This chapter identifies factors to consider in allocating costs of a joint activity to fundraising activities and the appropriate program or management and general function. It also identifies the purpose, audience, and content criteria for allocating joint costs to activities and fundraising activities. For the most part, there are few differences between the treatment of expenses, gains, and losses of not for-profits (NFPs) and commercial entities. NFPs present a statement of activities that presents expenses as decreases in net assets without donor restrictions. The best method of charging expenses to functions is the direct method. If an expense can be specifically identified with a program or supporting service, it should be assigned to that function. Sometimes fundraising activities are conducted with activities related to other functions, such as program activities or supporting services and management and general activities. Costs should be allocated using a rational and systematic methodology.