Nonprofit Compensation Ratios

Calculate program-service and executive-compensation ratios from supplied nonprofit expense figures.

Description

Nonprofit compensation ratios express program and executive amounts as shares of a total budget.

Nonprofit compensation ratios express program and executive amounts as shares of a total budget. The remainder assumes those components do not overlap.1

Calculate program-service and executive-compensation ratios from supplied nonprofit expense figures.

When to use Nonprofit Compensation Ratios

Use this tool to calculate program-service and executive-compensation ratios from supplied nonprofit expense figures.

Prepare the text, recorded observations, aligned figures or editorial criteria requested. Confirm what each label, count, timestamp or supplied flag represents before interpreting the result.

How to use Nonprofit Compensation Ratios and understand its results

  1. Prepare the text, recorded observations, aligned figures or editorial criteria requested. Confirm what each label, count, timestamp or supplied flag represents before interpreting the result.
  2. Enter totalExpenses, programServiceExpenses, executiveCompensation using the field table and calculation rules, then run the tool.
  3. Read programExpensePercent, executiveCompensationPercent, otherExpenseAmount. The explanation below defines the units, signs, ordering and any flags or placeholder values.
  4. If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
Input fieldMeaningValue type; see rules belowRequirement
totalExpensesTotal expenses (currency)number; minimum: 0Required
programServiceExpensesProgram-service expenses (currency)number; minimum: 0Required
executiveCompensationExecutive compensation (currency)number; minimum: 0Required

Enter positive total and nonnegative components whose sum does not exceed it. Return program/executive percentages and the other-expense amount.

program%=100program/total; executive%=100executive/total; otherAmount=total−program−executive

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output fieldMeaningValue type
programExpensePercentProgram expense ratio (%)number; minimum: 0
executiveCompensationPercentExecutive compensation ratio (%)number; minimum: 0
otherExpenseAmountOther expenses (currency)number
json
{
  "input": {
    "totalExpenses": 1000000,
    "programServiceExpenses": 750000,
    "executiveCompensation": 100000
  },
  "output": {
    "programExpensePercent": 75,
    "executiveCompensationPercent": 10,
    "otherExpenseAmount": 150000
  }
}

Limitations and assumptions

Real accounting categories may overlap; establish a disjoint basis first. No financial filings, compensation reasonableness or wrongdoing is assessed.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Donor Concentration Analysis: Aggregate contributions by donor and calculate largest-share and Herfindahl concentration measures. For a complementary task, use Table Total Check: Sum supplied table rows and compare the result with a published total.

References

  1. Nonprofit Compensation Ratios — tool.io

Similar or alternative tools

Don't forget to set a bookmark for tool.io!
Privacy | Imprint | Cookies