What about overhead ratio?
Last year, GuideStar, Charity Navigator, and BBB Wise Giving Alliance published an open letter to the donors of America denouncing the use of the “overhead ratio” as a primary indicator of nonprofit performance. The letter, signed by all three organizations’ CEOs, marked the beginning of a campaign to correct the common misconception about the importance of a low overhead ratio. See the website Overhead Myth for more on this issue.
Our Organizational Expenses:
- Staff salaries: 60%
- Equipment and insurance: 15%
- Costs to run events (venue, food, entertainment, transportation, permits): 14%
- Camp sites, food, transportation: 6%*
- Staff training: 3%
- Tools to manage our programs and operations: 2%
*Most of our program expenses are covered by in-kind donations. This enables us to serve more youth.
Where does my money go?
Event revenue covers the expenses to run them, grants cover the money to write them, etc. Your money will go right into staff salaries, equipment, insurance and expenses such as camp sites, food and transportation.