What is the difference between direct and indirect expenses on Form 990 PF?
1.9k views | Last modified 6/4/2020 7:07:27 AM EST | Added by ExpressTaxExempt Team

Applicable To
990-PF 990-N 990-EZ 990 8868 1120-POL

Direct expenses are expenses that are directly involved in a particular business activity. For example, compensation and travel expenses, the cost of materials and supplies utilized, and fees paid to outside firms and individuals in connection with a business activity are all considered as direct expenses.
 
Whereas expenses that are not directly involved in a particular business activity like occupancy expenses, supervisory and clerical compensation, repair, rental, and maintenance of equipment, as such are considered as Indirect expenses.

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