Quote:
Originally Posted by Roguish Lawyer
http://greenberetfoundation.org/financials.html
Let me note that these expense numbers can be a bit misleading. For example, let's assume (using easy rounded numbers that I am using solely to illustrate a point) you throw a big fundraising dinner and charge $1000 a plate. The dinners cost $100 each. Assume another $100 a plate for other expenses like renting the facility, printing invitations, etc. The $200 in expenses is treated as an expense even if the organization manages to get enough advance deposits to cover all expenses so they didn't have to pay a dime out of pocket. So the event has an 80% dollars raised-to-expense ratio, which kills you on your overall ratio that gets reported. If you want to keep a great ratio number like GBF has, you have to cut down on certain kinds of fundraising events, which creates a silly disincentive IMO.
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Interesting, didn't know that was how the system worked. Thanks RL.