Nonprofit Y sends a mailing to 10,000 people. The mailing

Nonprofit Y sends a mailing to 10,000 people. The mailing contains information about cancer, and also asks the people to make donations. Under GAAP, what are the rules about how the costs of this mailing should be classified? The organization must always consider all the costs to be fundraising, since there was a fundraising message The organization may allocate some of the costs to program expense if all three of the following tests are met: the purpose test; the content test; and the audience/recipient test. The organization may allocate some of the costs to program expense if any one of the following tests are met: the purpose test; the content test; and the audience/recipient test. As long as the mailing has some program purpose, the organization is free to allocate costs between programs and fundraising – there are no special tests to be considered