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      Allocating joint fundraising expenses among participants

Example scenario
        
        Allocating joint fundraising expenses among participants After gross proceeds are allocated, the joint fundraising representative must calculate each participant’s share of expenses based on its actual share of gross proceeds. Example At the start of the fundraiser, Committees A, B and C agreed to allocate 25 percent of proceeds and expenses to Committee A, 25 percent to Committee B and 50 percent to Committee C. Committees A, B and C raise $50,000 in gross proceeds and spend $10,000 in expenses, leaving $40,000 in net proceeds. The joint fundraising representative allocates $10,000 (20 percent) in gross proceeds to Committee A and $2,000 (20 percent) in expenses;
    Committee A’s net proceeds equal $8,000. Because the joint fundraising representative must reallocate some contributions, Committee A is actually allocated 20 percent of gross proceeds; Committee B, 35 percent; and Committee C, 45 percent. The fundraising representative must allocate the joint
    fundraising expenses, $10,000, on the same basis: $2,000 to Committee A, $3,500 to Committee B and $4,500 to Committee C.


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