Under which of the following conditions is it appropriate for a private not-for-profit to allocate the cost of mass mailings from fund raising to a program related activity, such as Public Education?

Question

Quizplus · Accepted Answer

The AICPAs issued a statement establishing guidance for allocation of costs that involve fund-raising. The statement indicates that it is appropriate to allocate costs from fund-raising to a program function when the activity meets three conditions: Purpose: The purpose of the joint activity includes accomplishing program functions. Audience: The audience is selected based on characteristics other than ability to make contributions. Content: The activity calls for specific action by the recipient that is will help accomplish the organization's mission.

Under Which of the Following Conditions Is It Appropriate for a Private