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

Posted: 25 Aug 2005

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

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 cost allocations to manage the program ratio - a widely used measure of spending efficiency. Using a hand-collected dataset of 708 organization-year observations from 1992 to 2000, 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. Accounting Review, January 2006, Available at SSRN: https://ssrn.com/abstract=784527

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
1,505
PlumX Metrics