In this case, you will develop an operating budget for Extended Family, Inc., a not‐for‐profit (NFP) human service organization. Completing this budget successfully requires a high level of decision making, as you must determine the number of cost pools and allocation bases upon which common costs are to be allocated to the organization's three revenue‐generating programs. This case will expose you to many real‐world issues that NFP financial managers confront when they prepare operating budgets. These issues include: (1) allocating revenue among programs; (2) distinguishing among program, administrative, and fundraising costs; (3) properly treating temporarily restricted contributions; and (4) facing an array of ongoing financial challenges connected with NFPs.
Developing an Operating Budget for Extended Family, Inc.: A Not‐for‐Profit Human Service Organization
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Karyl A. Mammano, Thomas N. Tyson; Developing an Operating Budget for Extended Family, Inc.: A Not‐for‐Profit Human Service Organization. Issues in Accounting Education 1 February 2008; 23 (1): 129–144. doi: https://doi.org/10.2308/iace.2008.23.1.129
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