NP-Stmnt of functional expenses

Question 1

Expenses, subject to reporting per functional classification, recorded in the general ledger of ABC, a nongovernmental not-for-profit organization, are as follows:

Soliciting prospective members $45,000
Printing membership benefits brochures 30,000
Soliciting membership dues 25,000
Maintaining donor list 10,000
What amount should ABC report as fundraising expenses?

Answer 1

Fundraising activities include publicizing and conducting fundraising campaigns, maintaining donor lists, conducting special fundraising events, preparing and distributing fundraising manuals and other materials, and other activities involved with soliciting contributions. Membership development activities are separate from fundraising activities when members receive significant benefits. The presence of member benefits is indicated by the brochure.