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The Magical Nonprofit Financial Ratio Matrix

Blue Fox

Our team at Blue Fox created this Magical Ratio Matrix to help your organization measure its financial health against industry standards. What are the red flags for each ratio? Are your ratios within the acceptable range? Dust off those financial statements and put them to work! So, how do you measure up? Did you get a red flag?

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How do grantmaker CEO salaries compare with other staff? 

Candid

One of the more helpful ways to explore top executive pay is to examine the ratio of their compensation compared to that of the “median worker” (i.e., For example, in The Battle for the Soul of Capitalism , John Bogle estimated a nationwide ratio to be approximately 280:1 in 2004 (up from 42:1 in 1980). The median ratio was 2.7:1

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Matching Gift Guidelines | Ratios, Minimums, Maximums & More

Double the Donation

Thousands of companies match donations made by employees to a range of nonprofit causes through corporate matching gift programs. However, billions of dollars in available corporate matching revenue go unclaimed each year?—largely

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Myth Busters: Why Donors Shouldn’t Rely on the Overhead Ratio

NonProfit Hub

Rottenness is not a very useful criteria for picking where to eat, but GuideStar President and CEO Jacob Harold said this scenario happens every time a person chooses to rely upon a nonprofit’s overhead ratio to make a donation. The post Myth Busters: Why Donors Shouldn’t Rely on the Overhead Ratio appeared first on Nonprofit Hub.

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How to Demonstrate ROI to Your Nonprofit Board Members

Nonprofit Tech for Good

Understanding the importance of accurate reporting of staff time and all related fundraising expenditures will reap benefits in terms of precise calculations of financial ratios related to fundraising. Sharing this information with your board and other supporters can instill confidence in your nonprofit’s ROI, regardless of that benchmark. ?

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What Are Key Event Metrics and Why Do They Matter?

Greater Giving

Cost-to-Revenue Ratio. A cost-to-revenue ratio is a slightly different measurement than ROI that can tell you how much profit your event made versus the costs sunk into it, helping you determine whether the event overall showed a profit or a loss. The lower the ratio, the more effective your spending is. . spent, you made $100.

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The overhead myth: crash course to fundraising transparency

Candid

To define the overhead myth, we first need to define the term “overhead ratio.” . Overhead ratio essentially refers to the amount of a nonprofit’s budget that’s dedicated to overhead costs (i.e. With that in mind, let’s dive into the article, starting with a quick definition of the overhead myth itself. What is the overhead myth?

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Why You Should Do A Cost-Benefit Analysis Before Throwing Your Next Nonprofit Fundraising Event

Bloomerang

When it comes to individual giving, an acceptable cost-benefit ratio can depend on a range of factors: Your organization’s history, age, and size. raised ratio, or would he/she prefer it generate $4 million at the cost of $1 million, for a $0.25 raised ratio? The ratio of 4 to 1 does not look as good as 5 to 1.

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How to Develop Your Nonprofit Operating Reserves

sgEngage

The Nonprofit Operating Reserves Initiative (NORI) Workgroup suggests that the minimum operating reserve ratio at the lowest point during the year should be 25 percent, or about three months of the annual operating expense budget. How To Calculate Your Operating Reserve Ratio. However, this is not a universal benchmark.

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8 Random But Useful Social Media Tips for Nonprofits

Nonprofit Tech for Good

The optimal aspect ratio for Twitter photos is 2:1. For your followers to see a full preview of the photos you upload to Twitter, photos should be sized with a 2:1 aspect ratio. When you use a Twitter username as the first word in your tweet, you must add a period before the username for all your followers to see your tweet.

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How Charity Navigator is accounting for the financial effects of COVID-19 in the Star ratings

Charity Navigator

We use real data from the IRS Form 990 to inform where we set benchmarks for charity performance when it comes to financial ratios. We constantly monitor charity performance across the industry and make adjustments to our ratings tables when needed. Read more ».

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How to effectively communicate impact to nonprofit stakeholders

ASU Lodestar Center

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.

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12 Nonprofit Call-to-Action Twitter Images to Study and Learn From

Nonprofit Tech for Good

It is true that tweets with images receive more engagement , but how much more engagement depends on the quality of the images and if they are properly sized for Twitter ( 1024 x 512 pixels or a 2:1 aspect ratio ).

