Management of Financial Information in Charitable Organizations: The Case of Joint Cost Allocations

Posted: 28 Sep 2003

See all articles by Christopher L. Jones

Christopher L. Jones

George Washington University - Department of Accountancy

Andrea Alston Roberts

University of Virginia - McIntire School of Commerce

Multiple version iconThere are 2 versions of this paper

Date Written: August 2003

Abstract

Charities that use direct mailings or other activities that combine a public education effort with fundraising appeals must allocate the joint costs related to these activities to programs, fundraising and administration. This study investigates whether charities use joint costs allocations to manage the program ratio - a widely used measure of spending efficiency. Using a hand-collected dataset of 510 organization-year observations from 1992 to 1998, we find evidence that charities use joint costs to mitigate changes in the program ratio.

Keywords: charities, nonprofit, joint costs, earnings management

JEL Classification: L31, M41, M43, M48

Suggested Citation

Jones, Christopher L. and Alston Roberts, Andrea, Management of Financial Information in Charitable Organizations: The Case of Joint Cost Allocations (August 2003). Available at SSRN: https://ssrn.com/abstract=441284 or http://dx.doi.org/10.2139/ssrn.441284

Christopher L. Jones

George Washington University - Department of Accountancy ( email )

School of Business and Public Management
Washington, DC 20052
United States
202-994-3529 (Phone)
202-994-5164 (Fax)

Andrea Alston Roberts (Contact Author)

University of Virginia - McIntire School of Commerce ( email )

P.O. Box 400173
Charlottesville, VA 22904-4173
United States

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