What is a nonprofit?
A nonprofit organization operates under law for educational, charitable, social, religious, civic or humanitarian purposes. A nonprofit organization is formed by members, but doesn’t have shareholders. The organization contains directors and officers that may not receive any profit. Management is paid reasonably for the service they are providing. In order for the organization to receive contributions they must have their contributors submit an application to receive the deductible on taxes. The corporation is also examined to make sure it’s abiding by state laws and sticking with nonprofit purposes.
How many nonprofits are out there?
There are 1,617,301 tax-exempt organizations. They include 1,046,719 public charities, 115,915 private foundations, and 454,667 other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues. In 2009 nonprofits accounted for 9% of all wages and salaries paid in the U.S.
How much do nonprofits raise?
In 2008, public charities reported over $2.6 trillion in total assets. In 2009, individuals, foundations, and corporations raised $303.75 billion dollars. This is a 3.2% decrease adjusting to inflation from 2008. The revenue broken down was 20% contributions, gifts, and government grants. 70% came from program service revenues, which is government fees and contracts. The last 10% came from “other” sources which can include; dues, rental, income, special event income, and gains from goods sold. In 2010 approximately 26.3% of population over the age of 16 volunteered for nonprofit organizations.
