How is the percentage a charity spends on administrative expenses typically calculated? Is it typically calculated using the management expenses, the fundraising expenses, or both combined? Is it calculated as a percentage of total expenses, or total revenue?
Right now I'm using the values from Part I Line 12 on the first page of the Form 990 for the total revenue and the totals from Part IX Line 25 on page 10 for the total spent on expenses (management, fundraising, and combined). Is that correct?