What does AFR mean for charities?
Category:
business and finance
non profit organizations
Each organization's listing in the CFC Charity Directory contains a number the government calls the Administrative and Fundraising Rate (AFR). It is intended to help donors understand the administrative overhead of participating charities.
Similarly, you may ask, what is a good AFR for a charity?
Skimming the CFC Charity List you will see AFR percentages like 1.8%, 15.4%, 25.5%, 41.7%, and even 81.8%, and everything in between. The AFR percentage is not a fixed amount, it varies year to year. There is much more that goes into the AFR percentage, and sometimes a higher percentage is a good thing.
Our Charity Rating Process.
Charity A | Charity B | |
---|---|---|
Program Spending Efficiency %: | 95% | 82% |
Besides, what does AFR stand for in CFC?
operating costs
The typical charity spends 75 percent of its budget on programs, according to CharityNavigator. Look for nonprofits that hit or come close to the benchmark. The rest of a typical charity's budget goes to administrative costs (15 percent) and fundraising (10 percent).