7 Nonprofit Financial Ratios: Definitions & Calculators

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You’ve probably used key performance indicators for various aspects of your nonprofit’s strategy in the past. KPIs are useful for quantifying the level of success of your nonprofit. For example, if you know your goal is to raise $500,000 for your nonprofit, you can easily see that you succeeded when you raise $530,000. Your nonprofit finance team also leverages KPIs to define financial success, measure the health of your nonprofit, and manage your financial standing. These KPIs are often derived from nonprofit financial ratios.

Nonprofit financial ratios are calculations used to measure your organization’s financial state and to determine the financial health of your organization. You can use these ratios to determine which aspects of your programming and operations are most successful and which need addressing for a healthier organization. Once you know the financial areas most important to your cause, you can measure your ratio, develop a goal, and strategize to improve it as a KPI.

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On October 8, 2025, Join Us for a National Town Hall on the Financial State of the Nonprofit Sector

Nonprofit GPS is a new, action-based community designed to help nonprofits navigate today’s disrupted revenue landscape. Built in consultation with organizations nationwide, it focuses on the real financial challenges nonprofits face — business model risks, capital management, budgeting, governance, and more. Together, we’ll share practical strategies and highlight bright spots of practice that strengthen missions, even in the most disruptive times.

At this event you will hear: an analysis of the current economic landscape for nonprofits and the implications for practice; what array of critical new resources will be offered by Nonprofit GPS over the next three months and beyond; and how to become involved as a practice leader in this community.

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