Budget Development Guidance Request

An executive director is asking for guidance or assistance in transitioning her nonprofit from a line item budgeting process to a functional expense budget (at the suggestion of her auditors). She is looking for help in translating the nonprofit's operating expenses into the functional categories. Does anyone have any suggestions or resource recommendations? Please post them here.

Some suggested resources:

• Alliance for Nonprofit Management offers a great overview of this issue and offers a concrete example here: The Helpful Organization: A Sample Cost Allocation Methodology
• New York State Society of CPAs offers the following article