Central Indiana Community Foundation

We’re grateful to the friends and partners who joined us last night to celebrate CICF and Charitable Advisors joining forces. CICF CEO Jennifer Bartenbach and Charitable Advisors Founder Bryan Orander shared more about what’s in store for our partnership, and the trends they’re seeing in the nonprofit sector. Stay tuned for a recording of their remarks.

Your nonprofit tax return tells a story to donors, including how your organization spends money to carry out its mission.
When donors or funders review a nonprofit’s Form 990, one of the areas they may pay close attention to is the Statement of Functional Expenses.
That section shows how expenses are allocated across program services, management and general expenses, and fundraising. It is an important part of the story the 990 tells, and it can also be misunderstood.
An increase in overhead is not inherently bad. Nonprofits need staff, systems, facilities, compliance, fundraising, technology, training and workforce support to deliver on their missions. These are real costs of doing good work.
The issue is often not overhead itself, but whether expenses are allocated accurately. Rent, utilities and software may support both programs and administration. If those costs are recorded only as Management & General, the organization may appear to have higher overhead than it actually does.
A thoughtful cost allocation plan helps ensure the 990 reflects the organization’s work more accurately. It also gives leadership better information for internal decision-making.
Learn more in our article, “Your Nonprofit Tax Return Tells a Story To Donors”: https://loom.ly/8LOOnkk