Question 2.14 The board of directors of Earth Rock\'s!, a nonprofit organization

Question

Question 2.14

The board of directors of Earth Rock's!, a nonprofit organization focused on envrionmental protection, hypothesizes that individuals are more likely to donate if they see evidence that their donations are used primarily for program activities rather that administrative and fund-raising costs. To get a sense of how its own cost structure compares to other groups, the board decides to benchmark the financial performance of Earth Rocks! against several other environmental organizations. The data for Earth Rocks! and the other environmental organizations appear below

Use these data to benchmark Earth Rocks! against the other environmental organizations. How does Earth Rocks! compare to the other environmental groups?

Program Expenditures Fund-raising Costs Administrative Costs Total Costs Earth Rocks 374,900 98,000 121,400 594,300 Weed Lovers 421,000 104,300 98,350 623,650 Flora and Fauna 353,000 97,600 71,840 522,840 Leaf It Be 501,900 89,000 109,750 700,650 Nature's Gift 455,470 71,000 82,450 608,920

Explanation / Answer

The programme expendature of earth rocks is have low costs as compare to weed lovers, Leaf it be, Natures gift and slightly more than the flora and fauna.

Fund raising Cost of Earth rocks is more than the Natures gift, Leaf it be, flora and fauna and it is lower than the flora and fauna.

Administrative Cost more as compare to all other remaning variables.

Total Cost of earth rocks is lower than the Natures gift, Leaf it be, Weed lovers and it is slightly more than the flora and fauna.

From this comparision expendature of earth rocks is more affected by Administrative Cost as compare to other envirnomental groups.

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