Program Expense Allocation Policy

The Viviscent Wellness Foundation (“VWF”) is committed to transparent, accurate, and responsible financial reporting. This Program Expense Allocation Policy outlines how expenses are categorized, allocated, and tracked across program services, management and general operations, and fundraising activities.

1. Purpose

This Policy ensures that VWF:

• Accurately reflects the true cost of delivering programs and services
• Complies with nonprofit accounting standards and regulatory requirements
• Provides transparency to donors, partners, and stakeholders
• Supports informed decision‑making and responsible resource allocation

2. Expense Categories

All expenses must be assigned to one of the following categories:

• Program Services: Costs directly related to delivering VWF programs and mission‑driven activities.
• Management & General: Administrative, operational, and governance‑related expenses.
• Fundraising: Costs associated with donor engagement, campaigns, and sweepstakes operations.

3. Direct Costs

Direct costs are expenses that can be clearly attributed to a specific program or function. Examples include:

• Program‑specific supplies or materials
• Staff time dedicated exclusively to a program
• Vendor or contractor costs tied to a specific initiative
• Event‑specific expenses

4. Indirect Costs

Indirect costs support multiple programs or organizational functions. These may include:

• Rent, utilities, and shared office expenses
• Technology infrastructure and software
• Administrative staff salaries
• Insurance and compliance costs

Indirect costs must be allocated using a reasonable, consistent, and documented methodology.

5. Allocation Methods

Allocation methods may include:

• Time Allocation: Based on staff timesheets or activity logs
• Usage‑Based Allocation: Based on actual consumption of resources
• Proportional Allocation: Based on program size, budget, or output metrics

All allocation methods must be applied consistently and reviewed periodically for accuracy.

6. Documentation Requirements

All expenses must be supported by appropriate documentation, including:

• Receipts and invoices
• Timesheets or activity reports
• Contracts or agreements
• Allocation worksheets or justification statements

7. Review and Oversight

The Finance Team and organizational leadership are responsible for:

• Ensuring accurate classification and allocation of expenses
• Reviewing allocation methods annually
• Maintaining compliance with accounting standards and audit requirements

8. Policy Review

This Policy will be reviewed periodically and updated as necessary to reflect changes in accounting standards, regulatory requirements, or organizational needs.

Contact Us

For questions regarding this Program Expense Allocation Policy, please contact:

Email: compliance@viviscentwellnessfoundation.org
Phone: 205‑460‑5305