Net income ratio
This ratio shows the size of an organisation’s operating surplus or deficit, as a percentage of their total income.
Net income ratio = (Total Income – Total expenses)/Total Income
A higher percentage indicates a better organisational operating surplus, as a percentage of total income.
Integrity, honesty and unbiased assessment are at the core of Giving Guide’s mission. The charity sector is important to the economy and culture of Australia, We believe independently assessing the accountability, transparency and effectiveness of the sector beyond what is currently available is important to it's future.
Giving Guide anticipates enhancing the level of governance and transparency in the Australian charity sector. An independent charity advisor would benefit the sector by helping charities consider exceeding the existing governance standards of the Australian Charities and Not-for-profits Commission (ACNC) to the benefit of donors.