According to Charity Watch, a group that analyzes the financial information and spending of non-profits, the most highly efficient and effective organizations should spend at least 75% of their expenses on program costs that go toward the organization’s mission, with only 25% going to administrative costs. Organizations that spend only 60% on program costs are considered satisfactory, and given a C rating. Anything lower than that, and the non-profits are given an unsatisfactory rating.
Charity Navigator uses a similar rating system for non-profits. “We believe that those spending less than a third of their budget on program expenses […]Full Story... →