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

2. 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

3. Three Elements for Tracking Activities
Labor
Other costs – invoices, bills
Revenue
The Urban Institute
Center on Nonprofits and Philanthropy

4. Number of Respondents by Major Category

5. Number of Fundraising Tactics by Budget Size

7. Accounting Systems
Source: Urban Institute, Financial Reporting Survey, 2002 (n=490)

8. Use Software to Track Fundraising Revenue?

9. Were your financial statements audited by an Independent CPA last year?

10. Form 990 completed by auditor?

11. Track Fundraising Revenue by Fundraising Method?
p < .07

12. DELETE ---Number of Fundraising Tactics by Budget Size

13. Use Software to Track Fundraising Revenue?

14. Use Software to Track Fundraising Revenue?

15. Invoices or bills coded by functional expense category?

16. Track staff time by functional expense category for each payroll period?

17. Track expenses by fundraising method?

18. Track staff time by fundraising method?

19. Conclusions Internal use External reporting
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