Which of the following is not classified as a support activity reported by not-for-profit entities?

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Multiple Choice

Which of the following is not classified as a support activity reported by not-for-profit entities?

Explanation:
Not-for-profit entities separate expenses by function: program services and support services. Program services cover the costs tied directly to delivering the organization’s mission. Support services include activities that enable the organization to operate and raise funds, such as fundraising and management and general. Membership development is typically treated as part of fundraising, a support activity, rather than as a program-related expense. So, expenses labeled as program expenses are not considered a support activity, making them the best answer.

Not-for-profit entities separate expenses by function: program services and support services. Program services cover the costs tied directly to delivering the organization’s mission. Support services include activities that enable the organization to operate and raise funds, such as fundraising and management and general. Membership development is typically treated as part of fundraising, a support activity, rather than as a program-related expense. So, expenses labeled as program expenses are not considered a support activity, making them the best answer.

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