1. Choose three not-for-profit organizations of interest to you, and locate their annual report or financial statements. Annual reports can usually be found on the organization's website.

2. Find the line item totals for the following in the financial statements/annual report:

Total revenue,

Program service expenses, and

Total expenses.

3. Calculate the ratio of the program service expenses to the total expenses. Keep track of the results in a chart that includes the name of the organization, the website where the financial information was found, the three items in step 2, and the calculated program expense ratio. What about the ratio of total expenses to total revenue? Conclude your comments with the organization you would most want to contribute to if you were an interested donor.