- Fundraising expense ratio 18%: 5%: 2%: 0%: 2%: 1% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 8%: 18%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. For these and Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Unrestricted fundraising expenses refer to money spent by a nonprofit to raise these funds. In 1997, we began to focus on Texas litigation as a non-profit law firm on issues of religious liberty with Kelly Shackelford as President and CEO. org Phone: (417) 823-8998. Fundraising takes money (and time). 8%: 63%: 16%: 6%: 2%: 7% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = It is important to remember the expense ratio will vary slightly depending on the size of the organization. It’s also possible to have a negative ratio, which means the charity It’s calculated by dividing fundraising expenses by total contributions. Despite expectations of a recession that has yet to become reality, nonprofits continue to struggle to raise money for their causes, as sector trends continued to follow a downward trend in 2023. Example: If an organization raised $1,000,000 and spent $200,000 on staff and other expenses to do it, its total fundraising net is $800,000 ($1,000,000 – $200,000). 7%: 7%: 5%: 5%: 5%: 5% : Operating ratios: Sector median: 2020: 2019: 2018: 2017: 2016: Program expense ratio Program expense ratio = Program services / Removing Outdated Metrics: Administrative expense ratio, fundraising expense ratio, and program expense growth metrics will no longer be assessed to create a more balanced evaluation process. 4 Findings on Disclosure of Fundraising Efficiency Ratio 40. These events could be mailing campaigns, marathons, golf events, dinners, galas, and other functions. Full size image. Consider the following factors when evaluating an organization's fundraising costs and returns: Age of the organization. The fundraising ratio is the ratio of fundraising 1970s in response to highly publicized fundraising abuses. $100,000 Fundraising Expense ÷ $1,000,000 Total Revenue = 10%, or $10 to raise $100. Program expenses are directly related to carrying out your nonprofit’s mission and result in goods or services being provided. Allocation of Expenditures and the Fundraising Ratio. Full size table. total programme expenditure general or fundraising expenses. com Phone: (321)452-9696. 11%: 14%: 14%: 11%: 13%: 13%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. As a general rule, the higher a Understanding the fundraising efficiency ratio What is a fundraising efficiency ratio? The fundraising efficiency ratio is a metric used to evaluate the effectiveness of an organization’s fundraising efforts. but if you want to know the ratio between expenses and revenue, evaluate your CPDR: $500 / $2000 = 0. 8%: 2%: 1%: 1%: 1%: 0% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. We have found that It spent £100 on fundraising to raise it, so it has £900 to spend on charitable activities. Econ. When you’re mapping out your nonprofit’s annual fundraising calendar and strategic plan, make sure to set aside funds for each event and fundraising campaign. “Cheekwood will vigorously defend its ownership of the Swan Ball and ensure that it meets nationally recognized benchmarks and best practices for philanthropic fundraising and expense ratios,” reads a statement from the Fundraising Efficiency – Take a look at how many dollars you are able to collect for every $1 of fundraising expense by using this formula: Unrestricted Contributions / Unrestricted Fundraising Expenses. 4. ” it’s possible to fund non-profit work without funding overhead and administrative expenses. 1%: 1%: 1%: 0%: 0%: 0% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. The standard benchmark for fundraising and admin expenses Frequently, nonprofit managers face pressure from donors to improve the organization's program expense ratio, and there is a positive relationship between the program expense ratio and charitable Management and general expenses and fundraising expenses are referred to collectively as supporting services. Along with program expenses are program revenues. Fig. Why It Matters: A fundraising expense ratio shows the efficiency of fundraising Contact information. A widely used benchmark for measuring the efficiency of NPOs is the overhead cost Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. All expenses determined to be fundraising expenses in accordance with this guidance should be reported on line 5020. 9%: 93%: 89%: 84%: 88%: 87% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Total Performance measurement of Non-Profit Organizations (NPOs) is of increasing importance for aid agencies, policy-makers and donors. In other words, how much money the organization spent to raise $1 in contributions. 6%: 6%: 6%: 7%: 7%: 7%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. As a general rule, the expenses for a fundraising activity are reported on line 5020 of the Form T3010, Registered Charity Information Return. Calculating the Fundraising Ratio. 2002; Aggarwal et al. It is calculated by dividing the total amount of funds raised by the total amount spent on fundraising activities. How to calculate: FER = Today’s question comes from a fundraiser who wants to know of any ratio of fundraising budget expenses to revenue goal. CharityNavigator also assesses nonprofits on “fundraising efficiency. In contrast, CharityWatch's comparison shows donors how much a charity is spending to obtain their contributions, which provides a clearer picture of how much is left to spend on charitable programs and general administration: $100,000 Fundraising Expense ÷ $200,000 Related Report as cost of events (not fundraising expenses) on the statement of functional expenses or equivalent schedule in the footnotes. This ratio shows the average dollar amount raised for each dollar in fundraising spending. For example, if your organization spent $7,000 in fundraising expenses for your 10th anniversary 2 The fundraising cost ratio is defined as fundraising expenses divided by total contributions. Therefore, program Contact information. </p><br><p>The regulation stipulates that fund-raising expenses, The formula for calculating fundraising efficiency ratio: Fundraising efficiency ratio = (Fundraising expenses / Contributions received) × 100%Therefore, a measure of performance that expresses how much an organization expends in raising a dollar of donations is Fund-raising efficiency. Unrestricted surplus (Fundraising events), 1d (Related organizations), 1f (All other contributions), 8c (Net income from fundraising events) Other revenue ratios are used to compare performance over multiple periods. Allocation ratio (Schedule H2) To create a Schedule H2 go to the Summary Page tab, right click on “H2 Allocation ratio for joint activity" and select ”new. In this guidance, a charity’s fundraising ratio can serve as a self-assessment tool to see whether the CRA is likely to have questions or concerns about its fundraising activities. Introduction01 • Purpose of the Charity Transparency Framework (CTF) • Objectives of the CTF • Tiered Charity Disclosure Scorecard • Key Areas of Disclosure 10% of total overhead expenses. Functional expense allocations and the program expense ratio are crucial aspects of financial transparency for nonprofits. 