2. Agenda
• What is a Nonprofit?
• Nonprofit Distinguishing Characteristics
• Nonprofit Resources: Where does the
money come from?
• Nonprofit Life Cycle
3. Your Presenter
• Alliance CEO 5 Years
• NPower
• Former Lobbyist in AZ
• 25 years Nonprofit Jobs/Boards
• Chair, National Council of Nonprofits
4. Nonprofits in the U.S.Nonprofits in the U.S.
-80,000
20,000
120,000
220,000
320,000
420,000
520,000
620,000
720,000
820,000
920,000
1982 2005
200% Increase in Number of
Public Charities
• Nonprofits now
employ 10% of the
nation’s private
workers, 25% in
Washington, D.C.,
and 32% in some
other cities
5. Nonprofits in the U.S.Nonprofits in the U.S.
• Nonprofits represent
$800 billion in annual
purchasing power
• Nonprofit expenditures
account for 8.5% of
national income
• Nonprofit sector is the 3rd
largest contributor to the
U.S. GDP, after retail
trade and wholesale trade
10. What is a Nonprofit?
• Other Terms: Non-profit, Not For Profit, Charity,
NGO, Voluntary Org, Social Sector, Third
Sector, Independent Sector, 501c3, Tax Exempt
• Community Investment Organization
• Community Benefit Organizations
• Social Profit Organization
27. Earned Government Donated
Human Services 25% 60% 15%
Arts 50% 10% 40%
Health 54% 45% 1%
Education 70% 10% 20%
International 20% 20% 60%
Income Sources by sub-sector
28. Comparative Gross Expenditures
U.S. GDP ca. $12 trillion
Government Expenditures ca. $4 trillion
Nonprofit Expenditures ca. $1 trillion
Sources of Nonprofit Income*
(all subsectors)
Earned 43%
Government 32%
Donated (All sources) 25%
Earned Gov't Donated
Human Services 25% 60% 15%
Arts 50% 10% 40%
Health 54% 45% 1%
Education 70% 10% 20%
International 20% 20% 60%
Income Sources by Sub sector*
29. Sources and Uses ofSources and Uses of
Charitable ContributionsCharitable Contributions
Donations to Nonprofits, in Billions
Individual
$229
74%
Foundation
$39
13%
Bequests
$23
8%
Corporate
$16
5%
Source: Giving USA Foundation, Giving USA
Total Giving = about $300 billion
30. Sources and Uses ofSources and Uses of
Charitable ContributionsCharitable Contributions
Giving by Nonprofit Type, in Billions
Religion
$102
37%
Foundations
$28
10% Human Services
$30
10%
Environment/Animals
$7
2%
International
$13
5%
Arts/Culture
$14
5%
Social Benefit
$23
8%
Health
$23
8%
Education
$43
15%
Source: Giving USA Foundation, Giving USA
31. 31% of private
foundation grants go to
education ($54.9 M);
another 14% are
allocated to Social and
Human Services ($23.9
M) and another 12.6%
($22.4 M) are allocated
to Community
Development
Where Arizona FoundationWhere Arizona Foundation
Dollars Are GoingDollars Are Going
Source: Arizona Grantmakers Forum
