
Fundraising Efficiency is the amount spent by a charity for each dollar they bring in as contributions. We determine this by dividing fundraising expenses by the amount of total contributions. We get this data from an organization’s 3 most recent Form 990s, and average the totals for fundraising expenses and total contributions across those 3 years, and then divide the two averages to get a raw value for Fundraising Efficiency. For this metric, a lower raw value will result in a higher score for the metric itself, for example, spending $0.05 is preferable to spending $0.25 to fundraise $1.