WHO CONTRIBUTES TO CHARITABLE ORGANIZATIONS?
Nonprofit organizations receive operating income from a variety of sources. A 1996 study indicated that only 10.1 percent of revenues for a sample of nonprofits came from tax-deductible contributions. The other 89.9 percent came from program service revenues (71.7 percent), government grants (7.9 percent), and other sources (10.3 percent). 5 Different types of nonprofit organizations tend to receive money from different sources. For example, hospitals and nursing homes, although they are generally nonprofits, offer services they can price and sell. These and other groups rely heavily on fees and sales. Homeless and poverty shelters, on the other hand, rely heavily on charitable donations. Private donations also come from a variety of sources. There are four major donor categories: individuals, foundations, corporations, and bequests. Each has unique characteristics that influence which charities are supported and at what level. In 1999, as Chart 2 shows, individuals contributed the vas
