Operations

Staff and financial resources are important to monitor for smaller foundations who are looking to grow, and for larger foundations who are looking for the flexibility to diversify their offerings.

Revenue mix

Administrative fees are the main source of community foundation operating revenues field-wide. Larger community foundations are more likely to supplement fees with fee for service revenues, while smaller community foundations tend to do more direct fundraising to support operations. Community foundations often seek to generate surplus revenues that could be reinvested into community leadership initiatives.

Averages were used to total 100%. (n=168)

Asset size range

Size of foundation	Administrative fees	Fees for service	Fundraising: operations	Fundraising: programmatic	Distribution from endowment/reserve	Other revenue
$0-$25M	62%	3%	19%	6%	6%	5%
$25-$50M	70%	0%	10%	3%	10%	6%
$50-$100M	68%	0%	13%	5%	9%	4%
$100-$250M	73%	1%	11%	5%	6%	4%
$250-$500M	80%	0%	6%	0%	6%	8%
$500M+	77%	5%	3%	5%	5%	5%
All	72%	2%	10%	4%	7%	5%

Operational expenses

It is typical for two-thirds of operating expenses to go toward staff capacity, regardless of the size of the community foundation.

Averages were used to total 100%. (n=168)

Asset size range

Size of foundation	Personnel expenses	Non-personnel expenses
$0-$25M	60%	40%
$25-$50M	63%	37%
$50-$100M	62%	38%
$100-$250M	70%	30%
$250-$500M	73%	27%
$500M+	68%	32%
All	66%	34%

Surplus vs. subsidy

Just over one quarter of all annual survey participants reported any level of operating deficit in 2020 - which is unchanged from the year prior. For these community foundations, and more generally, operating deficits are covered by unrestricted funds, which limits their flexibility to invest in foundation-operated initiatives and community leadership.

Calculated as revenues divided by expenses: Significant surplus >125%; Modest surplus = 105%-124%; Breakeven = 95%-104%; Modest subsidy = 75%-94%; Significant subsidy <75% (n=168)

Significant subsidy	Modest subsidy	Breakeven	Modest surplus	Significant surplus
6%	12%	23%	41%	18%

Expense to asset ratio

The field median expense to asset ratio decreased slightly in 2020 from the year before (1.2 percent in 2019), though the median for small community foundations increased significantly over that same time, from 1.6 percent to 2.0 percent. As is generally the case, larger community foundations achieve an economy of scale that results in typically lower ratios than for smaller community foundations, though operating model differences at individual community foundations will have an impact on this metric. (n=168)

Funds per full-time equivalent

Larger community foundations tend to maintain relatively complex operating models, requiring a higher number of specialized staff who will be less likely to manage donor funds. (n=173)