{
  "slug": "nonprofit-overhead-ratio",
  "title": "Nonprofit Overhead Ratio Calculator",
  "heading": "Nonprofit Overhead & Program Ratio Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/nonprofit-overhead-ratio",
  "summary": "Program, admin, and fundraising ratios the way watchdogs compute them.",
  "description": "Charity raters, grantmakers, and the Form 990 all look at how expenses split across program services, management, and fundraising. Calculate the ratios, see where you fall against common benchmarks, and find how much shifting a cost category changes the picture.",
  "formula": "Program ratio = program expense ÷ total expense; fundraising efficiency = contributions ÷ fundraising expense.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=nonprofit-overhead-ratio",
  "inputs": [
    {
      "id": "program",
      "label": "Program service expense",
      "kind": "number",
      "hint": null,
      "default": 820000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "admin",
      "label": "Management & general",
      "kind": "number",
      "hint": null,
      "default": 130000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "fundraising",
      "label": "Fundraising expense",
      "kind": "number",
      "hint": null,
      "default": 95000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "contributions",
      "label": "Contributions raised",
      "kind": "number",
      "hint": null,
      "default": 780000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "revenue",
      "label": "Total revenue",
      "kind": "number",
      "hint": null,
      "default": 1080000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "reserves",
      "label": "Unrestricted net assets",
      "kind": "number",
      "hint": null,
      "default": 340000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "programRatio",
      "label": "Program expense ratio",
      "format": "percent",
      "hint": "Most raters want 65%+; 75%+ is strong",
      "primary": true
    },
    {
      "id": "adminRatio",
      "label": "Management & general ratio",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "fundraisingRatio",
      "label": "Fundraising ratio",
      "format": "percent",
      "hint": null,
      "primary": false
    },
    {
      "id": "efficiency",
      "label": "Dollars raised per fundraising dollar",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "surplus",
      "label": "Operating surplus / (deficit)",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "monthsReserve",
      "label": "Months of operating reserve",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Program service expense: 820000 $",
      "Management & general: 130000 $",
      "Fundraising expense: 95000 $",
      "Contributions raised: 780000 $",
      "Total revenue: 1080000 $",
      "Unrestricted net assets: 340000 $"
    ],
    "outputs": [
      "Program expense ratio: 78.5%",
      "Management & general ratio: 12.4%",
      "Fundraising ratio: 9.1%",
      "Dollars raised per fundraising dollar: $8.21",
      "Operating surplus / (deficit): $35,000",
      "Months of operating reserve: 3.9"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter program service expense ($).",
      "Enter management & general ($).",
      "Enter fundraising expense ($).",
      "Enter contributions raised ($).",
      "Enter total revenue ($).",
      "Enter unrestricted net assets ($).",
      "Read your program expense ratio on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "program": 492000,
        "admin": 78000,
        "fundraising": 57000,
        "contributions": 468000,
        "revenue": 648000,
        "reserves": 204000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "program": 820000,
        "admin": 130000,
        "fundraising": 95000,
        "contributions": 780000,
        "revenue": 1080000,
        "reserves": 340000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "program": 1312000,
        "admin": 208000,
        "fundraising": 152000,
        "contributions": 1248000,
        "revenue": 1728000,
        "reserves": 544000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Is a low overhead ratio always good?",
      "a": "No — the 'overhead myth' letter from the major charity raters said so explicitly. Starving infrastructure produces weak data systems, high staff turnover, and worse outcomes. Judge results alongside ratios."
    },
    {
      "q": "How much reserve should we hold?",
      "a": "Three to six months of operating expense is the common guidance. Organizations dependent on reimbursement contracts should hold toward the upper end because payments arrive late."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/donor-retention",
    "https://www.revenuelab.fyi/toolbox/grant-budget"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Nonprofit Overhead Ratio Calculator (https://www.revenuelab.fyi/toolbox/nonprofit-overhead-ratio)"
}