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Matching Donations: A Nonprofit’s Guide to Doubling Impact

DipJar

The top matching gift companies offer generous match ratios and maximum match amounts per employee. For example: Disney will match donations between $25 and $25,000 at a ratio of 1:1. Apple will match up to $10,000 at a ratio of 1:1 for active employees. Google will match up to $10,000 at a ratio of 1:1 for active employees.

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3 Ways to Incorporate Matching Gifts Into Your Fundraising Strategy

Classy

While most matching gift companies match at a 1:1 ratio, some even match at a 2:1, 3:1, or even 4:1 ratio. Most matching gift programs offer funds at a 1:1 ratio, but some even go as high as 4:1. Capital Group. Air Products and Chemicals. American Express.

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The Lurker to Contributor Ratio: Tagging Communities Compared To Other Online Communities

Beth's Blog: How Nonprofits Can Use Social Media

Indeed, I've been looking for some research that confirms that the lurker to participant ratio in online communities (see Nielsen ) holds true for some web2.0 This was an attempt to find out the ratio of contribution to ???lurking??? The respondents are self-selected, so expect the numbers to skew high.

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How to Follow the Web Content Accessibility Guidelines: Resources for Nonprofit Design

Media Cause

This tool by WebAIM checks the contrast between your foreground and background by providing ratios based on hex codes. . Remember, the contrast ratio between text and a text’s background should be at least 4.5:1. This resource gives detailed WCAG ratings on how content appears as standard text, large text, and graphical objects.

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Six key areas your association should identify to improve member engagement scoring

Nimble AMS

For example, if your association is highly involved in volunteering efforts, you’ll want to adjust your scoring ratio accordingly to include options for members who are SMEs, ambassadors, or involved in your advocacy program. Miscellaneous : Each organization has unique values driving its member engagement strategy.

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10 Common Mistakes Made by Nonprofits on Social Media

Nonprofit Tech for Good

Not following on a 1:1 ratio on Twitter. If your nonprofit’s objective is to gain a lot of followers on Twitter, then you should follow on a 1:1 ratio. There are so many benefits to following on a 1:1 ratio, and sadly less than 1 percent of nonprofits on Twitter do. I am a big believer that less is more on Facebook.

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4 Key Benefits of Employer Matching Gifts for Nonprofits

sgEngage

According to these statistics from Double the Donation , 91% of companies match donations at a dollar for dollar ratio, while 5% match at even higher levels such as 2 or 3:1. Then, they request a match from their employer who happens to match at a 3:1 ratio. So what does that mean for your nonprofit fundraising?

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How To Achieve Work-Life Balance, Prevent Burnout, Retain Nonprofit Employees, And Increase Productivity

Bloomerang

This is the lowest the ratio has ever been.”. Chamber of Commerce, “94% of state and local chambers say businesses in their areas are finding it difficult or very difficult to find workers.” Another shocking static: “There are fewer than one available worker for every job open.

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3 Rules to Create Awesome Content that Gets More Engagement

Association TV

42 Newton ratio. Is what I’m about to say valuable to my audience and, if it is, am I saying it in a way they’ll understand and want to engage with? Think about it from a feature vs. benefit perspective. A feature is your car’s new engine sprockets that are made with lithium ion and have a.42 Can you tell I know cars?).

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50/50 Raffle Fundraiser

CauseVox

Alternatively, while a 50/50 split is the most common configuration, you can also try out different ratios like a 60/40 or 80/20 split. By using a multi-winner model, you can incentivize donors to give more since they have more opportunities to win. It really depends on what you think will work best for your purposes.

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Don’t Panic: Common WordPress Errors and How to Fix Them (Part One)

Byte Technology

If you discover that your sidebars are showing up below the content instead of where they should be—next to it—it’s likely you’ve forgotten to close an html tag or accidentally added an extra “closing div.”

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How to Create a Fairly Meaningful Budget for 2021

Blue Fox

Do some math Use our Magical Nonprofit Financial Ratio Matrix to assess your organization’s financial health. Get 2020 financials up-to-date Scrub your data in Quickbooks or in your accounting files and make sure you have accurate data on the books. This tool will provide you vital information to assist in your budgeting process.

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Guest Post: Facebook Video Tips from Non-Profit Marketers

Beth's Blog: How Nonprofits Can Use Social Media

16:9 ratios require that the viewer tilts their phone and watches it in a non-vertical orientation. Both versions were identical except for one key difference—aspect ratio. One was in a 16:9 landscape ratio, and the other was in a 1:1 square ratio. Video is a medium uniquely suited to do just that.”.

