Measuring Our Not-For-Profit Performance
One way of measuring a charity’s performance is to consider its administrative costs as a percentage of revenues or expenses. Charity Navigator, in its 2002 report entitled “Evaluating Charities: Why the Numbers Count”, states that 3 out of 4 charities examined spend less than 15% of their revenues on administrative costs.
The Lake County Land Reutilization Corporation’s (Land Bank) Administrative costs consist of employee related expenses, office expenses, business insurance and professional fees. From a historical perspective, the Land Bank has spent to date 11% of its revenues on its administrative costs.
Charity Navigator also reports that nearly one-half of the charities reported having accumulated at least one years’ worth of working capital to fall back upon during economic downturns. The Land Bank after considering its current liabilities, has at least one year’s worth of working capital in its coffers.
While the aforementioned measures are important, the Land Bank’s goal is to revitalize long abandoned or blighted properties and return them to productive use. If not earmarked for conservation or exempt purposes, properties that are placed back into the marketplace will generate much needed tax revenues for vital public safety services, schools, libraries, and so many other entities. As the Land Bank disposes of the parcels it controls, we will be able to estimate the tax revenues generated by each parcel. It is our intent to report those figures here in the future.