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Nonprofit-Government Contracts
and Grants: Findings from the 2013
National Survey of Nonprofits
Sarah L. Pettijohn and Eli...
Introduction
• A collaboration with National Council of
Nonprofits and funded by Bill and Melinda Gates
Foundation
• Secon...
Methodology
• National, randomly drawn sample of 501(c)(3)
public charities with $100,000 or more in
expenses
• Stratified...
Size and Scope of Government
Financing
Type of Organization
Arts, culture, and humanities
Education
Environment and animal...
Changes in Organizational
Funding
Federal government agencies

47

State government agencies

36

43

Local government age...
Limits on Administrative
Expense Recovery
28 27
24

18

18

9

0%

15

14

11 10

10

1–3%

4–7%

Program administration
T...
Other Items Included in the Report
• Administration of government
contracts/grants
– Payment methods
– Cost-sharing contra...
Size and Scope of Government
and Human Service Nonprofits
• Nearly 200,000 contracts/grants with almost
30,000 nonprofits
...
Problems Reported by Human
Service Nonprofits, 2009 and 2012
37

39

33
39

37

39

33

39

44

33

26

23

31

44

42

20...
Late Payments:
Human Service Nonprofits
Average Amounts Governments Still Owe Human Service
Nonprofits, by Level
Average a...
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  1. 1. Nonprofit-Government Contracts and Grants: Findings from the 2013 National Survey of Nonprofits Sarah L. Pettijohn and Elizabeth T. Boris with Carol J. De Vita and Saunji D. Fyffe Center on Nonprofits and Philanthropy The Urban Institute December 5, 2013 The Urban Institute
  2. 2. Introduction • A collaboration with National Council of Nonprofits and funded by Bill and Melinda Gates Foundation • Second national study of government contracts and grants with nonprofits • Goals of study: – Assess size and scope of government financing – Examine key problems and improvements – Document administration of government funding The Urban Institute
  3. 3. Methodology • National, randomly drawn sample of 501(c)(3) public charities with $100,000 or more in expenses • Stratified by state, type, and size of nonprofit – Types not included: • Hospitals and higher education as well as nonprofits not likely to have government money • 33.3 percent response rate • All estimates are appropriately weighted The Urban Institute
  4. 4. Size and Scope of Government Financing Type of Organization Arts, culture, and humanities Education Environment and animals Health Human services Other Overall The Urban Institute Number of Organizations 7,189 3,828 2,359 6,729 29,483 6,114 55,702 Dollar Amount of Contracts and Grants ($ millions) 1,081 5,223 1,306 36,448 80,565 12,769 137,392
  5. 5. Changes in Organizational Funding Federal government agencies 47 State government agencies 36 43 Local government agencies 17 38 39 19 46 15 Individual donations 33 Private and community foundations 32 41 27 Government fees 30 44 26 Participant fees Decreased The Urban Institute 24 Stayed the same 33 44 Increased 35 32
  6. 6. Limits on Administrative Expense Recovery 28 27 24 18 18 9 0% 15 14 11 10 10 1–3% 4–7% Program administration The Urban Institute 17 8–10% 11–15% More than 15% Organizational administration
  7. 7. Other Items Included in the Report • Administration of government contracts/grants – Payment methods – Cost-sharing contracts/Matching grants – Limitations on program and organizational overhead – Accountability and reporting requirements • State level analyses (forthcoming) The Urban Institute
  8. 8. Size and Scope of Government and Human Service Nonprofits • Nearly 200,000 contracts/grants with almost 30,000 nonprofits • Nonprofits reported $81 billion in government revenue • Average nonprofit has 7 contracts/grants • Median is 3 contracts/grants The Urban Institute
  9. 9. Problems Reported by Human Service Nonprofits, 2009 and 2012 37 39 33 39 37 39 33 39 44 33 26 23 31 44 42 2012 2009 22 24 19 26 29 30 52 47 50 2012 2009 2012 24 25 28 24 27 32 2009 2012 2009 2012 2009 Complexity of/time Complexity of/time Payments not Government Late payments required by required for covering full cost of changes to (beyond contract application reporting* contracted contracts or grants specifications) process* services* midstream* Not a problem Small problem Big problem * Differences are significant at the 95 percent confidence interval The Urban Institute
  10. 10. Late Payments: Human Service Nonprofits Average Amounts Governments Still Owe Human Service Nonprofits, by Level Average amount ($) Level of Government 2009 2012 Local* 103,535 102,328 State* 231,749 190,633 Federal* 385,476 110,896 * Differences are significant at the 95 percent confidence interval The Urban Institute
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