The Nonprofit Sector in Brief: Public Charities, Giving and Volunteering, 2012

This brief summarizes and expands on The Nonprofit Almanac2012, prepared by the National Center for Charitable Statisticsand published by the Urban Institute Press. Both publicationshighlight the growth in the number and finances of 501(c)(3) pub-lic charities, as well as key findings on private charitable contribu-tions and volunteering. See the back cover for details on how toorder a copy of The Nonprofit Almanac 2012.Highlights from the AlmanacnAn estimated 2.3 million nonprofit organization operate in theUnited States, and approximately 1.6 million nonprofits wereregistered with the Internal Revenue Service (IRS) in 2010, anincrease of 24 percent from 2000.nThe nonprofit sector contributed $804.8 billion to the U.S.economy in 2010, making up 5.5 percent of the country’s grossdomestic product (GDP).1nIn 2010, public charities, the largest component of the nonprof-it sector, reported $1.51 trillion in revenue, $1.45 trillion inexpenses, and $2.71 trillion in assets.nIn 2011, private charitable contributions, which include givingto public charities and religious congregations, totaled $298.42billion.nIn 2011, 26.8 percent of adults in the United States volunteeredwith an organization. Volunteers contributed 15.2 billionhours, worth an estimated $296.2 billion. Size and Scope of the Nonprofit SectorAll nonprofit organizationsNumber.In 2010, an estimated 2.3 million nonprofit organizationswere operating in the United States and nearly 1.6 million were reg-Public Charities, Giving, and Volunteering,2012THE NONPROFIT SECTOR IN BRIEF:Amy S. Blackwood, Katie L. Roeger, and Sarah L. PettijohnURBANINSTITUTE1GDP estimates are from the Bureau of Economic Analysis and include nonprofit institutions servinghouseholds. They exclude nonprofit institutions serving government or business. See The NonprofitAlmanac 2012for more information.Brief_Fall_2012:18371_UI_Almanac 10/2/12 5:12 PM Page 1 istered with the Internal Revenue Service (IRS).Registered organizations exclude nonprofits that arenot required to register with the IRS such as organi-zations with less than $5,000 in annual revenue orreligious congregations and their auxiliary groups(although many congregations choose to register).This 1.6 million encompasses a variety of organiza-tions including health, education, arts, advocacyorganizations, labor unions, and business and profes-sional associations. Over the past 10 years, the num-ber of nonprofits registered with the IRS has grownby 24 percent. Finances. Of the nearly 1.6 million nonprofits regis-tered with the IRS, only 40 percent, or 618,062organizations, were required to file a financial returnwith the IRS known as the Form 990.2In 2010,these filing nonprofits reported $2.06 trillion in rev-enues and $4.49 trillion in assets (table 1). Lookingat the financial growth of nonprofits, revenues grewat a relatively healthy rate from 2000 to 2010: 41percent after adjusting for inflation. This is morethan double the growth of the GDP, which grew 16.4percent over the same period. Growth in expensesoutpaced growth in revenues and assets over thedecade.Public CharitiesNumber.Of the more than 30 types of nonprofitorganizations defined by the Internal Revenue Code,501(c)(3) public charities are the most numerous.Public charities include arts, education, health care,human services, and other types of organizations towhich donors can make tax-deductible donations.Nearly 1 million 501(c)(3) public charities were regis-tered with the IRS in 2010, representing nearly two-thirds of all registered nonprofits. The number of reg-istered public charities increased more quickly thanother types of nonprofits, growing 42 percent overthe decade. Public charities also make up a largershare of the nonprofit sector in 2010.Finances.Public charities that collected more than$50,000 in gross receipts in 2010 were required tofile a Form 990 or Form 990-EZ. Nearly 60 percentof organizations filing a Form 990 were public chari-Table 1. Size and Financial Scope of the Nonprofit Sector, 2000-2010% change,% change, 2000-20102000200520102000–10"(inflation adjusted)All registered nonprofits1.26 million1.41 million1.56 million23.6 –Reporting nonprofits444,161552,569618,06239.2 –Revenues ($)1.15 trillion1.63 trillion2.06 trillion78.340.8Expenses ($)1.01 trillion1.48 trillion1.94 trillion91.851.5Assets ($)2.57 trillion3.50 trillion4.49 trillion74.838.1Public charities, 501(c)(3)688,600847,954979,90142.3 –Reporting public charities249,859313,164366,08646.5 –Revenues ($)837 billion1.17 trillion1.51 trillion80.942.9Expenses ($)750 billion1.08 trillion1.45 trillion94.053.2Assets ($)1.50 trillion2.07 trillion2.71 trillion80.642.6The Nonprofit Sector in Brief2Sources: Urban Institute, National Center for Charitable Statistics, Core Files (Public Charities, 2000, 2005, and 2010); and Internal Revenue Service Business Master Files, Exempt Organizations (2000–11). Notes: Reporting public charities include organizations that filed IRS Forms 990 and had