ASU Lodestar Center

APRIL 1, 2022

The problem with ratios. They often use financial ratios to measure a nonprofit's impact, but these do not most accurately showcase a program's efficiency. If nonprofit leaders neglect the art and science behind storytelling, they leave prospects to decide donation-worthiness or attempt to discern impact from ratios and ratings.

Impact 52

Impact Communication Effective Ratio 52

ASU Lodestar Center

NOVEMBER 3, 2021

By adhering to these expectations, nonprofits are supporting false expectations in other donors, potential board members, staff and the public. Instead of focusing on income and expense ratios, donors should ask about the scale of the organization’s goal, how they are measuring their goal progress, and what it would take to reach that goal.

Indiana 98

Indiana Ratio Arizona Summary 98

ASU Lodestar Center

JUNE 16, 2021

The unrealistic expectations that have been created through the nonprofit starvation cycle by donors only continues to rise as nonprofit efficiency is judged on financial ratios. Donors need to be educated on the harsh reality of solely judging an organization’s efficiency through financial ratios.

Donor 52

Donor Ratio Colorado Nonprofit 52

ASU Lodestar Center

JUNE 4, 2019

Their overhead ratio looked great, which was one of the reasons that the Wilners had selected RAICES to receive the donations; however, that lack of infrastructure also led to difficulties communicating with their new donors and with tracking and acknowledging donations—more than 250,000 of which poured in the first week to the Facebook campaign.

Organization 40

Organization Charlotte Ratio Arizona 40

ASU Lodestar Center

MAY 4, 2011

News and World Report , and Money routinely publish stories that emphasize program spending and fundraising cost ratios. Federated campaigns often "help" their donors make giving decisions by prominently publishing such ratios next to the organizations names. A lot of people really didnt like the approach.

Teach 90

Teach Ratio Student Classes 90

Bloomerang

AUGUST 13, 2021

So we’ve got a small efficient staff located everywhere from Montana down to Arizona and over to Washington DC. So this is really causing a look at the ratio to maybe shift from 85% or maybe even more of your dollars coming from 15% of your donors. . But now we’re seeing more evidence that this is really shifting.

Method 112

Method Video Giving Nonprofit 112

Bloomerang

AUGUST 13, 2021

So we’ve got a small efficient staff located everywhere from Montana down to Arizona and over to Washington DC. So this is really causing a look at the ratio to maybe shift from 85% or maybe even more of your dollars coming from 15% of your donors. But now we’re seeing more evidence that this is really shifting.

Method 52

Method Giving Nonprofit Gift 52