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Why should charitable donors invest in nonprofit infrastructure?

ASU Lodestar Center

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.

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10 Donation Page Best Practices for Nonprofits

Nonprofit Tech for Good

For example, Children International : Also, provided your program vs. operating expense ratio is good ( 75%/25% ), create a simple pie chart graphic that illuminates your program and operating costs. That said, there is a growing movement against low overhead as the primary indicator of a nonprofit’s effectiveness.

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How Does a 50/50 Raffle Work? Guides for Nonprofits

CauseVox

Alternatively, while a 50/50 split is the most common configuration, you can also try out different ratios like a 60/40 or 80/20 split. By using a multi-winner model, you can incentivize donors to give more since they have more opportunities to win. It really depends on what you think will work best for your purposes.

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How do you make your holiday charitable giving decisions?

Beth's Blog: How Nonprofits Can Use Social Media

Last year, Nathanial Whittemore facilitated an online discussion by asking bloggers to answer the question: " What is the one thing you need to know before you donate to charity? " This year the answer to the question isn't overhead ratios and executive salaries. . Are overhead ratios important to you? differently.

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Digital Fundraising for Nonprofits: 6 Key Strategies

Nonprofits Source

Once nonprofit users integrate the matching gift software into their online donation form, donors will input their employer, and the software will seamlessly submit the request and amplify the gift by a 1:1 or even 2:1 ratio. Choose a platform with auto-submission capabilities to further simplify and speed up the process.

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Making the Web Accessible: Color Choices

Media Cause

Paying attention to contrast ratios is one of the easiest ways we can adapt our websites to be more accessible for color blind people.

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7th Annual Nonprofit Technology Staffing & Investments Report: A Closer Look (Staffing Levels)

NTEN

Another way we measure technology staffing levels is determing the Tech Staff - to - Organizational Staff Ratio. If you have 12 total staff members, and you know that the average ratio of tech-to-org staff for your budget size is 1:24, then you know that having at least 0.5 This gives us (and you) a more comparable metric.

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Courting Corporate: Utilizing the Opportunities of Company Philanthropy

Byte Technology

Others mirror matching gift programs in that the businesses will donate funds of equal or greater value (depending on the ratio) to the amount raised by an employee for a specific fundraising activity, like a 5K.” “Some [companies] offer a set grant amount for every walk, run, skip, hop and jump an employee participates in,” says Weinger.

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How Indigenous Peoples’ Day is Supplanting Columbus Day

Whole Whale

However, starting in as early as 2014, “Indigenous Peoples’ Day” begins to show up in comparison at a 89:1 volume ratio. This reveals the dominance of Columbus Day as the standard by an order of magnitude in search volume. .

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How much do you spend on overhead?

ASU Lodestar Center

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. Encourage honest discussion with grantees and come to an agreed upon definition of overhead. Nonprofits.

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Social Superpower: Using Facebook to Increase Your NPO’s Website Traffic

Byte Technology

While this may seem trivial, any non-profit sporting an FB presence should be closely monitoring the number of links from friends versus links from “Pages”—it’s more than likely that the ratio is ten-to-one or greater. What does this mean in practical terms? Simply put, Facebook puts friends “first” in a News Feed.

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The Better Way For Discussing Performance With An Employee

Eric Jacobsen Blog

Emphasizing what is wrong TO focusing on what is right (keep a five-to-one positive-to-negative ratio). Praise efforts as well as results. Looking back TO looking forward to see opportunity and to create learning. Focusing on actions TO focusing on the sustainability of actions.

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Matching Gift Campaigns For Giving Tuesday

Qgiv

A matching gift campaign is a fundraising strategy in which donations are matched by a matching gift donor, often at a 1:1 ratio. What is a matching campaign, and why does it matter? That means that for every dollar a donor gives, a second dollar is provided up to a maximum matching gift amount determined by the matching gift donor.

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How Removing Overhead Can Improve Donation Rates

NonProfit Hub

And if your ratio is higher than the magic number, it may drive potential donors to other organizations. Cost of living and supplies affect this ratio as well. As Guidestar points out, program ratios aren’t the last word for how successful a nonprofit is. A high number can doom a nonprofit’s hopes to raise money.