A good measure of whether a not-for-profit organization is efficient in its fund-raising efforts is:
A) Fund-raising expenses as a percentage of public support.
B) The ratio of program expenses to number of clients served.
C) Total revenues divided by total expenses.
D) Percentage of program expenses to total expenses.

Question

Quizplus · Accepted Answer

Fund-raising expenses as a percentage of public support is a good measure of efficiency because it shows how much money is being spent on fund-raising in relation to the amount of money being raised. If the percentage is high, it could indicate inefficient fund-raising techniques or excessive fund-raising costs. A lower percentage indicates that more of the organization's resources are being directed towards the actual programs and services being provided.

A Good Measure of Whether a Not-For-Profit Organization Is Efficient