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ACCA Applied Skills · Performance Management · Specific performance analysis issues in not-for-profit organisations and the public sector

A charity's fundraising department raised $480,000 in the year and incurred fundraising costs of $120,000. Last year it raised $400,000 at a cost of $80,000. What was the change in the amount raised per $1 of fundraising cost?

Funds raised per $1 of cost fell from $5.00 last year (400,000/80,000) to $4.00 this year (480,000/120,000), a fall of $1.00, despite total funds raised increasing.

  1. AIt fell by $2.00Correct
  2. BIt fell by $1.00
  3. CIt rose by $1.00
  4. DIt was unchanged

Explanation

This year: 480,000/120,000 = $4.00 raised per $1 spent. Last year: 400,000/80,000 = $5.00. The ratio fell by $1.00, so the correct fall is $1.00, not $2.00.

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