Operating budget is the total expenditures minus pass-through grants and benefits
The purpose of the Operating budget metric is to see what an organization actual operates on, by eliminating the pass-through grants and other benefits that organizations give to other organizations, government agencies, and individuals. For the standard Form 990, the equation is:
Operating budget = Total expenditures - grants to governments, organizations, and individuals - benefits paid to members
When looking at the fields in the Form 990, Part IX, the equivalent formula is:
Operating budget = 25A - 1A - 2A - 3A - 4A
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