Functional expense schedule best practices for not-for-profits
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Functional expense schedule best practices for not-for-profits

1 year ago · 3 min read



For some not-for-profit entities (NFPs), a separate statement of functional expenses will be the most efficient and effective way of presenting the analysis of expenses by function and nature that is required under FASB ASC 958. With that in mind, the following are some best practices for organizations to keep in mind as they prepare these schedules.

  • For natural categories, less is more. A common misconception is that U.S. GAAP prescribes a specific number of natural categories or a suggested

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