What is the difference between direct and indirect expenses on Form 990 PF?
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Direct Expenses are expenses that are directly involved in particular business activities. For example, compensation and travel expenses, the cost of materials and supplies utilized, and fees paid to outside firms and individuals in connection with a business activity are all considered direct expenses.
 
Whereas expenses that are not directly involved in particular business activity but are related to the direct costs incurred in conducting that activity are called Indirect expenses. Occupancy expenses, supervisory and clerical compensation, repair, rental, and maintenance of equipment, as such, are considered Indirect Expenses.