What it is
Fundraising expenses are costs of soliciting contributions, such as campaigns, certain events and grant-seeking activities, under the applicable reporting instructions.
Why it exists
They show part of the resources used to sustain an organization’s support rather than deliver its programs directly.
When it may help
It helps donors ask how an organization finances its work and whether fundraising methods align with their expectations.
When it may not fit
The smallest fundraising ratio is not automatically best. New campaigns and organizations can have different needs from established ones.
Tradeoffs and access
Shared-cost allocation and event reporting can make surface comparisons misleading. Some direct event expenses appear elsewhere on a return; read the instructions and notes before combining figures.
Tax considerations
Fundraising costs are the organization’s reporting issue; they do not alone establish the deductible portion of an event ticket or donation.
Common mistakes
Avoid treating gross event receipts as net charitable support or concluding that all fundraising expense is waste.
Fictional example
Fictional Alex reads both an event’s revenue and related expense disclosures before asking how much support it generated for the organization.
Questions to ask
What activities are included? Are professional fundraisers involved? Which event costs are reported separately? How have costs changed over time?
What to record in Planstead
Record the filing year, source and relevant expense observations in Charity with uncertainty where classifications are unclear.
Next step
Review the complete filing and ask about material changes before making a comparison.
Sources
Primary sources reviewed 2026-09-14. A source describes its own rules; the fictional examples illustrate questions, not a recommendation.