Explain why it is or is not appropriate to associate indirect costs with program costs.

Discussion Question

In nonprofit budgeting, it is important to allocate direct costs to specific programs and services.

Discuss the following:

  1. Explain why it is or is not appropriate to associate indirect costs with program costs.
  2. Evaluate and explain how you can distinguish between program costs and indirect costs.
  3. Describe how these costs off-set.
  4. Discuss the role of “in-kind” donations as a vehicle to decrease costs and/or improve revenue flow.
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