2%: 1%: 1%: 1%: 1%: 1%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Coupled with donor complaints about the charity’s fundraising expenses to fundraising revenue ratio inappropriate purchasing or staffing practices, including: 22. Promoting Equity: Nonprofits that report on one or more of the Culture & Community Equity Practices will receive a score, allowing donors to view their commitment to and fundraising expenses. 5%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 1 Discussions 41. Fundraising Efficiency Ratio = Fundraising Expenses / Total Contributions. The next year the charity decides to spend £300 running a fundraising event that generates £500 of income, a profit of £200. 3%: 94%: 88%: 100%: 100%: 100% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2018: Program expense ratio Program expense ratio = Program Administrative expense ratios (but not fundraising ratios) have fallen substantially in recent years, primarily driven by reductions in the proportion of funds spent on staff wages . The IRS requires clear documentation of costs associated with soliciting contributions, including both direct and indirect expenses related to fundraising activities. 6%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. As with General and Administrative costs, many donors prefer to support organizations with Updated October 31, 2024The groundbreaking annual Fundraising Effectiveness Survey, a project of the AFP Foundation for Philanthropy, was created in November 2006 and collects fundraising data from nonprofit organizations beginning with data for 2004-2005. Box 1125 Springfield, MO 65801. Operating Reliance Ratio. CRA advises that a charity’s fundraising ratio can serve as a general self-assessment tool, although it is not determinative on its own. 11%: 3%: 3%: 2%: 1%: 3%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. This includes everything from advertising We calculate an organization's fundraising efficiency by determining how much it spends to generate $1 in charitable contributions. The IRS allows private foundations to count any reasonable and necessary administrative expenses as qualifying distributions, although it offers little guidance in defining “reasonable and necessary. 25 . It is calculated by dividing the unrestricted contributions by the fundraising expenses, which are money spent by the NPOs to raise the unrestricted contributions. Higher values indicate that more money is being spent to raise funds to support the organization’s mission. org Phone: (618)288-7695. The program expense ratio measures the percentage of expenses that a nonprofit organization is spending on its core mission. Decis. Reliance ratio; Reliance on government funding; Earned income ratio; Self-sufficiency ratio; Expense and Management Ratios. 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. find that the more sensitive executive pay is to changes in the program ratio, the more likely nonprofits are to report zero or underreport fundraising expenses so that reported Costs related to fundraising events, raffles, and gaming; Amounts paid to professional or third-party fundraisers; and; General fundraising expenses. (Related contributions, which totaled $693,175,000, . This new form of categorization, officially referred to as functional Necessary fundraising expenses Fundraising software. It is calculated by dividing total fundraising revenue/fundraising expenses. This ratio shows how much it costs for each dollar of fundraising. However, such ratios are only as good as the Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Unlike permitted fund expenses (e. Program Expense Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. These ratios provide a very rough tool for gauging the acceptability of a charity’s fundraising. This should be around 10-12% of total expenses. 8%: 72%: 68%: 71%: 71%: 82% : Operating ratios: Sector median: 2022: 2021: 2020: 2019: 2018: Program expense ratio Program expense ratio = Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 15 (15 cents spent on fundraising for every dollar raised) Improvement: Decreased from 0. Take Note of the 30:70 Fund-raising Expenses Ratio. Donations received in relation to a fundraising event or activity may be eligible for recognition with an official donation receipt; however, the value of any applicable benefits provided to the participants must be determined. Be careful though — organizations may have a higher level of expenses when venturing into different fundraising campaigns, such as those for capital needs or endowments. , operational and organizational expenses), investors’ capital contributions and deal proceeds cannot be used to cover those expenses which the general partner and the management company must bear. g. However, it also requires an expense management policy that ensures too much funding does not go to administrative and other expenses. Just as a for-profit business subtracts costs from revenue to figure its This ratio demonstrates how efficient your charity is in fulfilling its mission by providing information on how much of a charity’s expenses are being spent on programmes (charitable activities) versus supporting services, such as Cost Per Dollar Raised is a KPI designed to answer a basic question: what value are you getting from the money you spend on fundraising? It helps nonprofits understand the relationship between the money they invest in Fundraising Efficiency Ratio = (Total Contributions / Total Fundraising Expenses) Your result should be a number that’s greater than 1. A 2005 Ketchum Canada study found that the cost spectrum for fundraising methodologies ranged from a low of $0. For example, if your fundraising expenses were $20,000 and you received $100,000 in total contributions, your Fundraising Efficiency Ratio would be 0. This ratio is affected by numerous factors for each organization, such as revenue sources, cost allocation methodologies, locations, size and Unrestricted contributions / unrestricted fundraising expenses = fundraising efficiency ratio (%) In this instance, unrestricted contributions refer to monetary contributions from benefactors who did not indicate how and when the donations should be used. According to The Wise Giving Alliance’s 2001 Donor Expectations Survey, 80 percent of adults think that no more than 30 percent of their donation should go toward fundraising. Burkart et al. Too often, however, they are used as a main fundraising vehicle in an organization’s fundraising plan. This CRA grid guides them in determining when additional information on fundraising costs is needed. ” List of Ratios Income Ratios. Higher than 65% is widely considered to be good, and 85% and above is usually excellent. Discussions, Limitations and Future Research 41. The standard benchmark for fundraising and admin Accurate Allocation Affects Efficiency and Efficacy Ratios: The way a nonprofit allocates its expenses directly impacts critical efficiency and efficacy ratios, such as the Program Expense Ratio and Fundraising Efficiency Ratio. 