ABSTRACT
This research aims to determine the size effect in the ratio of administration costs to total
expenditures (ACE) on charities and determine the best functional model to describe the relationship
between the size and the ratio of administratition costs to total expenditures (ACE) on charities. The
size of the organization represented by the total income, total assets, and total expendiures. The
sample used consists of 16 financial statements in Indonesia from 2006 to 2009. The effect of size on
the ratio of administration costs to total expenditures (ACE) was tested using panel regression
analysis and to search a functional model using some regression analysis. These results indicate that
the total revenues and total assets significantly influence the ratio of administration costs to total
expenditures (ACE). This shows that the total revenues and total assets can be used to estimate
expenditures for administration used as a measure of efficiency. In the research also showed that the
functional model that can describe the relationship between size and ratio of administration cost to
total expenditures (ACE) is an inverse function of the total revenue as a representative of the size.
