Where Do U.S. Nonprofits Get Their Money? 2024 Revenue Data
Program service revenue accounts for 67% of the U.S. nonprofit sector's $2.3 trillion in total revenue, while contributions and grants make up 20%. But the funding mix varies dramatically by sector and organization size. Here is what 464,924 IRS Form 990 filings reveal.
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Program Service Revenue
67%
Contributions & Grants
20%
Investment Income
10%
U.S. Organizations Analyzed
464,924
Tax year 2024 data from 464,924 U.S. nonprofit organizations with positive total revenue. Revenue source percentages are calculated as share of aggregate sector revenue (dollar-weighted), not averages of individual organization percentages. This means larger organizations have proportionally more influence on the percentages. We continuously update our datasets as new filings become available from the IRS.
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Revenue Sources by Nonprofit Sector
The funding mix varies dramatically across sectors. Healthcare nonprofits earn 89% of revenue from program services (patient fees, insurance reimbursements), while food and agriculture organizations get 80% from contributions. Government grants are a major source for crime & legal (36%), science & technology (36%), and medical research (31%) organizations. Top 15 sectors by number of organizations shown.
| Sector | Contributions | Program Revenue | Govt Grants | Investment | Other | # Orgs |
|---|---|---|---|---|---|---|
| Healthcare | 5% | 89% | 1% | 4% | 2% | 13,847 |
| Mutual Benefit | 1% | 83% | 0% | 13% | 3% | 3,968 |
| Mental Health | 35% | 60% | 21% | 2% | 2% | 6,101 |
| Arts & Culture | 58% | 27% | 9% | 9% | 4% | 28,197 |
| Religion | 67% | 19% | 2% | 10% | 4% | 21,409 |
| Environment | 71% | 20% | 15% | 7% | 3% | 7,921 |
| Food & Agriculture | 80% | 16% | 14% | 2% | 2% | 5,020 |
| Human Services | 45% | 49% | 14% | 4% | 2% | 36,443 |
| Education | 45% | 39% | 14% | 12% | 2% | 41,142 |
| Housing & Shelter | 36% | 55% | 20% | 5% | 3% | 10,781 |
| Recreation & Sports | 32% | 53% | 4% | 3% | 9% | 23,676 |
| Community Improvement | 45% | 43% | 17% | 7% | 4% | 19,022 |
| Youth Development | 67% | 23% | 16% | 5% | 4% | 9,133 |
| Animal-Related | 60% | 29% | 5% | 7% | 4% | 11,147 |
| International | 72% | 4% | 19% | 22% | 1% | 7,516 |
| Total | 245,323 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. Percentages are dollar-weighted (share of aggregate sector revenue). Sectors with 50+ organizations shown.. 15 categories shown.
Get more data →Revenue Sources by Organization Budget Size
Small nonprofits depend heavily on contributions, while large organizations earn most of their revenue from program services. Organizations with $100M+ budgets get 77% from program revenue and just 13% from contributions. Smaller organizations under $250K get nearly half their revenue from contributions.
| Budget Size | Contributions | Program Revenue | Govt Grants | Investment | Other | # Orgs |
|---|---|---|---|---|---|---|
| Under $250K | 48% | 21% | 3% | 14% | 7% | 278,745 |
| $250K - $1M | 50% | 30% | 8% | 13% | 6% | 102,260 |
| $1M - $5M | 47% | 34% | 11% | 14% | 4% | 55,636 |
| $5M - $10M | 44% | 38% | 11% | 14% | 3% | 11,463 |
| $10M - $25M | 38% | 45% | 11% | 14% | 3% | 8,670 |
| $25M - $100M | 29% | 57% | 7% | 12% | 3% | 5,676 |
| $100M+ | 13% | 77% | 3% | 8% | 2% | 2,474 |
| Total | 464,924 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. Percentages are dollar-weighted. All 464,924 organizations included.. 7 categories shown.
Get more data →The Revenue Picture Is More Complex Than You Think
The overall numbers mask enormous variation by sector and size.
When people ask "where do nonprofits get their money?", the instinct is to say "donations." But contributions and grants account for just 20% of the sector's $2.3 trillion in total revenue. Program service revenue — fees for services, tuition, ticket sales, insurance reimbursements — makes up 67%. The nonprofit sector is far more commercially oriented than most people realize.
The Hospital Effect
Healthcare nonprofits alone account for over $1 trillion in revenue, almost entirely from program services (patient fees and insurance). They pull the sector-wide average toward program revenue. Excluding healthcare, contributions and grants make up a much larger share of revenue for the typical nonprofit.
Only 31% of nonprofits rely on contributions for 90% or more of their revenue. Another 12% earn 90%+ from program services. The majority (56%) have diversified revenue streams — a mix of contributions, earned income, and other sources.
Sector Funding Profiles
Five distinct funding models emerge from the data.
Earned Revenue Dominant
Healthcare (89% program revenue), mutual benefit organizations (83%), and mental health (60%) earn most of their revenue from fees for services. These organizations operate more like businesses with a social mission.
Contribution Dependent
Food & agriculture (80%), international (72%), environment (71%), and religion (67%) rely heavily on donor support. These sectors often lack natural fee-for-service models.