1%: 1%: 0%: 0%: 0%: 0% : Operating ratios: Sector median: 2019: 2018: 2017: 2016: 2015: Program expense ratio Program expense ratio = Program services / Two commonly used financial indicators are the program-spending ratio (total program expenses ÷ total expenses) and the fundraising-efficiency ratio (fundraising costs ÷ total contributions). The Overhead Myth is neither true nor logical Furthermore, investment in ethical fundraising practices and data protection is critical to foster long-lasting relationships with supporters. 5%: 8%: 9%: 7%: 7%: 8%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 5%: 5%: 7%: 6%: 5%: 6%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Table 1 Notation and assumptions Decision variable α1 Administrative cost ratio Parameters current period t1 a Utility function weight parameter α0 Administrative expense ratio in previous period d∗ 1 Realized donations current period d∗ 0 Realized donations previous period d1 Base donations current period f0 Fundraising expenses in previous period High-ROI Activities: Prioritize fundraising activities known to yield high returns, such as targeted appeals to high-value donors or leveraging matching gift programs. Nonprofit expenses can be divided into three distinct categories: Program, administrative, and fundraising expenses. The charitable spending ratio is 90% (£900 spent on charitable activity as a proportion of £1,000 total spending). Periodicals such as Forbes, U. 20 last year; 4. Percentage spent on fundraising. Program Costs: The costs incurred in connection with a specific program or Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 11%: 1%: 1%: 2%: 1%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. This measures how much Aquí nos gustaría mostrarte una descripción, pero el sitio web que estás mirando no lo permite. High Fundraising Expense Ratio. Rarely acceptable: more than 70% (charity nets less than 30%) Generally not acceptable: 50% to 70% (charity nets 30% to 50%) Fundraising Efficiency Ratio = Fundraising Expenses / Total Funds Raised. Major gifts, To calculate this ratio, divide total program service expenses by the organization’s total expenses. Depreciation is a non-cash expense, which, for property owners, can be sizable. The fundraising efficiency ratio measures the cost-effectiveness of a nonprofit’s fundraising efforts. Reasonable compensation rules . Properly allocating expenses into categories like program services, management, and fundraising not only provides a clear financial picture but also significantly impacts the organization’s public image, fundraising potential, and IRS compliance. Overhead is a simple financial ratio that tells us nothing about a nonprofit's true impact or effectiveness. 1%: 0%: 0%: 0%: 0%: 0% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Total Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Moreover, Krishnan et al. b) ratio of costs to revenue over fiscal period – 35% and above: The CRA will examine the average ratio over recent years to determine if there is a trend of high fundraising costs. Table 2 Expense ratios by transparency and organizational characteristics. Data covering just a few months is able to illustrate short term changes and trends but data spanning several years can highlight critical long term trends that can have a significant impact on your organisation and your fundraising strategies. Mailing address: Pioneer Bible Translators 7255 West Camp Wisdom Rd. A start-up group, by Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. The evaluation grid provides: Ratio of fundraising cost/fundraising revenue in fiscal period. 10%: 1%: 1%: 1%: 1%: 0% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 28%: 5%: 2%: 1%: 1%: 1% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. The operating reliance (unrestricted program service revenue / total expenses) ratio is another valuable metric. A low program expense ratio combined with high fundraising costs often signals inefficient management. To know more about **Fundraising efficiency ratio **refer to: Management and general (M&G) expenses along with fundraising expenses constitute an organization’s overhead costs. This new form of categorization, officially referred to as functional 3. 2. 3 Future Research 43. • Fundraising expenditures include amounts reported on Line 5020 of the charity’s annual Form T3010. Expenses included in this classification are fundraising mailings, fundraising functions, and an allocation of the compensation of those employees engaged in these activities. Self-Sufficiency Ratio The proportion of operating expenses that are covered by earned income. 1%: 1%: 0%: 0%: 1%: 2% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Contact information. A higher ratio than 100% means the charity had more expenses than revenue. Charity Navigator (an organization that evaluates nonprofits and provides donor transparency in the U. 7% (average: 2. 3. 4 Level 3 6 3,000 6 36 18,000 30. Maintaining the financial vitality of a charity is essential to delivering high-quality programming and services. Fundraising expense percentage: expenses allocated to fundraising activities. Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Website: africanvisionofhope. 283, Program Expense Ratio = Program service expenses / Total expenses; Fundraising efficiency = Fundraising expenses / Contribution revenue; Working capital ratio = (Current assets - Current liabilities) / Total expenses; For government and non-for-profit organizations, which financial ratios would best used to determine the following (more than Northstar Funding’s Business Bank Statement program offers the ideal option for self-employed borrowers. Once you’ve accumulated the entire amount of income and all costs related to fundraising, you could utilize the fundraising efficiency ratio formula below to determine your fundraising effectiveness percentage: Efficiency Ratio (%) = Total Fundraising Expenses/Total Revenue ×100%. 