Performance Measure Ratio And Fund Raising Ratio Essay
For the most recent year of the St. Jude Children s Research Hospital, we calculated 6 of the following
performance measure ratios. Since we must choose the Program Effectiveness Ratio and Fund Raising
Ratio plus any four of the performance measure ratios, we chose the Going Concern Ratio, Liquidity
Ratio, Efficiency Ratio, and Fund Raising Efficiency Ratio.
1. Program Effectiveness Ratio
Total Program Expenses Γ· Total Expenses
722,304,197 Γ·997,401,179= 72.42%
2. Fund Raising Ratio
(Total Contributions Fund raising costs) Γ· Total contributions
(797,005,822 166,560,526) Γ· 797,005,822= 79.10%
3. Going Concern Ratio
a. RevenuesΓ· Expenses
602,964,477Γ· 997,401,179= 60.45%
b. Unrestricted net assets Γ· Operation Expenses 2,578,631,115 Γ· 275,096,982= 9.37 months
4. Liquidity Ratio
Current Asset (cash, A/R, Inventory) Γ· Current Liabilities
169378355 Γ· 141299219=1.20
5. Efficiency
Program Expenses Γ· Number of clients served
722,304,197 Γ· 7,800 patients= $92603.10
6. Fund Raising Efficiency
Fund Raising Expenses Γ· Public Support
166,560,526 Γ·983,613,887= 16.93%
The following are our discussions about each of the 6 ratios that we already calculated.
1. Program Effectiveness Ratio: for this particular ratio, we think that the ratio of 72.42% for the
Program Effectiveness Ratio is not really ineffectiveness for the St. Jude Children s Research
Hospital. However, when we first choose this nonprofit organization, we thought that the organization
s Program
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