Methodology 

We understand that financial metrics can be confusing, but calculating a charity's average program expense percentage is a critical step in evaluating its overall performance. 

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Average Program Expense Percentage =  (Average Program Expenses)/(Average Total Expenses)

To calculate this metric, we start by determining the charity's average program expenses for its three most recent fiscal years. This includes expenses related to the delivery of its mission-related programs and services.

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Next, we divide this total by the charity's average total expenses for those same three years. This gives us the average program expense percentage, which tells us how much of the charity's expenses are being spent directly on its programs.

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Average Admin Expense Percentage =  (Average Admin Expenses)/(Average Total Expenses)

To calculate the average admin expense percentage, we first need to determine the charity's average administrative expenses for its three most recent fiscal years. This includes expenses related to the management and support of the charity's operations.

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Next, we divide this total by the charity's average total expenses for those same three years. This gives us the average admin expense percentage, which tells us how much of the charity's expenses are being spent on administrative costs.

 

Average Fundraising Expense Percentage =  (Average Fundraising Expenses)/(Average Total Expenses)

To determine the average fundraising expense percentage, we need to calculate the average fundraising expenses for the charity's three most recent fiscal years. This includes expenses related to fundraising activities such as direct mail campaigns, fundraising events, and other outreach efforts.

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Next, we divide this total by the charity's average total expenses for those same three years. This gives us the average fundraising expense percentage, which tells us how much of the charity's expenses are being spent on fundraising efforts.

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And that's it! By calculating these three metrics, you can gain a better understanding of how a charity is allocating its resources and what percentage of its expenses are being spent on programs, administration, and fundraising.