The formula to calculate the Fundraising Efficiency Ratio (R) is:
\[ R = \frac{E}{C} \]
Where:
The fundraising efficiency ratio is a metric used by non-profit organizations to measure the efficiency of their fundraising efforts. It is calculated by dividing the total fundraising expenses by the total contributions received. A lower ratio indicates more efficient fundraising, as it means that a smaller portion of the contributions is being used to cover fundraising costs. This ratio is important for non-profits to monitor, as it helps them ensure that they are using their resources effectively and maximizing the funds available for their programs and services.
Let's assume the following values:
Using the formula to calculate the Fundraising Efficiency Ratio (R):
\[ R = \frac{5000}{20000} = 0.25 \]
The Fundraising Efficiency Ratio (R) is 0.25.
