In this video, we introduce the concept of efficiency ratios, the third and final part of our budget analysis series. Learn how efficiency ratios can help you see if your organization is spending efficiently and where digital efforts can have the most impact.

ADDITIONAL RESOURCES

Other efficiency ratios include:

The program efficiency ratio calculates the percentage of expenses that go directly to programs and services. This helps you understand how much of your budget supports mission-critical activities.

Another important ratio is the fundraising efficiency ratio. It measures the cost of raising funds by dividing the total fundraising revenue by fundraising expenses. A higher ratio means more efficient fundraising efforts.