What is a charity's overhead ratio, and what is normal in Canada?
A charity's overhead ratio is the share of its total spending that went to management, administration and fundraising rather than to programs. Across the 51,298 Canadian operating charities where it can be computed from F2024 filings, the median is 12%; half sit between 5% and 26%.
How it is computed
(management & administration + fundraising) ÷ total spending
(5010 + 5020) ÷ 4950 on the T3010 · self-reported by the charity, not audited by Charity Compass
Where the numbers come from
Every registered charity in Canada files a T3010 return with the Canada Revenue Agency each year. Line 5010 reports management and administration, line 5020 reports fundraising, and line 4950 reports total expenditures. Divide the first two by the third and you have the overhead ratio. The figures are self-reported by the charity and are not audited by Charity Compass.
What is a normal overhead ratio?
There is no official target. Charity Intelligence treats 5% to 35% as the range where most well-run charities sit, and Charity Compass uses the same range as context, not as a grade. In the F2024 data, 26% of operating charities report overhead under 5% and 18% report over 35%.
Why very low overhead is not automatically good
A charity reporting close to 0% overhead usually has not itemized its administration and fundraising, or it runs almost entirely on volunteers. It does not mean the work is better. Rent, bookkeeping, insurance and the staff who run programs cost money, and a charity that reports none of it is telling you less, not more.
Why high overhead is not automatically bad
Some work is administration-heavy by nature: advocacy, research, small organizations in their first years, and charities that run large fundraising events. A high figure is a reason to read the charity's own reporting, not a verdict. Charity Compass shows the number, the range, and the source, and leaves the judgment to you.
How Charity Compass uses it
Overhead is one of four ingredients in our search ranking, worth 15% by default. It rewards charities inside the 5% to 35% range and gives no extra credit below 5%, so a "zero overhead" filing does not float to the top. Every result card shows the figure, the T3010 lines, and a link to the public record.
Real examples
Three analyst-rated charities with overhead near the 12% median, from their F2024 filings:
- MUSLIM ASSOCIATION OF CANADA
MISSISSAUGA, ON·revenue $56.1M2 of 5 stars, Charity Intelligence T2
0%overhead · T1
- Canadian Hearing Services Services canadiens de l'ouie
TORONTO, ON·revenue $29.7M4 of 5 stars, Charity Intelligence T2
0%overhead · T1
- INTERVAL HOUSE
ETOBICOKE, ON·revenue $5.2M2 of 5 stars, Charity Intelligence T2
0%overhead · T1
Chosen as the analyst-rated charities with revenue over $1M whose figure sits nearest the median; not a recommendation.
Common questions
- Is a lower overhead ratio always better?
- No. Below about 5% the figure usually reflects incomplete itemization rather than efficiency. Compare charities within the same kind of work, and read what the charity says it does.
- Does overhead include salaries?
- Salaries for management and administration are in line 5010. Salaries for staff who deliver programs are counted as program spending, line 5000, not overhead.
- How current is the overhead figure on Charity Compass?
- It comes from the charity's most recent F2024 T3010 return published by the CRA. Filings arrive a year or more after the fiscal year ends, so read every figure as last reported, not live.
Search charities and see each one's overhead
Figures: CRA List of Charities open data, F2024 release, computed across 72,356 operating charities where the lines exist · self-reported by each charity · last reviewed 2026-09-15. Charity Compass is not affiliated with the CRA or Charity Intelligence.