Evaluating Nonprofit Performance Measures This paper will evaluate non-profit organizations (NFPs), specifically charitable organizations for effectiveness. A calculation of five NFPs’ most recent financials for program effectiveness ratios will be conducted. Other financial performance measures will also be included. A table will be constructed utilizing the most recent data to display calculated performance measures. Lastly, an opinion will be given as to which of the NFPs selected is the most effective and efficient. Program Effectiveness NFP organizations have many calculations to complete for their financial reports. One ratio computed; program effectiveness is very important as it shows stakeholders how well their donations are being utilized. To calculate program effectiveness, you must divide total expenses by program effectiveness. Salvation Army The Salvation Army, as of 2018, has a program effectiveness ratio of .96. Total expenses were $3,703,604 with total revenues of $3,863,646. $3,703,604 / $3,863,646 = .958, rounded up to .96 (Salvation Army 2018, n.d.) United Way The United Way, as of 2018 has a program effectiveness ratio of .97. Total expenses were $221,743,621 with a revenue $229,665,972. $221,743,621 / $229,665,972 = .9655 rounded up to .97 (Financial Information: United Way, n.d.). Feeding America Feeding America posted a .100 program effectiveness ratio in 2018. With a perfect match of $2.9 billion in expenses and 2.9 million in revenues (Feeding America, n.d.). It is important to note though that all their financial report listed was rounded numbers, so it is possible Feeding America is just below a score of .1. Food for the Poor 2018 was a bad year, financially for the Food for the Poor NFP posting a 1.01 program effectiveness ratio. With a 2018 revenue $942,629,834 and expenses of $953,123,654 Food for the Poor is currently operating at a loss, for 2018 (Food for the Poor, n.d.) YMCA The YMCA, in 2018, posted a program effectiveness ratio of .92. With a total revenue $96,843,321 and expenses of $89,450,128. $89,450,128 / $96,843,321 = .923 rounded down to .92 (YMCA, n.d.)
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