Source: Tax Foundation
Contrary to what you might expect, charitable organizations do not make the bulk of their revenues through donations. In 2012, only 21.3% of revenue for 501(c)3 organizations came from contributions, gifts, and grants. Instead, charitable organizations in the United States are largely funded by "program service revenue" – such as the tuition received by non-profit universities, or the medical bills collected by non-profit hospitals.
The non-profit sector represents a substantial share of the United States economy, totaling $887.3 billion and accounting for 5.4% of GDP (about the same size as the information technology industry.) It is also one of the most rapidly growing parts of the economy, with overall employment increasing by 17% between 2000 and 2010, significantly faster than private business job growth. Now, the recent IRS figures confirm that charitable organizations are receiving higher revenues than ever.
Monday, August 10, 2015
The Non-Profit Sector Share Of The US Economy Is As Large As The Information Technology Sector
Posted By Milton Recht
From Tax Foundation, "Revenue Figures for Charitable Organizations Are at an All-Time High" by Scott Greenberg:
Posted 8/10/2015 06:59:00 PM