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Hello Sir!
Can you please explain the answer to this, I’m a bit confused with the terminology of effectiveness.For a charitable organization providing relief services to underdeveloped economies, which one of the following performance measurements would be the most suitable measurement of the effectiveness in the use of the charity’s aid funds?
Percentage of funds spent on frontline activities
The ratio of volunteer helpers to full-time employees in the organization
Size of operating surplus (fund income less expenditure)
Total spending by the charity on its operationsCORRECT ANSWER:
Percentage of funds spent on frontline activitiesWhy not total spending by the charity on its operations?
The charity will be spending money on things like administration, which do not actually help people directly (and some of the money might well be wasted).
It is the frontline activities that are directly helping people, so the more they spend on them then the more effective they are.
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thank you for the explanation sir!
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