Government Spending on Nonprofits Has Reached $319 Billion, up from $149 Billion in 2016

Government funding to nonprofits has surged over the past decade, raising major questions about taxpayer accountability, government grants and how public money is being spent. A Center Square investigation found that the number of nonprofits receiving government funding increased from roughly 56,000 in 2016 to more than 100,000 in recent years. Government grants reported by nonprofits also grew from approximately $149 billion in 2016 to roughly $319 billion in 2022 and 2023. The investigation examines where taxpayer dollars are going, how much nonprofit organizations rely on government funding, executive compensation, and whether taxpayers are getting the results they are paying for. Because nonprofits report government grants on IRS Form 990, the data provides a broad look at the flow of public money into the nonprofit sector. The next phase of the investigation will examine individual government contracts and spending in greater detail. How much taxpayer money should go to nonprofits? And what accountability should come with it? Greg Bishop discusses the investigation with The Center Square's Enterprise and Investigative Unit. Subscribe for more reporting on government spending, taxes, state budgets, economic policy and how decisions made by government affect taxpayers.