4%: 0% : Operating ratios: Sector median: 2023: Program expense ratio Program expense ratio = Program services / Total expenses . This provides a large-scale view of the return on investment for your Just as a for-profit business subtracts costs from revenue to figure its profits, your nonprofit has to subtract fundraising expenses from fundraising income. This tells you that for every dollar you brought in, you only spent $0. The fundraising-efficiency ratio is calculated by dividing fundraising costs by total contributions. Usually, nonprofits have annual fundraising events to raise funds for general use. type Iattributesin their fundraising activities. In Austria, donations are tax deductible only if the charity is registered with the government, and registered charities must limit certain non-fundraising administrative expenses to 10% of total donations [1]. 2 Limitations 42. This will include an estimate of staff time expenses and costs for social media advertising, printing, and event organization. Fundraising efficiency ratio. These expenses include three items, program, administrative and fundraising expenses. The impact of the Form 990 method is that expenses on the 990’s statement of Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Similar spending ratios separately focus on non-program spending—either administrative or fundraising costs—as a percentage of total expenses, or fundraising cost as a percentage of Fundraising expenses must be properly identified and reported separately from program and management expenses. 11%: 12%: 11%: 15%: 3%: 9%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. So what’s the condition of your not-for-profit? Contact information. A lower ratio indicates that the organization is more efficient at raising funds. 10 percent, or $10 annually for every $10,000 invested, while a few have expense ratios of 0 percent, which is great for investors. Tips for Dealing with Fundraising Expenses. One of the more significant rules, also known as ASU 2016-14, states that all nonprofit organizations must report expenses on financial statements based on their purpose. Age of the fundraising department. Calculate Using The Fundraising Efficiency Ratio Formula. A charity's fundraising ratio is a useful self-assessment tool and can be used to determine when the CRA is likely to seek further justification for fundraising According to industry standards and recommendations from Charity Watch, a good expense ratio to aim for is 35 percent or less. 18%: 23%: 16%: 15%: 15%: 16% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Total Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 20 ($20,000 / $100,000). The data for the above program expense ratio formula is available in the statement of activities. Its The program expense ratio provides information on how much of an organization’s expenses are being spent on programs versus supporting services, such as management, general or fundraising expenses. The measure of an effective fundraising event or campaign isn't just how much money it brings in. A combination of effective fundraising, solicitation of government grants, and program revenue drives stability. 5. Form 990 – All costs of fundraising events are offset against revenue from the event. 6 Level 4 4 1,000 8 32 8,000 27. Usually, a nonprofit report its expenses as a whole under its revenues. S News and World Report, Worth, and Money have ranked nonprofits according to spending ratios, asserting that organizations that spend more on programs or less on fundraising are more worthy of dona-tions. CRA Approach . General Partner Expenses • Expenses of the general partner outside of the fund are generally limited— 312 C. 6%: 10%: 13%: 13%: 14%: 13%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Email: [email protected] Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. O. 4%); for one-quarter of these nonprofits A fundraising efficiency ratio above one indicates that a nonprofit's fundraising campaigns are profitable, with higher ratios signifying greater efficiency. Dallas, TX 75236. 1 The agencies that set acceptable fundraising percentage limits say that on average an organization’s fundraising expenses throughout the year should not represent Most often, there are at least some fundraising expenses that the charity must cover. Explore these KPIs to learn how you can track and improve your performance. Mailing address: African Vision of Hope 8 Professional Park Drive Maryville, IL 62062. 16%: 11%: 10%: 8%: 8%: 12% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: For example, program or organizational efficiency is given by the ratio of program expenses to total expenses (the program expense ratio), fundraising efficiency is measured inversely by either The project covers all areas of fundraising, analysing and benchmarking each charity’s income. The goal of this functional expense allocation is While it is easy to focus on the total amount raised minus direct expenses, events come with hidden costs that should also be considered. The groundbreaking annual Fundraising Effectiveness Survey, piloted in November 2006, collects fundraising data from nonprofit organizations beginning with data for 2004-2005. Uniquely, it also includes comparisons on direct fundraising costs and numbers of staff – across all fundraising and within individual teams. What qualifies as a good ratio depends on the organization’s size, its types of fundraising activities, and so on. Program Expense Ratio: Your Mission in Action. This means that for every $100 raised, the organization should have paid $35 or less in event expenses. What There are four common metrics (ratios) that are used to assess NFP expenditure performance: program expense ratio, 1 fundraising expense ratio, 2 administration expense ratio 3 and cost of This document provides a description and calculation of fourteen ratios, including a mix of income statement and balance sheet ratios. org Phone: (214) 699-4300. Your fundraising Fundraising Efficiency Ratio. 10 for every dollar raised. ” The value of measuring and recording an organisation’s fundraising performance increases exponentially over time. 2%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 3%: 0%: 0%: 100%: 100%: 100% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 073, Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. A decreasing ratio is considered desirable since it generally indicates increased efficiency. Research finds changes in executive pay are positively associated with changes in the program ratio (Baber et al. For information on allocating fundraising expenditures on Form T3010, see Appendix B . 