Sometimes, determining whether a condition became worse because of the natural course of the illness, or because of a side effect of the medication the patient is taking can be difficult. (For example, both the infection causing a sore throat and a reaction to medication can cause nausea.)
DEFINITION of 'Overhead'. An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers.
Takeaway for board members: Talk with the organization's auditor or accounting advisor -- or ask the Board Treasurer to do so -- to be sure your nonprofit is using one of the acceptable allocation methods that minimize your Management & General and Fundraising expenses. 4. Sometimes more overhead = higher efficiency.