Allocate a shared occupancy cost across nonprofit functions using a documented activity driver.
Allocate $12,000 monthly rent across program, management and general, and fundraising using a usable-square-foot driver. Use the activity driver that best matches how the shared cost is consumed. The common trap is allocating shared rent to program because the mission happens in the building, even when finance, governance, and fundraising also consume space. Confirm total driver Usable square feet: 5,400 program + 1,800 management and general + 800 fundraising = 8,000 total. Use the same denominator for every function. Exclude unusable areas only if the policy consistently does so. Calculate function shares Program 5,400 / 8,000 = 67.5%; M&G 1,800…
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