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Program Expense Ratio Calculator for Nonprofits

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Program services as a share of total functional expenses, with the management and general and fundraising shares, from Form 990 Part IX columns (B) to (D).

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Your figures
Example figuresIllustrative only. Type over them with your own.
Program expense ratio
82.00%
Program services as a share of total functional expenses
Management and general ratio
11.00%
Fundraising ratio
7.00%
Drawn to one scale
Total functional expenses$1,000,000
Program expenses needed for the target ratio at this total$800,000
All results
MeasureResult
Program expense ratio82.00%
Management and general ratio11.00%
Fundraising ratio7.00%
Total functional expenses$1,000,000
Program dollars per dollar of support costs4.56
Program expenses needed for the target ratio at this total$800,000
Above (+) or below (-) target, percentage points2.00
How this was worked out
Work shownrecomputed as you type
Total functional expenses = program + management and general + fundraising
Program expense ratio = program expenses / total functional expenses
Each support ratio = that column / total functional expenses

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Total functional expenses = program + management and general + fundraising
  • Program expense ratio = program expenses / total functional expenses
  • Each support ratio = that column / total functional expenses

How it works

The ratio uses the three functional columns of Form 990 Part IX, which section 501(c)(3) and 501(c)(4) organizations must complete. Program services are the activities that further the exempt purpose. Fundraising expenses stay out of column (B) even when soliciting contributions is one of the purposes.

A ratio is only as good as the allocation behind it. Before you compare years or peers, check that shared costs were allocated on the same basis each year and that direct expenses of special events sit in Part VIII rather than column (D), as the instructions require.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Do grants paid count as program expenses?

Grants that further the exempt purpose are reported on Part IX lines 1 to 3 and normally fall in column (B).

Is there a legal minimum program ratio?

Form 990 sets no minimum. Funders and boards set their own benchmarks; enter yours as the target.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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