Cost Accounting Practices

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Cost Accounting Practices
The Urban Institute
Center on Nonprofits and Philanthropy
Tom Pollak ARNOVA Annual Conference November
2002 Montreal Canada
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Research Questions

• Do nonprofits have the technical and accounting
  infrastructure to meet both their internal and
  external reporting needs?
• Internal track fundraising costs efficiency,
  overall and by tactic
• External Audit and Form 990 requirements
• Does the infrastructure make a difference?

The Urban Institute
Center on Nonprofits and Philanthropy
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Three Elements for Tracking Activities

• Labor
• Other costs invoices, bills
• Revenue

The Urban Institute
Center on Nonprofits and Philanthropy
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Number of Respondents by Major Category
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Number of Fundraising Tactics by Budget Size
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Accounting Systems
Source Urban Institute, Financial Reporting
Survey, 2002 (n490)
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Use Software to Track Fundraising Revenue?
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Were your financial statements audited by an
Independent CPA last year?
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Form 990 completed by auditor?
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Track Fundraising Revenue by Fundraising Method?
p lt .07
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DELETE ---Number of Fundraising Tactics by
Budget Size
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Use Software to Track Fundraising Revenue?
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Use Software to Track Fundraising Revenue?
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Invoices or bills coded by functional expense
category?
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Track staff time by functional expense category
for each payroll period?
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Track expenses by fundraising method?
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Track staff time by fundraising method?
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Conclusions

• Internal use
• Does more elaborate revenue tracking make a
  difference?
• Do more refined cost accounting procedures make a
  difference?
• Further research
• Quantitative performance measures
• Perceptions of costs and benefits
• External reporting
• Technology and accounting resources are widely
  available and distributed

The Urban Institute
Center on Nonprofits and Philanthropy