Our Formula & Methodology
Earned Relationship Index:
Subscription and Membership Earned Revenue/Total Expenses (less depreciation)
Earned Relationship Revenue
Earned relational revenue includes revenue earned from subscriptions and memberships.
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.