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Statement of Functional Expenses Template (Excel + PDF)
Split every expense into program services, management and general, and fundraising with written allocation bases, then see the same numbers as Form 990 Part IX and the Part I lines that pull from it. A bridge tab ties your audited total to the return. For executive directors, bookkeepers, and treasurers preparing financial statements or a 990.
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+ Sample Statement PDF
Format: Excel + PDF
Excel Tabs: 6
PDF Pages: 1
Updated: October 2026
XLS+PDF
Functional Expenses Pack
6 tabs + 1 page · ~110 KB · 100% free · No signup required
What’s Inside the Template
The hard part of a statement of functional expenses isn’t the arithmetic. It is deciding how to split the costs that serve more than one function, and being able to show why. This workbook asks for the bases first, then does the splitting, the Form 990 mapping, and the checks.
Excel · Tabs 1–2How to use + Bases
- The rules behind each tab, with sources
- Allocation bases: time records, square footage, staff count, direct
- A 100% check on every basis
- A calculated “follows salaries” basis for benefits and payroll taxes
Excel · Tabs 3–4Expenses + Part IX
- Up to 30 expense accounts with a Part IX line and basis each
- Program, management and general, and fundraising columns that always tie
- Part IX lines 1–24 and line 25, columns (A) to (D)
- Share of total by function
Excel · Tabs 5–6 + PDFPart I, Audited vs 990, Sample
- Part I lines 13–18 pulled from Part IX, with a tie-out check
- Audited total to Part IX bridge (donated services, event direct costs)
- A filled-in example you can overwrite
- One-page PDF of the sample statement
What the Sample Shows
The sample is an illustrative organization with $586,500 in expenses across 13 accounts. Salaries, benefits, and payroll taxes are $420,000 of it, so the time records decide most of the split. The result: 69% program services, 21% management and general, 10% fundraising.
Program services$406,283 Part IX, column (B)
Mostly people
85% of staff time and 30% of the executive director’s, plus program supplies and 75% of the space.
Management and general$123,625 column (C)
Running the place
Accounting and audit, board meetings, general liability insurance, and 55% of the director’s time.
Fundraising$56,592 column (D) = Part I, line 16b
Asking for gifts
Appeal printing and postage, donor travel, and the fundraising share of time and space.
Tie-out$586,500 Part I, line 18
Same total everywhere
Part IX line 25, Part I line 18, and the audited total less $24,000 donated services and $18,000 gala direct costs.
Who This Template Is For
ED
Executive Directors
Who sign the 990 and want a program percentage they can explain with timesheets and a floor plan.
BK
Bookkeepers
Who close the year and need to hand the 990 preparer a Part IX that ties to the books.
TR
Board Treasurers
Who review the return before it is filed and want to see where each column comes from.
AU
Audit Prep Teams
Who need the allocation method written down before the auditor asks for it.
How to Use This Template
Step 1
Write down your bases
On the Bases tab, enter each basis and its three percentages. Start with time records for people and square footage for space.
Step 2
Enter the year’s expenses
Copy each account’s total from your profit and loss report, pick its Part IX line and basis, and the three columns fill in.
Step 3
Check Part IX and Part I
Both tabs show OK when every expense has a line and line 18 equals Part IX, line 25. Fix any row the Expenses tab flags.
Step 4
Bridge to the audit
If you are audited, enter the audited total and the items Part IX leaves out. The difference should be zero before you file.
The Rules Behind the Columns
Under GAAP, ASU 2016-14 requires every nonprofit to show expenses by both nature and function in one place, on the statement of activities, as a separate statement, or in the notes, and to disclose how costs are allocated. On the tax side, 501(c)(3) and 501(c)(4) organizations complete all four columns of Form 990 Part IX. If your accounting system doesn’t allocate, the IRS allows any reasonable method, as long as amounts are accurate and the method is documented.
Part IX leaves out amounts reported on Part VIII lines 6b, 7b, 8b, 9b, and 10b, so a fundraising event’s direct costs go to line 8b while its indirect costs, such as advertising, stay in the fundraising column. On Part I, line 15 pulls Part IX lines 5–10, line 16b pulls the fundraising total, and line 18 must equal Part IX, line 25. Lines follow the 2025 Form 990.
Frequently Asked Questions
Is this really free?
Yes. No email address, no signup, no gate. Download either file directly.
What is a statement of functional expenses?
A grid that shows each expense by what it is, such as salaries or rent, and by what it was for: program services, management and general, or fundraising. Under GAAP, ASU 2016-14 requires this analysis in one place, and Form 990 asks for the same grid in Part IX.
How does the template split shared costs?
You define each basis once on the Bases tab, with its program, management and general, and fundraising percentages. Each expense row picks a basis, and the template splits the amount, rounding program and fundraising to the dollar and putting the remainder in management and general so every row ties.
Does it fill in Form 990 Part IX?
It gives you the numbers. Each expense row carries its Part IX line, and the Part IX tab adds them up by line and column, ready to copy into the return. The Part I tab then shows lines 13 through 18 and checks that line 18 equals Part IX, line 25.
Why is our audited total different from Part IX?
Part IX leaves out donated services and use of facilities, and costs the 990 subtracts from revenue in Part VIII, such as the direct costs of a fundraising event. The Audited vs 990 tab starts from your audited total and subtracts those items, the same bridge that filers answering yes on Part IV, line 12a show in Schedule D, Part XII.
Does it work with QuickBooks Online?
Yes. Export a profit and loss report for the year by account and copy each account’s total into the Expenses tab. If you already use classes or locations by function, the report can come out split, and the template becomes your check.
Related Resources
Want Part IX to come out of the monthly close?
When we keep your books, every transaction carries its function, so the split is ready at year-end. Form 990 preparation runs $1,800 to $3,000, or from $1,500 when we kept the books for that year. See the full price table.
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