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Classifying and distiguishing expenses vs admin

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DemiDee Posts: 529 Forumite

17 March 2016 at 1:02PM in Charities

Over the years, I've noticed that many charities doing work overseas - particularly larger ones - tend to classify costs relating to [necessary] flights, accommodation and overseas expenses while on the ground, as part and parcel of monies spent on that particular/those particular countries in which the charity is working, rather than classifying such monies as 'administrative'. I would have thought such expenses would be administrative, in that they are not directly benefiting the community.

However, I can also see how such expenses, when a necessary part of a project and kept to a minimum, could be classed as an essential if not crucial part of a successful outcome, and thus an integral part of a particular project rather than simply administration. The Charity Commission recently stated that many charities were incorrectly listing necessary expenses as separate from monies spent on charitable endeavours which is skewing the figures. I can't help but wonder if there are any hard and fast rules on this.

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