What is the difference between direct and indirect expenses on Form 990 PF?
3.7k views | Last modified 4/19/2024 4:33:12 AM EST |

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

Direct Expenses are expenses that are directly involved in particular business activities. Those are, 

  • Compensation and travel expenses
  • The cost of materials and supplies utilized 
  • Fees paid to outside firms and individuals in connection with a business activity 

Expenses that are not directly involved in a particular business activity but are related to the direct costs incurred in conducting that activity are called Indirect expenses. Those are, 
Occupancy expenses 

  • Supervisory and clerical compensation
  • Repair, Rental, and Maintenance of equipment
  • Expenses incurred by other departments or cost centers that support the department or function responsible for the direct expenses associated with an activity
  • Other applicable general and administrative expenses. 

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