Functional Allocation of Joint Activities

Certain activities and events satisfy multiple goals of the organization, and we allocate the costs of these activities and events to the appropriate functional expense category using the most reasonably available allocation base. These joint activities and events meet the content, purpose, and audience criteria of the U.S. Accounting Standards Code for joint cost allocations (ASC 958-720), and have been independently audited. We strive to always provide our stakeholders a clear understanding of our financial position and results, and this memo is one of the many ways through which we do so. Specific joint cost activities and events treated in this manner are described in more detail below.

Our gala events are held throughout the state and throughout the year as a celebration of our accomplishments with our stakeholders, as an outreach to the general public to tell them about us and get them more involved in the fight for equality, and to update all attendees on the “State of the State”: legislative notes, progress on litigation, grassroots efforts, program updates and the current issues that disproportionately affect Florida’s LGBTQ population. Like most charitable galas, we have a fundraising goal for each of our galas that is largely met through individual and corporate sponsorships, and through ticket sales at most galas. We always give free tickets to our major donors, college students, and anybody in need who wants to attend. We invite politicians, business owners, corporate leaders, and the general public. Our main gala goals are to celebrate, educate, and call to action. With all this in mind, gala costs are evenly split between fundraising and programs in our audited financial statements and in the information returns we file with the Internal Revenue Service.

We have collaborated for many years with a progressive phone canvassing organization to help us have conversations with another segment of our community: the people we meet at Pride Celebrations and other public events who express an interest in learning more about us and want to get involved with our work. It can be difficult to have this conversation in the midst of a street festival, so high quality follow-up phone calls with our trained canvassing team have proven effective in educating these prospective members and getting them involved in ways that are meaningful for them. To help offset the cost of these calls, a small donation is requested at the end of each conversation. As a result, this activity is considered a joint activity, and the costs are allocated ⅓ to fundraising and ⅔ to outreach & education. This breakdown is periodically evaluated and adjusted based on average call conversations.

We welcome questions on this or any other financial issue. Please contact our Director of Finance & Accounting, Patsy Taylor, at [email protected] with any questions you may have.