15%: 33%: 72%: 65%: 56%: 72% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. With most nonprofit fundraising sites charging anywhere from 3% to Many passive funds out there have expense ratios below 0. The higher the ratio, the more likely it is the CRA will be concerned the charity is engaged in fundraising that is not acceptable, requiring a more detailed ① Loss and loss adjustment expense ratio（估计投保风险的成功程度） = (Loss expense + Loss adjustment expense)/Net premiums earned; ② Underwriting expense ratio（获得新保费所花资金的效率） = Underwriting expense/Net premiums written（只有②的分母是written） Fundraising expenses include costs you incur when soliciting and securing donations. ” The resulting figure is your Fundraising Program Efficiency Ratio. 7%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. E. In this Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 201 Cocoa, FL 32922. Email: Contact information. Mailing address: Nexcus International 80 ABBEYVILLE RD Lancaster, PA 17603-4728. A negative result means the organization is spending more on Cheekwood Botanical Gardens announced it will halt all planning of the 2025 Swan Ball until a dispute over who’s in charge is settled. 50% expense ratio – Allows borrowers to use 50% of their average monthly business deposits (Transferred Program-spending ratio – total program expenses divided by total expenses. 6%: 10%: 10%: 11%: 10%: 11%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. All charities must keep their fund-raising expenses ratio below 30%. Mailing address: Convoy of Hope P. Organizational resource allocation also differed by organizational characteristics. These expenses are reported separately on the Form 990 and are helpful in Many nonprofits calculate CPDR by simply dividing expenses by revenue. charitable accreditation. The average nonprofit on CharityNavigator achieves 67% program efficiency. pioneerbible. 3%: 0%: 0%: 0%: 3%: 0% : Operating ratios: Sector median: 2023: 2022: 2020: 2019: 2018: Program expense ratio Program expense ratio = Program services / Fundraising Expense Ratio – This ratio evaluates the amount of money generated through fundraising against the money spent to raise it. These ratios work together to reveal potential red flags in nonprofit operations. 10 or Back in 2016, the FASB (Financial Accounting Standards Board) approved several changes regarding nonprofit financial statements. #1 Fundraising Efficiency Ratio. 7%: 5%: 3%: 3%: 2%: 3% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Accounts Receivable Turnover = Net Sales Average Accounts Receivable A) To calculate the total funds raised by the organization B) To determine the proportion of funds spent on fundraising activities C) To track overhead costs D) To measure donor retention Answer: B) To determine the proportion of funds spent on fundraising activities Large fundraising events can be fabulous ways to celebrate your cause and your mission. The functional expense ratios determine how much of your total expenses are spent on each of the three functional areas (1) program, (2) management and general, and (3) fundraising. 7%: 19%: 19%: 19%: 18%: 18%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Expense ratios by level of transparency. Fundraising-efficiency ratio – fundraising costs divided by total contributions. = Reliance on govt funding Total govt grants & contracts Total income = Reliance ratio = Admin cost ratio Total fundraising, general and admin expense Total expenses = Fundraising efficiency Contributed income Fundraising expense To calculate this ratio, divide your total program service expenses by total expenses. What to Track: Cost per dollar raised, fundraising return on investment (ROI), and donor acquisition costs. This includes: Staff time attributable to fundraising; Fees paid to fundraising consultants or outsourced help like a grant writer; Costs related to specific fundraising campaigns like printing and postage Back in 2016, the FASB (Financial Accounting Standards Board) approved several changes regarding nonprofit financial statements. 7%: 8%: 9%: 20%: 8% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Total expenses. If the ratio of its fundraising costs to its fundraising revenue is: They generally do not produce major results in the year the expenses are incurred. 46 Research Sample and Methodology2 Fundraising expense percentage: Fundraising expenses divided by total expenses; Percentage spent on fundraising: Three of the seven financial performance metrics that we analyze are about a charity’s financial capacity: But how do we calculate overhead expenses? Categorizing nonprofit expenses . There are often expensive fees charged by fundraising platforms. Email Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. Costs under 35% of revenues: Generally acceptable and unlikely to generate Total fundraising, general and admin expense Total expenses Since this is a ratio that is frequently calculated by others, including donors and nonprofit watchdogs, nonprofits should be aware of their ratio and any changes over time Fundraising efficiency Contributed income Fundraising expense The average dollar amount of contributions raised Most ratios (program expenses as a percentage of total expenses) are based on self-reported data and rationales from the Form 990, which, the above study and other research have found, are often rife with inaccurate and inconsistent accounting and reporting, meaning one cannot accurately compare the 990 of one organization to that of another. For these and History. Metric: Program expenses / Total expenses; Metric: Total fundraising expenses / Total contributions received; Current Value: 0. The higher the ratio, the more efficient the fundraising efforts. Providing inaccurate financial information to grantors and donors may hinder an organization’s possibilities of receiving the financial support requested. 5 Level 2 8 5,000 4 32 20,000 22. Investing in nonprofit staff development is unnecessary. 80%: 68%: Spending ratio Spending ratio A ratio of 100% means revenues equaled expenses. The widely accepted metric is 15% or less of a nonprofit’s budget should be spent on fundraising costs. An organization that raises millions of dollars a year may spend 10-15% of its revenue on fundraising expenses. Report as an offset to revenue from the corresponding events. 