What it is
A not-for-profit must report expenses by function, programs and supporting services, and by natural classification. The numbers that matter are the allocations: how much of salaries, rent and depreciation belongs to each program, to administration and to fundraising. This workbook builds that matrix with the basis for each allocation in plain view.
Enter the allocation quantities by function once, such as FTE counts and square feet, then enter each natural expense with any direct charges and the basis for the remainder. The workbook splits the remainder, totals by function and ties the result to the statement of activities, with a program share of total expenses.
When to use it
- At year end when preparing or auditing the statement of functional expenses.
- When the board, a funder or a rating body reviews the program share of expenses.
- When staff time, space or the program structure changed and the bases need updating.
What’s inside
- Bases tab: quantities by function for four allocation bases and the share each function receives
- Matrix tab: 25 natural expense rows with direct charges, allocation and totals by function
- Check column that flags any remainder with no basis
- Summary tab with program and supporting totals, program share and ties to the ledger and statements
Standard cited
This template follows ASC 958. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What is a reasonable allocation basis?
One that reflects how each function uses the resource: staff time or FTE for compensation, square feet for occupancy, time study hours where records are kept. Keep it consistent from year to year, document the reason and change it only when the facts change.
Does this handle joint costs of fundraising appeals?
No. A cost of an activity that combines fundraising with program or administrative content is subject to its own criteria. Evaluate it under the guidance before allocating it here.
Is a high program ratio required?
No standard sets a required ratio. Funders and watchdogs may use one, but the statements must show the true allocation. The workbook reports the ratio and nothing more.
Related templates
- Audit Program: Nonprofit Organization
- Nonprofit Financial Statements Template (ASC 958)
- Nonprofit Net Assets and Donor Restriction Rollforward
- Disclosure Checklist: Not-for-Profit Entities (ASC 958)
Last updated 11/05/2026. All free templates.