Get State Of Utah Statement Of Functional Expenses Form

Part IX of Form 990 requires those expenditures to be broken down into three classes: 1) program service expenses, 2) management and general expenses, and 3) fundraising expenses. These classes do not replace expense categories, however, but rather provides a further breakdown of the category.

Nonprofit organizations are required to report their financial activities in two ways: a report of their natural expenses and a report of their functional expenses. Natural expenses are reported by all businesses, whether nonprofit or for-profit, but only nonprofits are required to file their functional expenses.

What is the Statement of Functional Expenses? A statement of functional expenses is used to show how expenses are incurred for each functional area of a nonprofit entity. Functional areas typically include programs, fundraising, and management and administration.

All organizations who complete the IRS Form 990 N (post card), 990-EZ, 990-PF or who do not complete any 990 must complete the Statement of Functional Expense Form. Column (A) Every expense should be listed here.

All organizations who complete the IRS Form 990 N (post card), 990-EZ, 990-PF or who do not complete any 990 must complete the Statement of Functional Expense Form. Column (A) Every expense should be listed here.

The Statement of Functional Expenses (Part IX, page 10) is where you must report the details of your organization's expenses and indicate whether those expenses were used for program services, management and general or fundraising purposes.

The statement of functional expenses (SOFE) is a financial report used by not-for-profit organizations to present the functional classification of expenses in addition to the natural classifications of expenses.

The Statement Of Functional Expenses explains the costs incurred for each functional area of the organization. The functional classifications include: programs, management and general and fundraising.