Funders want to know that their funds are being used for the purposes intended and are being spent efficiently and effectively. This is especially true when resources are constrained. This report reviews literature on measuring administrative expenses and analyzes the administrative expenses associated with the Community Services Block Grant (CSBG). The administrative expenses of Community Action Agencies that administer CSBG funds are compared to those of similar nonprofit organizations. The studys findings suggest the need for greater clarity and consistency regarding administrative expenses across federal guidelines; greater training and technical assistance for financial officers who prepare reporting documents; and possibly different benchmarks regarding acceptable levels of administrative expenditures based on size of organization.
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