Question

Give an example of supporting services expense and tell your thoughts about it.

Answer 1

Supporting services expenses are those that are necessary to make program services possible. These expenses are typically classified into management and general expenses and fund-raising expenses.

Supporting services expenses are the management and fundraising expenses of a nonprofit entity. All other expenses are classified as program expenses. Donors want to see a low percentage of supporting services expenses, which implies that the bulk of their donations are going toward the achievement of the nonprofit’s goals.