Philanthropic
Kim H
PublicandPrivate.pptxPublic and Private
Nonprofit Organizations
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Nonprofit organizations play a key role in social and economic well-being of a country.
Most nonprofit organizations are tax-exempt
501 (c) (3)
Internal Revenue Code
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Who decides?
Internal Revenue Service (IRS)
Based on public involvement in operations
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Segments
Public Charities
Public Nonprofit Organizations
Private Foundations
Private Nonprofit Organizations
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Most Common?
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Public Nonprofit Organizations
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Public Nonprofit Organizations
Churches
Homeless Shelters
Hospitals
Educational Sites
Universities
Medical Research Institutions
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Must have a diversified board of directors
Represents the publics interest
More than half of the board must be unrelated and unable to receive compensation as employees of the institution
Public Nonprofit Organizations
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Rely more heavily on public support
33% of income must come from;
Small Donors
Governments
Other Charities
Funds must be used directly to support organization initiatives
Less regulated than private nonprofit institutions
More susceptible to public opinion and scrutiny
Public Nonprofit Organizations
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Private Nonprofit Organizations
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Can be controlled by;
Family
Small group of people
Income derived from;
Smaller pool of donors
Individual investment income
Typically subject to more restrictions
Large penalties
Private Nonprofit Organizations
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Why Private?
Level of Control
Small private donations operate fairly independently
Less public accountably
More federal regulations
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Nonprofit Organization Highlights
Approximately 1.56 million nonprofits were registered with the Internal Revenue Service (IRS) in 2015, an increase of 10.4 percent from 2005.
The nonprofit sector contributed an estimated $985.4 billion to the US economy in 2015, composing 5.4 percent of the country's gross domestic product (GDP).[1]
Of the nonprofit organizations registered with the IRS, 501(c)(3) public charities accounted for just over three-quarters of revenue and expenses for the nonprofit sector as a whole ($1.98 trillion and $1.84 trillion, respectively) and just under two-thirds of the nonprofit sector's total assets ($3.67 trillion).
In 2017, total private giving from individuals, foundations, and businesses totaled $410.02 billion (Giving USA Foundation 2018), an increase of 3 percent from 2016 (after adjusting for inflation). According to Giving USA (2018) total charitable giving rose for the fourth consecutive year in 2017, making 2017 the largest single year for private charitable giving, even after adjusting for inflation.
An estimated 25.1 percent of US adults volunteered in 2017, contributing an estimated 8.8 billion hours. This is a 1.6 percent increase from 2016. The value of these hours is approximately $195.0 billion.
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Volunteers
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Brand Recognition of top 5 Profitable Nonprofits
Take out a sheet of paper
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#1
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#2
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#3
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#4
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#5
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