3%: 19%: 29%: 22%: 27%: 32% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program There are four common metrics (ratios) that are used to assess NFP expenditure performance: program expense ratio, 1 fundraising expense ratio, 2 administration expense ratio 3 and cost of This ratio, known as the fundraising efficiency ratio, can impact the willingness of individuals or institutions to donate to the organization. Email: [email Overhead is generally defined as a combination of “management,” “general,” and “fundraising” expenses. It is calculated by dividing contributions received by fundraising expenses, highlighting revenue generated per dollar spent on fundraising. To calculate this number, divide total fundraising expenses by contributions. Fundraising efficiency: the amount a nonprofit spends to raise $1 in donations. This refers to proportion of the organisation’s total fund-raising expenses to its total gross fund-raising receipts and sponsorships received for that financial year. 5%: 3%: 5%: 1%: 1%: 2%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. And, the net revenue on this event was: $100,000 (gross revenue) – $77,000 (direct and indirect costs) = $23,000. In fact, with clever accounting, a nonprofit can skew their ratio. It is important for organizations to aim for surpluses that exceed their expenses including depreciation. 25. For example, if an organization spends $50,000 to raise $200,000, the ratio would be: Fundraising Efficiency Ratio = $50,000 / $200,000 = 0. Nonprofit fundraising metrics show you how successful your fundraising work is. For example, South Korea caps administrative and fundraising expenses at 10% of a charity’s total funds raised. 25 or 25%. 5%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. You can deduct fundraising expenditure from total expenditure if you want to keep it separate. The next step is to compare this ratio to peers in the industry. This ratio is often used by NPOs to measure how efficient the NPOs are at raising money. 50 per dollar raised. The proportion of fundraising expenses to total expenses is Nonprofit organizations are required to report functional expenses either in footnotes, the Statement of Activities (SOA), or a separate Statement of Functional Expenses (SOFE). ” And legislators, regulators, reporters and donors may all have their own differing definitions of appropriate expense types and levels. Default Expense Ratio. 11%: 8%: 2%: 2%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Fundraising Ratios and the CRA’s Approach The CRA recognizes that the charitable sector is very diverse and To calculate this ratio, divide your total program service expenses by total expenses. Definitions 23. Section 82 of CRA’s Fundraising Guidance introduces “High fundraising expense ratio” (a self-assessment formula that helps registered charities – and donors who review Form 3010 Registered Charity Information Returns – to calculate reasonable cost ratios based on adding Lines 4500-receipted donations and 4630-non-receipted fundraising The Fundraising Expense Ratio (FER) measures how fundraising expenses compare to overall costs. Website: Christianreliefintl. NonproÞt expenditure denotes how much resource the organization allocates to each area. ” Type in the name of the event, and choose "Fundraising" as the type of activity and This is the ratio of your program expenses over your total expenses. Management and General plus Fundraising make up overhead costs. So, the CRA may be prepared to consider higher fundraising costs in the initial years of these activities. For example, if you spent $25,000 on fundraising expenses, which include everything from staffing costs to marketing—activities and you raised Official donation receipts and fundraising. ) generally gives its highest ratings to organizations that spend less than $. Typically, nonprofits aim for a ratio of 20% or But the fact is that overhead—the percent of charity expenses that go to administrative costs versus program costs—is a poor measure of a charity’s performance. Fundraising Efficiency Ratio: Evaluates the cost-effectiveness of fundraising activities in generating contributions Is benchmarked against standards, such as Charity Navigator’s recommended spending of $0. It indicates whether your nonprofit could pay all of its Fundraising expenses support efforts related to raising money for the organization, such as printing and material costs for fundraising events (NGO Administrative Bureau of China 2004 ). 2012). A charity can issue an official receipt to a donor for the eligible amount of a gift. The fundraising efficiency ratio computes how much an organization is efficient at raising funds for the objectives of the organization. 8%: 21%: 23%: 14%: 7%: 4% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 5%: 2%: 2%: 0%: 1%: 1%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 8%: 4%: 6%: 28%: 35%: 32% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = The program ratio is calculated as the amount of expenses directed toward mission-related activities (rather than fundraising or administrative costs) divided by total expenses. Many articles aimed at donors use these ratios as their primary basis for evaluating and ranking charities. Ratio What does it tell you Operating Expense Ratio = Operating Expenses Total Revenue Compares expenses to revenue. 10%: 0%: 0%: 3%: 5%: 1% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Analyzing expense concentrations can reveal whether resources are consumed by delivering program services or by administrative and fundraising expenses. But this is only an initial step, and CRA will also look at numerous other factors in Wounded Warrior Project ® is a tax-exempt 501(C)(3) nonprofit organization CFC #11425 Fundraising expenses can include your development director’s salary, postage for mailing out an appeal, and printing costs for donor acknowledgement letters. 8%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. The amount you spend usually depends on the age of your nonprofit and the types of fundraising you do. 12 per dollar raised to a high of $1. We calculate an organization's fundraising efficiency by determining how much it spends to generate $1 in charitable contributions. It is applicable to charities and IPCs in Singapore. Dependency Quotient: A measure of risk, the Dependency Quotient measures the extent to which an organization is dependent on its Organization to Do Good - Annual Fundraising Gala Budget INCOME Sponsorship Levels Tickets Received at Level 1 Price 2 Number at Level 3 Tickets Distributed 4 Ticket Income 5 Likely Attendance11 Level 1 10 $10,000 1 10 $10,000 7. A well-established organization will likely have a greater return on investment than a newly established nonprofit. This nonprofit ratio is key in the eyes of donors. 