Mission, Management, Performance = Balanced Leadership


Benchmark Financial Performance

A benchmark is a standard or point of reference against which things may be compared or assessed.

Charity Navigator utilizes data from charities’ 990 form to measure seven financial performance metrics. The first four, program expense, administrative expense, fundraising expense and fundraising efficiency, measures financial efficiency. While the final three, program expense growth, working capital ratio and liabilities to assets percent measures financial capacity. 

In Florida, there are nine four-star Humane Societies. The top Humane Society financial rating performers are:

  • Tri County Humane Society, Boca Raton, FL, with a perfect financial rating score of 100.
  • Humane Society of Sarasota County, Sarasota, FL, also with a perfect financial rating score of 100.

Earning a perfect Charity Navigator financial score requires attaining the following benchmarks.

Program Expense %:             > 85% 

Admin Expense %:                < 15%

Fundraising Expense %:       < 10%

Fundraising Efficiency:         < $0.10

Program Growth:                  > 10%

Working Capital:                    > 1.0

Liabilities to Assets %:          < 5%

Rating Financial Health

Charity Navigator's current methodology, CN 2.1, went into effect on June 1st, 2016.

Explore CN 2.1 Methodology

Additional Financial Ratios

1) Defensive Interval (DI)

Cash + Marketable Securities + Receivables

Average Monthly Expenses

Reflects how many months the organization could operate if no additional funds were received. 

2) Liquid Funds Indicator

LFI= Total Net Assets – Restricted Net Assets – Fixed Assets

Average Monthly Expenses

The liquid funds indicator is similar to the defensive interval in its use but is more conservative in removing assets with restrictions on them from the calculation. It also determines the number of months of expenses that can be covered by existing assets.

3) Liquid Funds Amount

LFA= Dollar Value of Unrestricted Net Assets - Net Fixed Assets +

Mortgages and Other Notes Payable

The liquid funds amount is a common size value that quantifies the liquid unrestricted dollar amount that an organization has available to meet current obligations.

4) Savings Indicator

(SI)= Revenue – Expense

Total Expense

The savings indicator measures the increase or decrease in the ability of an organization to add to its net assets. Values greater than one indicate an increase in savings. The savings indicator is a simple way to determine if an organization is adding to or using up its net asset base 

5) Contributions and Grants

CG= Revenue from Contributions and Grants

Total Revenue

The contributions and grants ratio measures the composition of organization funds coming from these sources. Organizations can use this indicator to determine long and short-term trends in line with strategic funding goals that can change the organizational revenue composition in this area. 

6) Revenue Ratios

Revenue Source

Total Revenue

Revenue sources are analyzed in order to establish what proportion each of these revenue streams contributes to the organization’s total revenues.  

Human Performance Technology Model

How Does Human Performance Technology Approach Problems?

The International Society for Performance Improvement describes Human Performance Technology as “the systematic and systemic identification  and removal of barriers to individual and organizational performance.”  The interventions for each project, product or service are drawn from many disciplines, like behavioral psychology, instructional systems design, organizational development and human resources management.

The first four primary principles of HPT are:

  • HPT focuses on outcomes. To remove the barriers to customer  satisfaction, HPT focuses on the results of the human performance and  systems already in place. There may be a need for additional training or  a need to review the current motivational practices. And if people have  the necessary knowledge and skills to perform tasks well and in a  timely manner, HPT checks to be sure that all involved have the same  vision and goals
  • HPT takes a systems view. Instead of a process model, which analyzes  isolated steps in production, HPT considers the system as a whole. When  determining where barriers exist in the production process, HPT focuses  on the result and how the entire system works together to satisfy the  customer or end user.
  • HPT adds value. Determining where barriers and performance gaps  exist is a critical step in the HPT process. However, in the final  analysis, success is measured in improvements in desired business  outcomes (i.e. sales, profitability and market share). As strategies are  implemented and performance improves, the customer or client benefits  from an improved product or service and business relationships develop  and grow.
  • HPT establishes partnerships. Because HPT takes a systems view, it  is important that all parties share responsibilities and decisions and  that they trust and respect each other. Collaboration is key.

Source: University of West Florida:

Human Performance Technology Model
Human Performance Technology Model