Operating Reserve Ratio
46.77%
Indicates how many months, on average, an organization in a given budget tier can operate using only their unrestricted net assets.
A higher sector-wide reserve suggests stronger collective resilience against funding disruptions or emergencies, while lower reserves may indicate vulnerability to financial instability.
Grant Dependency
43.3%
Shows the average percentage of total income that comes from grants across organizations in each tier.
High grant dependency at the sector level may signal a risk of overreliance on volatile funding streams, particularly in smaller organizations, and may affect the sector’s ability to adapt to shifts in funding trends.
Revenue Diversity
53.59%
Measures how many distinct revenue sources (e.g., grants, donations, ticket sales, memberships) organizations across the sector rely on.
A more diverse income profile within a tier reflects stronger financial resilience and greater flexibility, while lower diversity suggests greater risk if any single revenue source declines.
Program Efficiency
9.17%
Indicates the average percentage of expenses that organizations dedicate to mission-driven programs within each tier.
Higher sector-wide program efficiency suggests a strong alignment between spending and mission delivery, especially important for demonstrating impact and maintaining public trust.
Expense Allocation
63.72%
Provides an overview of how organizations distribute expenses among programming, administration, and fundraising.
Sector-wide trends in each budget tier highlight the balance between mission delivery and operational support. Healthy organizations typically allocate 65–85% of their budget to program services.
Fundraising Efficiency
42.63%
Shows how much, on average, it costs organizations to raise a single dollar.
At the sector level, this indicator reflects the overall effectiveness of fundraising strategies by tier. Lower fundraising costs indicate efficient development efforts and better returns on fundraising investments.
Current Ratio
36.54%
Represents the average ability of organizations in each tier to meet short-term financial obligations, by comparing current assets to current liabilities.
A higher ratio indicates sector-wide liquidity and financial health, while a lower ratio may suggest increased financial pressure or risk of cash shortfalls.
Debt-to-Equity Ratio
76.95%
Compares total liabilities to net assets across organizations in each budget tier.
A lower average ratio reflects reduced reliance on debt and stronger financial positioning. Higher ratios may indicate financial stress or increased exposure to borrowing risks in certain segments of the sector.
Cash Flow Stability
23.09%
Assesses whether organizations within each budget tier consistently bring in enough revenue to cover expenses.
This indicator reflects the overall financial steadiness of the sector and its ability to sustain operations without disruptions or reliance on reserves.