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A well-run nonprofit can expect to spend between 20-30% of annual revenue on administrative and overhead expenses.
For the comprehensive suite of back-office services, legal framework, and capacity-building support that Tides Center provides, projects pay only nine percent of their annual revenue. For projects with revenue in excess of $1 million in a calendar year, the administrative fee drops to six percent. Tides Center has not increased its fees in over 12 years, and the fees are in line with other fiscal sponsors practicing similar models of fiscal sponsorship.
The fee for all funding from government sources is 15 percent. The fee is higher for this type of funding because government grants entail significantly more auditing and reporting services.
Finally, projects should reserve a minimum of one to two percent of gross annual revenue for insurance costs.
