
Rogue ID: finance.np_management_general_expense
Type: Currency
Domain: Finance
Definition
Expense of governing and administering the organisation in the period — executive time not attributable to a programme, finance and HR, audit, insurance, board governance and general occupancy. The second FASB functional class. Persistently understating it is the best-known distortion in nonprofit reporting: real organisations need real administration.
Formula
Expenses allocated to management and general activity for the period, including the administrative share of shared costs.Why it matters
The board’s own honesty test: understating administration to flatter the programme ratio hides the cost of the infrastructure the mission actually runs on.
How to interpret
A share in the low-to-mid teens is unremarkable for a small organisation; a share near zero is a reporting problem, not an achievement.
Related KPIs
finance.np_total_functional_expensesfinance.np_program_expense_ratio
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 stage | Priority |
|---|---|
| Pre-Seed | Core |
| Seed | Core |
| Series A | Core |
| Series B | Core |
| Series C+ | Core |
| Public | Core |
Suggested for stages: Pre-Seed, Seed, Series A, Series B, Series C+, Public.
Default owning functions
- Finance
Machine-readable
- This KPI as JSON:
/api/ontology/finance/np_management_general_expense.json - All Finance KPIs:
/api/ontology/finance.json - Full catalog:
/api/ontology/index.json
Investment & Other Income
Interest, dividends and realized investment return on operating reserves and any endowment, plus miscellaneous income not classified elsewhere. Kept small by design; a material balance here usually means the organisation holds an endowment that deserves its own reporting. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.
Programme Expense Ratio
Programme services expense as a percentage of total functional expenses for the period — the share of everything spent that went to delivering the mission. The most widely read nonprofit efficiency measure, and the most widely gamed: it is only as honest as the cost-allocation method behind it. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.