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Credits

Sponsored by Lorman Education
Product ID: 405042EAU
 
Credit & Course Provided by:

Allocating Direct or Indirect Costs for Nonprofits

OnDemand Webinar (90 minutes)

Learn how to make smarter strategic decisions on program performance with the proper allocation of costs.Indirect cost allocation can be confusing but understanding how to allocate these costs is crucial in order for an organization to accurately capture and recover cost incurred. Overhead and G and A are part of the cost of doing business and nonprofits need to know how to present their programs in a way that represents the true picture of what goes into conducting the program. We will discuss how to identify indirect costs and methods and cost drivers for allocating an indirect cost pool across programs. We will also discuss joint cost and how it can help you present your fundraising costs more accurately as well as what you need to do in order to have costs that qualify for this allocation. Finally, we will discuss the complex world of Negotiated Indirect Cost Rate Agreements for Federal awards. We will go over the guidelines for what's unallowable under Federal guidelines and how that gets treated and then finally how an organization applies for an indirect rate for a Federal award.

Authors

Carol E. Barnard, CPA, CFE, Aronson LLC

Agenda

Allocating Indirect Costs

  • Why Allocating Costs Is so Important for Nonprofits
  • Identifying Indirect Costs
  • Different Methods for Allocating

Joint Cost

  • What Qualifies as a Joint Cost
  • Meeting the 3-Part Test
  • Ratios and Charity Navigator

Negotiated Indirect Cost Rate Agreement for a Federal Award

  • Allowable/Unallowable Costs Under Federal Guidelines
  • Modified Total Direct Costs vs. Labor
  • Applying for a NICRA