Not-for-profits organizations report expenses by functional classification: program services and supporting services.

Question

Quizplus · Accepted Answer

This statement is true. Non-profit organizations typically report their expenses in two categories: program services, which are tied to the organization's mission and primary activities, and supporting services, which include administrative and overhead costs. This helps stakeholders understand how the organization is allocating its resources and what percent of its expenses are going towards its core programs.

Not-For-Profits Organizations Report Expenses by Functional Classification: Program Services and Supporting