Tax profit organization.docx - 1 Funding How do NPOs actually get funding 1 Fees for goods and services Tuition hospital fees bookstore sales etc 1

Tax profit organization.docx - 1 Funding How do NPOs...

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1. Funding – How do NPOs actually get funding? 1. Fees for goods and services: Tuition, hospital fees, bookstore sales, etc. 1. Commercial activities, provided they’re related or only insubstantial if unrelated 2. Membership fees and dues 3. Government grants – much larger % of total 4. Donations/private philanthropy – surprisingly small amount, about 19% of all funding 5. Investment income/endowments 6. Different sorts of NPOs have different funding structures, concentrations 1. Education funding 1. Elementary/HS – most from gov’t 2. Higher education – most from fees and sales, plus endowment and philanthropy. 2. Religion – 95% from private philanthropy (which includes fees that people
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