A private NFP organization is required to report its expenses

Question

Quizplus · Accepted Answer

Private not-for-profit (NFP) organizations are required to report their expenses in both functional and natural classifications to provide a more detailed understanding of how resources are utilized. This approach enhances transparency and accountability by showing not only the types of expenses (natural classifications such as salaries, rent, utilities) but also the functions or programs (functional classifications such as education, research, service delivery) those expenses support.

A Private NFP Organization Is Required to Report Its Expenses