Methodology

Earned Operating Revenue

Our Formula & Methodology

Earned Operating Revenue Index:

Total Earned Operating Revenue/Total Expenses (less depreciation)

Total Earned Operating Revenue

Following Nonprofit Finance Fund’s encouragement to examine performance on a strictly operating basis, we exclude realized and unrealized capital gains and losses from total unrestricted earned revenue.

Total Expenses

Following Nonprofit Finance Fund’s encouragement to examine performance on a strictly operating basis, we look at expenses before depreciation since depreciation is a non-cash expense that accounts for the reduced value of assets due to their use over the year.

A Breakdown of Our Methology