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Nonprofit Cost Analysis

Although nonprofits generally have a good understanding of their revenues, knowledge about costs can sometimes be less robust. This is particularly the case when it comes to the true, all-in costs of providing services, running programs, and otherwise operating the organization.

Cost Analysis Steps:

1. Determine Purpose & Scope
2. Gather Financial Data
3. Allocate Direct Costs
4. Allocate Indirect Costs
5. Check Your Data
6. Apply This Knowledge

Lacking this information, nonprofit executives often must make important resource-related decisions on the basis of intangibles such as intuition, the skills and knowledge of the program staff, or the preferences and inclinations of the organization’s funders. As a result, they run the risk of undermining their organization’s mission (however inadvertently) by failing to allocate resources to the most appropriate programs and services. Given the limited resources available to nonprofits (especially during financially challenging times), gaining economic clarity around costs is critical to inform key strategic decisions.

Nonprofit Cost Analysis: Introduction [on line version]
Nonprofit Cost Analysis Toolkit: Six Steps to Finding the True Costs of Programs [complete PDF version]

Author(s): Marta Garcia Abadia, Johnny Lin
Published Date: June 03, 2009

EPRC Policy Briefing: National Cohesion Policy Allocations 2014-20

Who are the winners and losers from the 7/8 February 2013 summit? The European Council on 7-8 February 2013 agreed a Multiannual Financial Framework (MFF) containing a new methodology for allocating Cohesion policy funding. Although the MFF may be revised by the European Parliament, a key question is what the Council conclusions might mean for the allocation of Structural and Cohesion Funds to the Member States. Based on EPRC calculations, this EPRC Policy Briefing provides a preliminary assessment of how Cohesion policy might be allocated.

http://www.eprc.strath.ac.uk/news/COHESION_POLICY_ALLOCATIONS_2014-20_EPRC_Policy_Briefing_Feb_2013.pdf

ESF legal papers - Consolidated Structural Funds Legislation for the programming period 2007-2013

The European Commission has produced consolidated versions of EU legislation governing the application of structural funds so as to support Member State authorities in managing related measures. This publication contains legal papers related to the European Social Fund (ESF) and subsequent legislative amendments. They set out the overall remit of the ESF, lay down general provisions for use of funds and establish rules for implementation of ESF-funded actions.

https://infoeuropa.eurocid.pt/registo/000051467/documento/0001/