Understanding a nonprofit’s costs is necessary in order for charitable nonprofits to be financially sustainable. Rather than reporting artificially low costs, or ignoring what it really costs to deliver programs and services, the National Council of Nonprofits is encouraging all nonprofits and board members to model transparency of full costs.

Being transparent requires first, that a nonprofit knows its costs (which is not always easy), as well as allocates them properly, and second; that charitable nonprofits help donors and others understand that its costs are essential in order to advance the nonprofit’s mission.

Article from National Council of Nonprofits read it here