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How do I know if I have non-operating expenses and where to find them on an audit?

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Non-operating expenses are split into two separate categories in the CDP survey: personnel and non-personnel. 

Non-operating Personnel expenses are incurred outside of the normal business operations of your organization, including personnel costs related to capital campaigns and other capital projects.  

Examples of non-operating personnel expenses include: 

  • Personnel hired to conduct or manage a capital campaign  
  • The portion of an employee’s time spent working on a capital project 
  • A consultant hired to help with reorganization 
  • A lawyer hired to manage a lawsuit 


Non-operating non-personnel expenses are incurred outside of the normal business operations of your organization, such as unusual or one-time costs associated with capital campaigns, property sales, business reorganizations, or lawsuits.  

Examples of non-operating non-personnel expenses include: 

  • capital campaign expenses 
  • expenses related to the sale of a property 
  • business reorganization expenses 
  • expenses due to a lawsuit 

How to find Non-Operating Expenses in an Audit 

Expenses, including non-operating expenses, are listed on the Income Statement or Statement of Activities. Non-operating expenses may or may not be listed separately from operating expenses on your audit. You may find non-operating expenses at the bottom of your Statement of Activities below revenue, expenses, and change in net assets. This area may or may not be labeled “Non-operating”. Occasionally, non-operating expenses are separated from operating expenses on your audit’s Statement of Functional Expenses. 

If it is not clear which of your expenses are non-operating on your audit, or whether you have non-operating expenses, have a conversation with your auditor to determine if these lines apply to your organization. 



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