Nonprofit Sustainability Ratio Calculator
Nonprofit Sustainability Ratio Calculator
How dependent is your organization on grant funding? This ratio measures what portion of total revenue comes from earned income versus grants and donations - a key indicator funders themselves increasingly look at.
Sustainability Ratio% = (Earned Revenue / Total Revenue) x 100
Example
$50,000 earned revenue, $450,000 grant revenue:
Total Revenue = $500,000 → Ratio = (50,000/500,000) x 100 = 10.0% (moderate grant dependency)
Why Funders Care About This Ratio
Funders increasingly favor organizations demonstrating progress toward diversified, sustainable funding models rather than complete grant dependency - a single lost or non-renewed grant can be financially devastating for an organization with little to no earned revenue base to absorb the shock, which is exactly the risk this ratio helps quantify.
What Counts as Earned Revenue
Earned revenue includes program fees, product or merchandise sales, membership dues, and service contracts - essentially any revenue generated through the organization's own activities rather than received as a grant, donation, or gift.