Administration or Operating Costs
Our Global Program hires local people to be our Ambassadors to help us run our social entrepreneurship programs world-wide. They are part manager, part teacher and mentor. Can someone tell me if this position would be considered administration in the grant writing process or can their compensation be considered operation cost.
Thank you in advance for expertise and time.
Best Answer
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Hello there, @LindaEkblad...
To my mind this would fall under Operational Costs, as it would be considered "Staff Salary" and thus part of your overhead or operational costs.
From the Small Business Chronicle:
"Operating expenses are costs expended by a small company by each of its different departments to produce a product or services for customers.
Administrative expenses are costs incurred by a small business on a more general basis and not associated with a specific department. These expenses are grouped with individuals who perform non-technical support activities for a small business, including secretaries and receptionists. One administrative expense example would be the salaries and benefits for secretaries and receptionists."
Administrative Expenses also fall under the larger umbrella of "Operational Costs", so it looks like you can classify them as such.
Ok, hope this helps!
2
Answers
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Hello there, @LindaEkblad...
To my mind this would fall under Operational Costs, as it would be considered "Staff Salary" and thus part of your overhead or operational costs.
From the Small Business Chronicle:
"Operating expenses are costs expended by a small company by each of its different departments to produce a product or services for customers.
Administrative expenses are costs incurred by a small business on a more general basis and not associated with a specific department. These expenses are grouped with individuals who perform non-technical support activities for a small business, including secretaries and receptionists. One administrative expense example would be the salaries and benefits for secretaries and receptionists."
Administrative Expenses also fall under the larger umbrella of "Operational Costs", so it looks like you can classify them as such.
Ok, hope this helps!
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Thank you Josh, it was very helpful!
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