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SIMULATION OF SCENARIOS FOR SGO CONSIDERATION

Under 26 U.S.C. § 25F, at least 90 percent of a Scholarship Granting Organization's income must go to scholarships, but running the organization involves far more than that requirement alone; transaction fees, technology, accounting, office space, and other administrative costs all add up. This simulator lets prospective SGO leaders explore how those costs shift with the number of donors and students served, and compare approaches to covering operational expenses, so they can plan accordingly.

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Instructions:

  1. Please input the assumptions/ variables in the yellow shaded areas
  2. This calculator's formulas are fixed and applied identically for every scenario, so results stay consistent for comparison
  3. Target to keep total direct operating cost around 7%- which will help cover fixed costs plus leave a reasonable surplus.
  4. "Protip" - other variables remaining equal, higher the ratio of donors to students, the better the financial results

NET INCOME/ (LOSS)