A Financially Strong Network | 2025 Annual Report

A thriving Easterseals network is not defined by size alone. It is defined by financial stability that enables long-term impact. Affiliation strengthens Easterseals' national ability to grow, invest, and deliver services consistently over time. Three indicators tell that story: revenue growth, operating margin, and program expenditure ratio.

Revenue Growth as a Signal of Network Strength

Revenue growth is a signal of momentum and capacity. Are we expanding, holding steady, or losing ground? For sustainable nonprofit networks, the goal is disciplined, manageable growth that keeps pace with inflation, supports reinvestment, and strengthens resilience over time.¹ 

Over the past three years, the Affiliate Network averaged 13% revenue growth, signaling strong overall expansion and increasing financial capacity to sustain mission delivery. 

At the same time, network-wide averages are influenced by a small number of high-growth Affiliates. When examined individually, the average Affiliate growth rate was 9%, with outcomes varying significantly across the network.

From 2023 to 2024, Affiliate revenue results varied widely. Eight Affiliates grew, including one exceptional outlier that meaningfully increased the network average. For most Affiliates, growth was more moderate: roughly half reported gains in the 2%–12% range, representing the typical experience across the system. 

Taken together, the data shows a viable network that continues to grow with most Affiliates achieving steady, manageable increases and a smaller group experiencing either rapid expansion or financial contraction. This type of reporting across the network helps identify patterns early, allowing Easterseals to strengthen financial stability and support sustainable growth strategies.

Sustaining Operations with Minimal Buffer

Operating margin reflects day-to-day financial sustainability. It shows whether an organization is living within its means and generating the surplus necessary to reinvest, build reserves, and absorb unexpected shocks.

Occasional deficits are not inherently problematic, particularly when tied to planned investments or timing differences in revenue. The greater concern is persistent structural deficits, which may signal over-reliance on reserves, delayed infrastructure investment, or reactive cost-cutting.

Operating margins have remained steady near break-even across the network. A 1.0% margin in 2024 shows careful alignment of revenue and expenses. The tradeoff is that, with only a small surplus, Affiliates have less flexibility to accelerate reinvestment or build additional financial cushion.

Close to break-even margins offer the network minimal buffer to absorb rising costs, economic volatility, or unexpected disruptions without drawing on reserves. 

Viewed over time, a flat operating margin functions as an early warning indicator: the network remains stable, but sustained near-zero margins could constrain future growth if expenses continue rising faster than revenue. Shared visibility into operating margin helps identify pressure points early and encourages disciplined financial management across the network, strengthening Easterseals’ long-term stability.

Program Expenditure Ratio (PER) is Consistently Strong 

Program Expenditure Ratio (PER) measures the share of resources allocated to direct services. For funders and stakeholders, it is commonly used as an indicator of mission investment.

PER has remained consistently strong at 88% over the past two years. This indicates that the vast majority of resources are directed toward program delivery.

Just as important, the stability of this ratio suggests the network is maintaining an appropriate balance—prioritizing mission investment while still supporting the systems and leadership required for long-term sustainability. 

Footnotes

¹ Blackbaud, 12 Top Financial Metrics Nonprofits Need to Know; AFP Fundraising Effectiveness Project, Fundraising Effectiveness Report; Nonprofit Finance Fund, State of the Nonprofit Sector Survey; and related sector analyses on nonprofit financial sustainability.

² 2025 revenue data is not yet available. Network‑wide financial results are typically finalized and reported later in the following fiscal year.

Next Section

Table of Contents