A not-for-profit entity had revenues,gains,and other support of $18 million;program expenses of $12 million;and administrative and fund raising expenses of $4 million.What was the entity's program services ratio?
A)11%
B)67%
C)75%
D)300%

Question

Quizplus · Accepted Answer

The program services ratio is calculated by dividing program expenses by total expenses. Total expenses are $12 million (program) + $4 million (administrative and fundraising) = $16 million. The program services ratio is $12 million / $16 million = 0.75 or 75%.

A Not-For-Profit Entity Had Revenues,gains,and Other Support of $18 Million;program