Fundraising Efficiency Ratio Calculator

Calculate Fundraising Efficiency Ratio



Formula

The formula to calculate the Fundraising Efficiency Ratio (R) is:

\[ R = \frac{E}{C} \]

Where:

Fundraising Efficiency Ratio Definition

The fundraising efficiency ratio is a metric used by non-profit organizations to measure the efficiency of their fundraising efforts. It is calculated by dividing the total fundraising expenses by the total contributions received. A lower ratio indicates more efficient fundraising, as it means that a smaller portion of the contributions is being used to cover fundraising costs. This ratio is important for non-profits to monitor, as it helps them ensure that they are using their resources effectively and maximizing the funds available for their programs and services.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Fundraising Efficiency Ratio (R):

\[ R = \frac{5000}{20000} = 0.25 \]

The Fundraising Efficiency Ratio (R) is 0.25.