Tax990 Knowledge Base
Have questions? We've got you covered!What is the difference between direct and indirect expenses on Form 990 PF?
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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