Knowledgebase

What's the best indicator for the 'size' of an organization?


NCCS generally recommends using Total Expenses as the best measure of size for OPERATING ORGANIZATIONS. This is the best approximation to "annual budget" -- another common measure used by service organizations and others who collect such items. More importantly, it is also equates best with the level of operations of an organization.

Of course it isn't perfect. One could deduct items such as payments to affiliates, grants and other allocations, or membership benefits to arrive at a measure of OPERATING EXPENSES. However, this requires access to these data items and would make little difference for the vast majority of operating organizations.

Income -- either Total Revenue or Gross Receipts -- are other alternatives but fluctuate much more from year to year.

Total Assets gets used by the IRS Statistics of Income Division and is arguably the best measure for PRIVATE FOUNDATIONS or SUPPORTING ORGANIZATIONS.


Added 07/29/2006 by tpollak

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