The Nonprofit FAQ
| How can I figure out how our organization should divide its expenses? |
| On 5/7/2004 someone wrote to Nonprofit (see http://www.rain.org/mailman/listinfo/nonprofit ) with this request: I need a presentation for the new board outlining the activities of the organization and was specifically asked for a pie chart showing desireable proportions of expenditures on program services, administration, fundraising, etc. Don Griesmann, a consultant with community-based and faith-based organizations from Ventnor, NJ, responded on 5/8: Is the board interested in what is real, what the pie chart ought to look like, or some sample of the "average" nonprofit? One standard could be the IRS 990 form selecting the revenue and expense items from Parts I and II that match the organization's realities. (For information on Form 990, see http://www.nonprofits.org/npofaq/19/06.html.) As with any charting, the reader has to know the assumptions and values used to decide the factors and the background of the figures. No chart stands alone and needs at least some narrative about goals and accomplishments or lack thereof. You could assess the organizations by activities, organizationally and administratively with details for each. Charity Navigator is one of the "rating" groups that some have labeled "watchdog." The group does list what it considers to be the important factors a potential contributor should assess in a nonprofit tax exempt organizations before giving. Reasonable people could disagree. As the group states - "We simply aim to provide objective, unbiased analytical information on America's largest charities so you can determine if donating to those charities is a sound decision. " At any rate Charity Navigator's standards include Organizational Efficiency and Organizational Capacity -
To review these standards in detail see - http://www.charitynavigator.org/index.cfm/bay/content.view/catid/2/cpid/48.htm For health related charities see - http://www.charitynavigator.org/index.cfm?bay=search.cause&cgid=5&Submit.x=22&Submit.y=6 More generally, you can click on the "Cause" that best meets your organization's mission and see a number of organizations and their ratings. It seems the standards and the ratings can be put into a pie chart. You could perform a similar analysis for your organization. Take a look at the National Prostate Cancer Coalition rating for an example - http://www.charitynavigator.org/index.cfm/bay/search.summary/orgid/5926.htm Notice the Mission statement accompanying the data. Unfortunately the "Comparison By Cause Chart" linked on the right side is not available. The Better Business Bureau and Giving.org have also established standards for measuring nonprofit tax exempt organizations - See - http://www.give.org/standards/newcbbbstds.asp The evaluation process is detailed at - http://www.give.org/charities/producing.asp
These materials are thoroughly reviewed in order to determine whether or not the subject charity meets each of the the voluntary BBB charity standards. A draft report and detailed letter, outlining any findings, is shared with the charitable organization prior to publication affording the charity an opportunity to respond to any noncompliance findings. The Wise Giving Alliance will continue to produce these comprehensive and current charity evaluations to help you make the best possible giving decisions. You may find it informative to review two charities working on cancer (the National Prostate Cancer Coalition is not listed): The American Cancer Society (the Pie Chart was not working when I looked) - http://www.give.org/reports/care_dyn.asp?26 The American Cancer Aid Foundation - http://www.give.org/reports/nondissql.asp?913 Hopefully these sites will give you issues you can incorporate fairly and appropriately for your board. Posted 5/8/04 -- PB |