Revenue Equivalency Calculator
How much gross revenue would your organization have to generate from patient care to equal the amount of net revenue generated by your foundation? (Hint: probably a LOT.)
Input your revenue and expenses for patient care and philanthropy into our calculator to find out. Use the results to make the case to your senior executive team about the value of philanthropy to your organization's financial health.
Note: This calculator only works when your organization's patient care margin is greater than zero, i.e., your organization is not losing money on its patient services operations.
For questions about this calculator, email us at [email protected].
Definitions
Total Fundraising Revenue: The comprehensive amount of money raised through all fundraising activities and channels. This includes, but is not limited to, donations from individuals, corporations, and foundations; income from fundraising events; planned giving; and grants.
Total Fundraising Expense: All costs directly and indirectly incurred in the process of generating fundraising revenue. This includes expenses related to fundraising events, marketing and communications, salaries and benefits for staff who directly and indirectly support fundraising efforts, professional fees (e.g., legal, tax, accounting), contracted services (e.g., consulting), travel, dues/subscriptions/ memberships, software subscription/maintenance, rent/occupancy, supplies, printing, postage, mailing, and cultivation expense. Do not include depreciation expense.
Total Patient Care Net Revenue: Total income generated from all patient care services provided by the hospital, including but not limited to inpatient services revenue, outpatient services revenue, and pharmacy revenue after adjusting for contractual adjustments, patient discounts, bad debt allowance, and charity care.
Total Patient Care Expense: All costs incurred by the hospital directly related to the provision of care to patients, including salary and benefits of clinical staff, including doctors, nurses, and technicians; supplies and drugs used in patient care; expenses associated with operating departments that provide direct patient care, including but not limited to emergency services, labor and delivery, and patient wards; and costs for services that directly support patient care, such as radiology, laboratory, and physical therapy.
Do not include operational costs not directly tied to patient care, such as administrative expenses (including salaries and operating costs for non-clinical staff), facility maintenance, depreciation, and interest expenses.