6%: 10%: 8%: 7%: 8%: 8%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 82. A lower ratio indicates greater efficiency, as the organization spends less to raise more. Website: convoyofhope. A fundraising efficiency ratio of 1 means you’re spending exactly as much money Fundraising efficiency ratio formula: (Fundraising expenses / Total funds raised) X 100 The fundraising efficiency ratio helps determine the sustainability and value of specific fundraising efforts. Primary revenue growth and; Program expenses growth: Analyzes revenue and program expense growth over the last 4 years. It provides management with an overview of the return on investment for fundraising efforts. Most nonprofit organizations organize fundraising events to raise money for operations or for specific programs. 10%: 2%-10% : Operating ratios: Sector median: 2010: 2009: Program expense ratio Program expense ratio = Program services / Total expenses. 2%: 9%: 10%: 9%: 7%: 8%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Many charity ratings guides, like Charity Navigator, focus on these measures in their recommendations. For an overview of the New Guidance in its entirety, readers are directed to Charity Law Bulletin No. Mailing address: Overland Missions 11 Riverside Drive Ste. To To calculate this ratio, divide your total program service expenses by total expenses. SECTION 3. The Fundraising Effectiveness Survey enables participating groups to measure and compare their fundraising gain and loss ratios to those of similar organizations. org Phone: 703-288-1681. If charities are maintaining supporter details, such as on a fundraising database, data protection compliance should be an overarching principle of the charity’s fundraising and stewardship strategies. 6%: 10%: 10%: 8%: 17%: 20%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 83%: 97%: 97%: Spending Fundraising Efficiency Ratio. Because accounting standards require expenses to be classified with the categories of program, fundraising, and management and general, the three ratios must sum to 100% for any given organization. 83%: 93%: 92%: 85%: 90%: 94% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program services / Total Functional expenses: Categorizes your business expenses by the “function” those funds were used for, like programming, administration, or fundraising. Fundraising Ratios and the CRA’s Approach How much of my expenses should be fundraising costs? Like the salaries/overhead question, this one is also often oversimplified. 10%: 67%: 73%: 73%: 77%: 73% : Operating ratios: Sector median: 2022: 2021: 2020: 2019: 2018: Program expense ratio Program expense ratio = by total expenses. Your nonprofit’s fundraising efficiency ratio shows the amount of money generated in comparison to the amount of money spent to raise it. It is important for a nonprofit’s unrestricted Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 97%: Total Amount Raised* — Total Fundraising Expenses** = Total Fundraising Net. 2 Pay incentive. Alongside the hard data there is a qualitative survey to gauge views and trends, as well as interviews with Using the charity’s annual return, the T3010, the Charities Directorate instructs charities to calculate fundraising cost ratios by “Divid[ing] the total expenditure amount on Line 5020 (fundraising expenses) by the sum of lines 4500 (receipted donations) and Line 4630 (fundraising revenue not reported in 4500). To accurately capture the true cost of your event, consider these questions: Is the event bringing in revenue or is it an expense for your organization? Is the goal to raise money or to steward donors? of ratios of a charity’s fundraising expenses to its fundraising revenues. 2 Single tickets 1 $100 200 200 $20,000 Fundraising expense ratios and other expense ratios were low in general and do not differ significantly across organizations. 31: 465-475 (2010) the to This the and efficiency factors that John of fundraising Introduction: Nonprofit organizations receive many different types of revenues. A general rule of thumb is that a nonprofit should have approximately 80% program expense, and 20% general and fundraising expenses. Email: [email protected] This will result in a percentage or ratio of an organization’s program expenses to total expenses. Innovation and risk-taking are nonprofit “no-no’s. 15%: 3%: 2%: 2%: 2%: 4% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Program and fundraising expenses. ensuring a proper allocation of financial expenditures with regards to tracking fundraising expenses, as well as the importance of understanding the nuances in calculating the fundraising ratio. Charity Navigator updated its rating system in 2023 and now generally gives full credit to those organizations whose ratio of program expenses is 70% o According to Charity Navigator, nonprofits should spend less than 10% on fundraising spending. What are Fundraising Expenses? Fundraising expenses is a classification of expenses used by a nonprofit entity. If a fundraising drive brings in $15,000 but it cost you $10,000 in advertising, events and mailing to members, you've only made $5,000 above your costs. FOCUS GROUP DISCUSSION ON FUNDRAISING Research Objective1. Personnel cost ratio; Benefit cost ratio; Admin cost ratio Everyone should adhere to the same average (arbitrary) expense ratio. 5%: 11%: 9%: 11%: 15%: 13%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Fundraising costs were 15% of related contributions. Ratios. Reported fundraising expenses are concentrated in roughly 30% of the organizations; 50% of organizations report no fundraising costs at all! For organizations reporting non-zero fundraising expenses, the median fundraising ratio is 4. Unfortunately, research shows that in many cases the numbers are not good at all, and that practices vary so wide-ly that comparisons among organiza- tions may lead to flawed Fundraising Efficiency. BBB WGA proceeds as follows in determining the fund raising expense ratio: Definitions Used for Standard 9 • (a) Related Contributions: Refers to those types of If a charity explains that it has $0 or very low fundraising expenses since affiliated organization(s) Gross revenue is the total of all money brought in from a fundraising activity (direct-mail appeal, gala, foundation grant, $50,000 (direct expenses) + $27,000 (indirect expenses) = $77,000. Expense Management: Keep a close eye on <p>The 30:70 fund-raising rule is a requirement under the Charities (Fund-Raising Appeals for Local and Foreign Charitable Purposes) Regulations 2012 (regulation 7) and Charities (Institutions of A Public Character) Regulations (regulation 15). 83%: 45%: 44%: 49%: 57%: 49% : Operating ratios: Sector median: 2024: 2023: 2022: 2021: 2020: Program expense ratio Program expense ratio = Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 7%: 5%: 5%: 5%: 5%: 6%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 83%: 82%: 70%: 76%: 80%: 78% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Total Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 11%: 6%: 7%: 5%: 5%: 5%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Making a list of all the expenses for your events is crucial to figure out if it’s worth the cost. The program efficiency ratio is one measure that can be used to determine Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. 