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Money · Guided lesson

Explain a shared cost allocation

About 30 minutes · 8 reading + 22 practice and checks
Time includes reading, practice, and questions. Extra videos or further study are optional.
See this course’s project requirements

A program finance packet with cash and donated resources, funding restrictions, shared costs, payment timing, variance review and a final report.

Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.

What to include

  • A program resource budget separating cash and in-kind support.
  • A funding-by-cost matrix with restricted balances visible. A documented shared-cost allocation and funding check.
  • A program cash-timing check with a conditional launch rule.
  • A line-by-line variance review with a funding gap flagged.
  • A nonprofit program finance report with reconciled funds and service-cost context.

Review and revise

Use these criteria to check your work and choose what to improve.

  • Calculations reconcile to the supplied records, with units and dates labeled.
  • Assumptions and missing information are visible, including the changed scenario.
  • The recommendation follows the evidence and explains an important limitation.
  • The six lesson outputs form a usable handoff that another learner can check.
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Before you begin

The idea in everyday life

Bridge coordination totals 4 hours at $20: three hours directly support workshops and one hour supports general office administration. The fictional restricted award still excludes coordination entirely.

The idea

Allocate a shared cost using a documented basis that reflects its use. Allocation alone does not make a cost permitted by a fund.

Follow along

Explain a shared cost allocation — worked practice

Allocate a shared cost using a documented basis that reflects its use. Allocation alone does not make a cost permitted by a fund.

Bridge coordination totals 4 hours at $20: three hours directly support workshops and one hour supports general office administration. The fictional restricted award still excludes coordination entirely.

  1. 1. Compute cost

    Multiply four hours by $20.

    You should see: Total coordination cost $80.

    The full cost must remain visible.

  2. 2. Allocate by hours

    Assign three quarters to program and one quarter to administration.

    You should see: Program coordination $60; administration $20.

    The basis follows recorded time.

  3. 3. Check funding

    Keep all $80 assigned to unrestricted donations under the award terms.

    You should see: The allocation does not change fund eligibility.

    Purpose allocation and funding permission are separate decisions.

  4. 4. Document method

    Record the time basis and verify shares sum to $80.

    You should see: $60 + $20 = $80 with no double charge.

    A reviewer can reproduce the allocation.

Now change one thing

Shared support costs 120 and recorded use is 75% program. Enter program share.

Your work

What to finish

A documented shared-cost allocation and funding check.

Common mistake

Watch for this

Assuming a program label automatically authorizes a grant charge.

How can I tell I understand it?

Explain your calculation or classification and reproduce the changed case without copying the worked result.

Try 3 questions

Quick knowledge check

Answer all 3 questions. Get at least 2 right and the lesson completes automatically.

Not yet passed

You’ll get an explanation for each answer. Signed in? Your results save to your account.

1A shared bill is 200 and program use is 60%. Program allocation is?
2A fund excludes rent. Does allocating rent to the program make it eligible?
3Allocated shares of a $100 bill are $70 and $50. What needs fixing?
0 of 3 answeredApply the lesson to a short question, then review the explanation.
3
Finish this lesson

Pass the check. We’ll save the progress.

Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.

Go to the knowledge check
Optional course overview video · same video as Lesson 1
EdspiraIntroduction to Budgeting (Managerial Accounting)YouTube
Optional course overview

Introduction to Budgeting (Managerial Accounting)

From Edspira. Watch here or open it on YouTube .

Optional course overview. Follow the written steps below at your own pace.
Tools, templates, and lesson sources

Tools and templates

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Sources and further reading

Explore the references behind this lesson.

Planning and Writing an Annual Budget
Source & access notes · checked 2026-09-12

Inspected income/expense estimates, restricted funding columns and budget review. Historical legal and salary examples are not adopted.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

2 CFR 200.403: Factors affecting allowability of costs
Source & access notes · checked 2026-09-12

Inspected current federal-award principles. Applied only as an example of rules to check, not universal nonprofit requirements.

Access: Public page inspected without a sign-in; linked services may have separate requirements.

Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.

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