A good measure of whether a not-for-profit organization is operating its programs efficiently 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

The ratio of program expenses to number of clients served is a good measure of whether a not-for-profit organization is operating efficiently because it shows how much money is being spent per client served. This ratio can help identify whether the organization is delivering services as efficiently as possible or if there are opportunities to improve operations. Fund-raising expenses as a percentage of public support and percentage of program expenses to total expenses are also important measures, but they do not directly provide insight into program efficiency. Total revenues divided by total expenses is a measure of financial viability but does not necessarily reflect program efficiency.

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