Programme Expenses Ratio : 64%
Total Expenses = Performance Expenses +Fund raising expenses +Industrial Class Expenses +General and Administrative Expenses
Total Expenses = $5,000+ 2,800+3,000+1,700 = $12,500
Programme Expenses = Performance Expenses + Industrial Classes Expenses
= $5,000 +$3,000 = $8,000
Programme Expenses Ratio = Programme Expenses / Total Expenses
= $ 8,000 / $12,500 = 0.64 ,
=64%
Programme Expenses Ratio :The program expense ratio is the relative measure of program expense to total expense. In other words, this ratio takes a nonprofit’s program expenses and divides them by its total expenses.
As mentioned above, program expenses are the highest portion of the total costs incurred by nonprofits. Similarly, investors associate these expenses with the highest efficiency in achieving missions.
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