Thursday, April 23, 2015

Clarification on Mom's House

Hello everyone! This is just an additional post to amend the error about fundraising that was made in my group's Mom’s House presentation.
So Charity Navigator uses two calculations that focus on fundraising (described here in detail).

            The first is “Fundraising Expenses.” This is the percentage spent on fundraising compared to the total expenses of the organization. In 2012, the total expenses were $269,898 and the fundraising expenses were $31,278. This would mean that 11.6% of expenses went towards fundraisingThis is considered to be very good by Charity Navigator’s standards (if you would like to see more detailed scores for different types of nonprofits, check it out here).

            The second measure is “Fundraising Efficiency,” which is the amount of money an organization spends to generate a $1 of donation. Here’s where it gets a little confusing on the Form 990, but after talking to Prof. Campbell today during his office hours this is what I found.

           “Gross income from fundraising events” = $84,304
           “All other contributions, gifts, grants, and similar amounts” = $137,379
            Therefore, total fundraising earnings before expenses = $221,683

            “Total fundraising expenses” = $31,278

This doesn’t include government contributions. It does include fundraising “events” like candy or flower orders. So, the fundraising efficiency comes out to be $0.141, which means that Mom’s House spends 14.1¢ to raise $1.00, making a 85.9¢ profit. This is considered somewhere between average to very good by Charity Navigator’s standards, which you can see in the link above.

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