Question: What does functional expense presentation mean? What does natural expense classification mean? What is the purpose of requiring NFP organizations to present this information to

What does functional expense presentation mean? What does natural expense classification mean? What is the purpose of requiring NFP organizations to present this information to users?

Under FASB standards, NFP entities must clearly identify the expenses that are program related from those that are management & general and fundraising. What is the benefit of providing this information when an entity is primarily funded by user charges (tuition and fees) versus contributions?

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