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
fundraising. This 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
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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