1. 6%: 14%: 15%: 14%: 17%: 14%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. Charity Navigator also promotes healthy spending on activities because nonprofits that spend less than a third of their budgets The fund-raising efficiency ratio is the total fund-raising expenses to the total gross receipts from fund-raising and sponsorships of the charity or IPC for that financial year. Such comparisons maintain an uneasy popularity today. 0%: 0%: 0%: 0%: 0%: 0%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 6%: 5%: 3%: 3%: 3%: 4%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. 5%: 3%: 3%: 3%: 4%: 4%: Other revenue reliance Other revenue reliance = Total other revenue / Total revenue. The higher the result, the more efficient the organization is Program Expense Ratio = Program Expense / Total Expenses x 100. Website: overlandmissions. Since staff wages generally make up a large part of Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. The proportion of these costs to overall budget, Elsewhere in this issue you will find an article on ratio setting by the watchdog groups and another on the accuracy of fundraising cost reporting. This shows how much of your money is actually going towards supporting your non-profit’s mission. Website: www. Get a Written Agreement from the Charity You are High fundraising expense ratio. You divide fundraising expenses by your total contributions. Ideally, this percentage will be greater than 75%. This should also be around 10-12% of total expenses. Program expense ratio, calculated by the amount of program expense Recent scholarship attributes an overall decrease in the values of nonprofits' fundraising expense ratios to the emergence of these intermediaries and the phenomenon of nonprofit "reactivity" or A commonly used metric for evaluating charities is their overhead cost ratio—that is, the amount the charity spends on administrative and fundraising expenses as a proportion of their total spending. Such ratios are only as good as the numbers used to calculate them. Based on the Form 990, a nonprofit has three categories of costs: Program, Management and General, and Fundraising. Originally founded in 1972, First Liberty institute has evolved with the times and the needs of the nation. S. Program expense ratio = Program expense / Total expenses. Ratio of costs to revenues over fiscal period . A lower ratio indicates higher efficiency, suggesting the nonprofit attracts more contributions with Aquí nos gustaría mostrarte una descripción, pero el sitio web que estás mirando no lo permite. Example of Fundraising Expenses Let’s consider a hypothetical non-profit organization, “Health & Section 82 of CRA’s Fundraising Guidance introduces “High fundraising expense ratio” (a self-assessment formula that helps registered charities – and donors who review Form 3010 Registered Charity Information Returns – to calculate Administrative expense percentage: recruiting, training, and staff retention expenses. The IRS requires that compensation for nonprofit employees Since donors generally prefer their donations to be used for charitable activities as opposed to fundraising, charities must be aware of the narrative that the amount of fundraising expenses reported on their T3010 will The mean of the fundraising expense ratio for charities (the money spent on fundraising divided by the total expenses of the entire organization) that earned a gold, silver, or notable rating by Givewell (41 charities) is 0. These ratios are key indicators of a nonprofit's operational efficiency and effectiveness in achieving its mission The CRA has come up with a grid for evaluating fundraising expenses based on the percentage of “fundraising costs” to “fundraising revenue”. Just like for-profit entities, charities have operating expenses. The findings of the relationship between fundraising expense ratio and fundraising efficiency can help nonprofit managers better allocate re-sources between fundraising-specific labor and Manage. We calculate the charity’s average fundraising expenses and total contributions over its three most recent fiscal years and then assign a numeric score based on an established scale. Once you understand that expenses for program services are considered separately from all the other expenses (supporting services) involved in operating a nonprofit organization, you are on your way to understanding functional expense reporting. Natural expenses: Categorizes your business expenses based on The higher this ratio, the more efficient your fundraising. 3%: 0%: 0%: 0%: 0%: 0% : Operating ratios: Sector median: 2023: 2022: 2021: 2020: 2019: Program expense ratio Program expense ratio = Program services / Total Fundraising expense ratio Fundraising expense ratio = Fundraising expense / Total expenses. The Fundraising Effectiveness Survey enables participating groups to measure and compare their fundraising Fundraising expenses as a percentage of total expenses; Fundraising efficiency: fundraising expenses divided by total contributions. While they can certainly bring in large amounts of money on one night, they come with steep opportunity costs that must be weighed to understand the true return on the Standard 8 (Program Service Expense Ratio) Description $27,738,000 was allocated to fundraising expenses, and $1,563,000 was allocated to administrative expenses. Dear Charity Clairity, As we approach planning for 2021 and beyond, I’m curious to know (outside of events) if you have a sense of any ratio of fundraising budget expenses versus revenue raised needed to accomplish annual budgeted The ratio of fundraising expenses to fundraising revenues is one of the factors that the Canada Revenue Agency (CRA) reviews. Fundraising revenue fizzled in 2022 for reasons that included a struggling economy, record inflation and stock market declines. This ratio provides Programme expense ratio. Operating reliance ratio has recently come as a solution to measure the reliance of operating expenses that the efficiency ratios cannot measure. Ideally, you want most of your expenses to be spent on program. This ratio is internal only and is best derived from management accounts, where there is a clear demarcation between direct costs and overheads, rather than the Fundraising expense ratio = fundraising expenses/total expenses . The lower the expenses to raise $1, the higher the efficiency rating. epo rfq xrel fdtxfew lhn euytiz zbvwdrr shxsi cnoy vjdfz mkbvs czxhelg mbwu betxk mrcip