Government Grant Reliant
Crime & legal services (36%), science & technology (36%), and medical research (31%) receive a substantial share from government grants. These organizations are vulnerable to policy changes and budget cuts.
Balanced Mix
Education (45%/39% contributions/program), human services (45%/49%), and community improvement (45%/43%) draw from multiple sources. This diversification provides financial resilience.
89%
Healthcare program revenue share
Healthcare nonprofits earn 89 cents of every dollar from program services — the highest of any sector. Food & agriculture nonprofits are the mirror image, earning 80% from contributions.
How Size Shapes the Funding Mix
The shift from contributions to earned revenue tracks closely with organizational growth.
Small nonprofits (under $250K) earn 48% of revenue from contributions and just 21% from program services. As organizations grow, the ratio flips. At $100M+, program revenue accounts for 77% and contributions drop to 13%. This pattern reflects a basic economic reality: scaling through donations alone is extremely difficult. Organizations that grow large almost always develop earned revenue streams.
Under $250K
48% contributions, 21% program revenue. These organizations — 60% of all nonprofits — are fundamentally donor-supported. Investment income (14%) is surprisingly significant, likely from endowment interest at small foundations.
$25M - $100M
29% contributions, 57% program revenue. The crossover point where earned revenue dominates. Government grants peak at the $1M-$25M range (11%) and decline at larger sizes.
$100M+
13% contributions, 77% program revenue. The largest nonprofits — hospitals, universities, health systems — are effectively service organizations funded by fees, tuition, and insurance.
Government Grants Peak in the Middle
Government grants make up 11% of revenue for organizations in the $1M-$25M range but drop to 3% for the largest nonprofits ($100M+). Mid-size organizations are the most dependent on government funding — and the most vulnerable to policy shifts.
Revenue Diversification Matters
Organizations with diversified revenue are more financially resilient.
Among the 464,924 organizations in our dataset, 56% have diversified revenue (no single source exceeds 90% of total revenue, and government grants are below 50%). Meanwhile, 31% are highly concentrated in contributions (90%+ from donations), and 12% are concentrated in program revenue. Only 2% are majority government-grant funded.
Diversified (56%)
259,532 organizations draw from multiple revenue sources. These organizations are better positioned to weather donor fatigue, economic downturns, or government funding cuts.
Contribution-Heavy (31%)
144,232 organizations get 90%+ of revenue from contributions. Heavily exposed to donor retention and economic cycles.
Program Revenue-Heavy (12%)
53,716 organizations earn 90%+ from program services. Stable but vulnerable to market competition and pricing pressure.
Government-Dependent (2%)
7,444 organizations get 50%+ from government grants. Most exposed to policy changes, budget sequestration, and administrative burden.
What This Means for Your Organization
Use these benchmarks to evaluate your own revenue health.
Steps to benchmark your revenue mix
Find your sector
Look at the sector table above to see the typical funding mix for organizations like yours. If your revenue profile differs significantly, understand why.
Compare by size
A $500K arts organization should compare to the Under $250K or $250K-$1M tier, not the sector average (which is skewed by large institutions).
Assess concentration risk
If any single source exceeds 60-70% of your revenue, consider whether that concentration is strategic or a vulnerability.
Track trends
Compare this year's mix to prior years. A gradual shift toward more earned revenue may signal healthy growth. A sudden spike in any source may indicate instability.
Revenue Diversification Is Not Always Better
A food bank that's 80% contribution-funded isn't necessarily unhealthy — that's the norm for the sector. The goal isn't arbitrary diversification but understanding whether your funding mix is sustainable for your specific mission and model.
How This Data Is Calculated
Transparency in methodology builds trust.
Sample Size
464,924 organizations
Data Source
IRS Form 990 electronically filed returns
Period
Tax year 2024
Revenue source percentages are calculated as share of aggregate revenue (dollar-weighted), meaning larger organizations have proportionally more influence. Only organizations with positive total revenue, complete processing status, and no data quality flags are included. Revenue categories are from Part VIII of Form 990: contributions and grants (Line 1h), program service revenue (Line 2g), government grants (Line 1e), investment income (Lines 3-7), and other revenue (Lines 8-11). Government grants are a subset of total contributions and grants.
Dollar-Weighted Percentages
Revenue source percentages are calculated as each category's share of total aggregate revenue, not as an average of individual organization percentages. This means a $100M hospital has 1,000 times more influence than a $100K charity. This approach reflects the actual flow of money in the sector but may not represent the typical small nonprofit's experience.
Revenue Categories
Revenue sources correspond to Part VIII (Statement of Revenue) of IRS Form 990: contributions, gifts, and grants (Line 1h); program service revenue (Line 2g); investment income (Lines 3-7); and other revenue (Lines 8-11). Government grants (Line 1e) are reported separately but are a subset of total contributions and grants.
Sector Classification
Sectors are determined by the first letter of each organization's NTEE code as assigned by the IRS Business Master File. Organizations without an NTEE code are excluded from sector-level analysis but included in overall and budget-tier calculations.
Exclusions
Organizations with zero or negative total revenue are excluded. Only filings with complete processing status and no data quality flags are included. This ensures clean, reliable data but may exclude some recently filed or corrected returns.
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