Nonprofit Tools
Nonprofit Overhead Ratio Calculator
Enter three numbers from your budget or Form 990 and get your program expense ratio, overhead ratio and fundraising efficiency — scored against the benchmarks donors and watchdogs actually use.
Your expenses
Spending that directly delivers your mission (Form 990 Part IX, column B).
Administration, finance, HR, governance (column C).
Staff, events, mail and software used to raise money (column D).
Donations and grants for the same period — used for fundraising efficiency.
Liquid unrestricted net assets, if you want a months-of-reserves check.
Your ratios
The benchmarks behind the scores
Program expense ratio = program spending ÷ total expenses. Charity Navigator generally gives full credit at 70% or higher; the BBB Wise Giving Alliance standard is 65%+. Fundraising efficiency = fundraising cost ÷ contributions raised; under $0.20 per dollar earns full credit with watchdogs. Overhead is simply everything that isn’t programs.
Two honest caveats. First, these ratios reward good accounting as much as good management — allocate staff time across functions properly before comparing yourself to anyone. Second, the sector has pushed back hard on “overhead myth” thinking: underinvesting in systems, fair salaries and reserves makes organizations fragile, and funders increasingly know it. Treat 70/30 as a communication benchmark, not a management strategy.
Improving the picture honestly
- Allocate before you trim. Many small nonprofits understate program share by dumping all salaries into admin. If your ED spends 40% of their week running programs, that time belongs in column B.
- Watch the trend, not one year. A building year (new CRM, new hire) legitimately dips the ratio; watchdogs average multiple years.
- Reserves matter too. 3–6 months of operating expenses in unrestricted reserves is the common target board treasurers use.
- Check individual campaigns with the fundraising ROI calculator — one expensive event can hide inside a healthy blended number, or vice versa.
This tool is for planning and communication, not audit or tax work. Your Form 990 functional expense allocation should come from your accountant.