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Determining Your Costs
Indirect expenses are the costs that cannot be directly linked to a specific program or service, but support the overall operation of the organization. These are generally categorized as overhead. It is important to include indirect expenses when you are determining the cost of providing services. If you provide one service, all indirect expenses will be included in the cost of that one service. If you provide two or more services, you will need to divide up, or allocate, the indirect expenses among those several services.
Examples of indirect costs include:
- Business insurance
- Audit and legal fees
- Board costs
- Accounting/financial services
