Community Platform

Financial Analysis: Surplus Margin Ratio
for Reporting Public Charities in CLP (Latest Returns)

The Surplus Margin Ratio is the surplus (or deficit) divided by total revenue.
It is simply a measure of profitability. A surplus margin ratio of less than zero indicates that expenses exceed revenues, and a surplus margin ratio of greater than zero indicates that revenues exceed expenses.


A note on IRS Form 990 financial ratios:  Although useful and informative as indicators, ratios are only one type of measure of the financial health and operations of a nonprofit. Financial ratios cannot tell you the full story of nonprofit's operations and impact. Click here to learn more.
Ratios are calculated as the ratio of state totals of the numerator and denominator for each ratio — not as medians or average of each organization.