Non-Profit

Joint Costs: Program vs. Fundraising

Allocating costs for a direct mail campaign that includes both an educational message and a solicitation.

Account NameTypeDebit ($)Credit ($)
Program Expense (Public Education)Expense (+)3,000.00-
Fundraising ExpenseExpense (+)2,000.00-
Cash / Accounts PayableAsset/Liability (-)-5,000.00

💡 Accountant's Note

Under SOP 98-2, you can only allocate part of the cost to 'Program' if you meet specific criteria regarding Purpose, Audience, and Content.

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