A good measure of whether a not-for-profit organization is efficient in its fund-raising efforts 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 total expenses spent on the program function as opposed to support function.

Question

Quizplus · Accepted Answer

Fund-raising expenses as a percentage of public support measures the amount of money spent on fund-raising activities in relation to the amount of money donated by the public. A lower percentage indicates more efficient fund-raising efforts, as less money is being spent to generate public support.

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