An Explanation of Administrative Costs
Over 97 cents of every dollar donated to HarvestCall goes directly to the work of proclaiming Christ and serving others through our many ministry programs in the USA, Haiti, Jamaica, Mexico, Europe and beyond.*
This is calculated by following the non-profit sector’s standard method as defined by IRS Form 990.
If we were to include the value of volunteer time and donated items (gifts-in-kind) as revenue, as many organizations do, then our overhead would actually be much lower as a percentage.
Proclaiming & Serving= this includes everything spent by our ministry programs, such as operating Hospital Lumiere, drilling wells, distributing Bibles, providing aid to Europe, rebuilding disaster-wrecked homes in the USA, etc. Missionary support is also included in this category as well the portion of staff labor that can be directly and specifically linked to the operation of our ministry programs. On Form 990, this is “Program service expenses.”
Administrative= covers the costs of computer equipment, utilities, office rent, travel, etc. and the portion of staff time spent on general management and administration. On Form 990, this is “Management and general expenses.”
Communications= provides funds for keeping the brotherhood informed of needs and opportunities via mailings, website, video, email, etc. Also includes costs for benefit events. On Form 990, this is “Fundraising expenses.”
*A word of caution… We were initially reluctant to publish these numbers because we do not want to imply that organizations with higher costs are in some way less worthy of support. The efficiency percentage is not a definitive way to evaluate an organization. Administrative costs are necessary and allow for effective stewardship of donations. Some non-profits require more administration to carry out their mission than others. We are blessed by a huge number of willing volunteers in all levels of HarvestCall, which keep our costs low relative to the funds received.