You’re achieving the optimal results for this metric. Your business processes in this area are highly efficient and stand out against competitors. Keep investing in this area to maintain these results.
Administrative Expense %
Administrative expenses are incurred in a nonprofit’s overall operations and management, including employee salaries, payroll taxes, benefits, office rent, utilities and office supplies. But these administrative expenses are essential for your organization’s infrastructure and its ability to fulfill its mission. It’s important to optimize this percentage to provide the overhead necessary to meet your mission, but not take away from the organization’s cause.
Program Expense %
Nonprofit expenses are reported by purpose using a process called functional expense allocation. Program expenses are ones that support the nonprofit’s defined mission statement. For more established nonprofit organizations, these expenses are typically the majority of the overall expenses for the organization. This shows potential donors, fund sources, regulators and boards that the largest allocation of expenses is going towards supporting the mission, rather than toward administrative and similar expenses.
New donors are more costly to acquire than retaining a relationship with donors that continue to contribute to your organization. That’s why it’s critical for nonprofits to focus on strategies to keep new and existing donors coming back year after year. A high donor retention rate is a sign of a nonprofit that has loyal supporters that truly believe in its mission and believe the organization is effective in delivering on that mission. Higher donor retention can be achieved through building meaningful relationships, showing appreciation for their support and excellent donor communication.
Time to Close
Days to Complete
IT Cost as
% of Revenue
per $100M Rev
Source(s): APQC, Finlistics, Charity Navigator