Interpret ratios without rankings
See this course’s project requirements
A fictional giving decision file with identity checks, mission fit, financial statement comparison, outcome uncertainty and a capped giving plan.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A fictional identity check and real verification plan.
- A mission/use-fit comparison with restriction conditions.
- A financial position/performance/liquidity bridge.
- A defined ratio and unit-cost comparison with non-ranking limits.
- A completion/outcome claim check and restriction evidence questions.
- A capped fictional giving decision and renewal/verification conditions.
Review and revise
Use these criteria to check your work and choose what to improve.
- Identity: practice versus actual status verification is clear.
- Finance: position/performance/restriction ratios reconcile.
- Claims: outcome and program scope limits are explicit.
- Decision: budget, use and renewal conditions permit a hold without payment.
Want more background?
The idea in everyday life
Original fictional practice. All money is USD. No account, payment, personal record or outside participation is required. Entirely fictional charities: no actual registry finding claimed. A=Pathway Youth, practice ID A001,40-hour mentoring; B=Reading Harbor, practice ID B002,8-hour reading program/books. A assets 200,000/liabilities 50,000, revenue 100,000, expenses 90,000(program 60,000/admin 20,000/fundraise 10,000), cash 50,000 of which 40,000 restricted, monthly unrestricted cost 6,000, enrolled 80/completed 50. B assets 80,000/liabilities 10,000, revenue 80,000, expenses 75,000(program 60,000/admin 10,000/fundraise 5,000), cash 18,000 unrestricted, monthly cost 9,000, enrolled 60/completed 48. A accepts mentoring restrictions; B accepts book-purchase restrictions. Donor fictional monthly resources 300/required commitments 280, maximum giving 20/month; proposed giving 15/month, reserve 5. Payment is never required.
A ratio comparison needs definitions and cannot rank impact alone.
Interpret ratios without rankings — complete worked case
A ratio comparison needs definitions and cannot rank impact alone.
Entirely fictional charities: no actual registry finding claimed. A=Pathway Youth, practice ID A001,40-hour mentoring; B=Reading Harbor, practice ID B002,8-hour reading program/books. A assets 200,000/liabilities 50,000, revenue 100,000, expenses 90,000(program 60,000/admin 20,000/fundraise 10,000), cash 50,000 of which 40,000 restricted, monthly unrestricted cost 6,000, enrolled 80/completed 50. B assets 80,000/liabilities 10,000, revenue 80,000, expenses 75,000(program 60,000/admin 10,000/fundraise 5,000), cash 18,000 unrestricted, monthly cost 9,000, enrolled 60/completed 48. A accepts mentoring restrictions; B accepts book-purchase restrictions. Donor fictional monthly resources 300/required commitments 280, maximum giving 20/month; proposed giving 15/month, reserve 5. Payment is never required.
Fictional financial and participation summary
Paste at A 1.
| AMeasure | BA | CB |
|---|---|---|
| Assets | 200000 | 80000 |
| Liabilities | 50000 | 10000 |
| Revenue | 100000 | 80000 |
| Expenses | 90000 | 75000 |
| Program | 60000 | 60000 |
| Admin | 20000 | 10000 |
| Fundraise | 10000 | 5000 |
| Total cash | 50000 | 18000 |
| Restricted cash | 40000 | 0 |
| Monthly unrestricted cost | 6000 | 9000 |
| Enrolled | 80 | 60 |
| Completed | 50 | 48 |
| Program hours | 40 | 8 |
Copy as plain text
1. 4.1 Interpret
Calculate program spending divided by total expense with named period.
You should see: A 66.67%; B 80%.
2. 4.2 Interpret
Compute program cost per enrolled unit and label denominator.
You should see: A 750/enrolled; B 1,000/enrolled.
3. 4.3 Interpret
List scope/duration/accounting/outcome differences before comparison.
You should see: The two outputs are not equivalent services.
4. 4.4 Interpret
Change A expense classification by 5,000 from admin to program while total 90,000 fixed; ratio 72.22%, not new money or effect.
You should see: A classification change can move a ratio without new results.
What to finish
A defined ratio and unit-cost comparison with non-ranking limits.
Watch for this
Equating low overhead or high program ratio with guaranteed impact.
How can I tell I understand it?
Verify that your completed defined ratio and unit-cost comparison with non-ranking limits meets the three lesson-specific checks and retains the supporting original records.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Read identity, payment, recurring charges, vague claims and gifts-in-kind pitfalls. No donation is made.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
Source & access notes · checked 2026-10-01
Read annual-return/application availability. Course supplies simplified original financial summaries rather than copying a real Form 990 or claiming it proves impact.
Access: Public primary page body opened and relevant sections read through the web reader on 2026-10-01; no account required for reading.
Reuse: Original Life Starter cases, datasets and questions; no source exercise or worked dataset reproduced. Links support further reading.
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