Cost to Raise a Dollar- What to include

Nicole Kennedy
Nicole Kennedy
Eighth Anniversary Name Dropper Facilitator 1 Blackbaud Certified
in Blackbaud Raiser's Edge NXT®: General Discussions

We've gone back and forth internally about how to calculate cost to raise a dollar (CTRD). We want to calculate it so that we know when we compare our CTRD to other non-profits (who are partially or fully funded by a parent company) we are comparing apples to apples.

Our health system pays for over 80% of our operating. We count this as an in-kind donation to our foundation. Our health system also provides additional support through the system's legal, HR, IT and marketing departments.

When calculating CTRD:

Question 1: Should the GIK from the health system be included in our expense number?

Question 2: Should the GIK from the health system be included in our gross revenue number?

Question 3: Should the overhead allocation for things like legal, hr and marketing support be included in our expense number?

I appreciate any insight into how others who may be similarly structured calculate this. Thank you in advance for your feedback.

Nicole Kennedy

Comments

  • Heather MacKenzie
    Heather MacKenzie
    Tenth Anniversary Kudos 5 August 2025 Monthly Challenge Badge bbcon 2025 Attendee Badge

    @Nicole Kennedy I worked for a Healthcare system in a past life. We included the GIK from the supporting system since it was still part of the cost to raise the dollar.

    2 - We didn't include it as revenue. 3 - All pieces of the GIK were included in our expenses figure.

  • Nicole Kennedy
    Nicole Kennedy
    Eighth Anniversary Name Dropper Facilitator 1 Blackbaud Certified

    @Heather MacKenzie This is definitely helpful!

    Do you remember how the overhead calculation was determined for each support department? These departments don't charge their time to our cost center, so I would think we would have to do an estimate.

    Thanks for sharing your expertise!

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