Charity Navigator is a 501(c)(3) organization that seeks to provide objective ratings of charitable organizations in terms of their financial health. The ratings can help guide donors who are considering where their dollars might best be utilized. Specifically, how much of their dollar is used towards raising the next dollar as opposed to going to the program.
This is an important service that provides additional transparancy in the nonprofit community.
However, the Charity Navigator has its own methodologies for determining what counts as fundraising versus program and it’s different from what GAAP says.
ASC 958-720-45 states that joint costs (where a portion of …read more
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