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About 30% of US nonprofits receive government grants, totaling $303 billion annually. Large nonprofits are more reliant, and many rely on grants for over half their revenue. Private foundations would need a massive increase to replace this funding.
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Cathleen Clerkin, Ph.D. (she/her), Anna Koob (she/her), and David Wolcheck (he/him) February 6, 2025 Recent developments around an Office of Management and Budget memorandum to freeze federal grants and loans has put the nonprofit sector in the spotlight. But just how many nonprofits receive government grants? And how big a role do government grants play in the nonprofit sector? Hereβs what we know.Β Roughly 30% of U.S. nonprofits filing an IRS Form 990 report receiving grants funding from the government.i This translates to over 100,000 nonprofits being awarded a total of $303 billion annually.Β The proportion of nonprofits receiving government grants is fairly consistent across the country, with state averages ranging from 21% to 47%. The three states with the highest proportion of nonprofits receiving government grants are Vermont (47%), Alaska (46%), and West Virginia (44%). While 30% of U.S. nonprofits receive government grants, 55% of organizations with budgets above $5 millio...
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