U.S. Nonprofits Dependent on Government Funding:
2024 Analysis
One in three U.S. nonprofits that receive government grants get more than half their revenue from government sources — 19,088 organizations based on 56,397 Form 990 filings for tax year 2024. With $108.9 billion in total government grants flowing to nonprofits, the stakes of federal funding changes are enormous. Here is what the data shows.
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Orgs Receiving Gov't Grants
56,397
Orgs with 50%+ Gov't Revenue
19,088
Total Government Grants
$108.9B
Median Dependency Ratio
26.8%
Tax year 2024 data covers 56,397 organizations that reported government grants on IRS Form 990. Government grants include federal, state, and local government funding reported on Part VIII Line 1e. We continuously update our datasets as new filings become available from the IRS.
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Government Funding Dependency Distribution
Most nonprofits that receive government grants are not majority-dependent, but over 19,000 organizations rely on government for more than half their revenue. The 5,724 most dependent nonprofits (90%+) average $6M in government funding each. Based on 56,397 organizations reporting government grants in tax year 2024.
| Dependency Level | # Orgs | Avg Gov't Funding | Avg Total Revenue |
|---|---|---|---|
| 90-100% | 5,724 | $6,020,061 | $6,234,939 |
| 75-89% | 4,655 | $4,135,755 | $4,898,275 |
| 50-74% | 8,709 | $2,456,319 | $3,983,615 |
| 25-49% | 10,007 | $1,434,323 | $3,903,185 |
| 10-24% | 10,169 | $919,268 | $5,725,473 |
| Under 10% | 17,133 | $590,489 | $53,657,654 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. All 56,397 organizations with government grants included.. 6 categories shown.
Get more data →Government Dependency by Sector
Crime & legal nonprofits are the most government-dependent sector — 55.5% of organizations get majority government funding. Mental health (50.9%) and housing & shelter (49.0%) follow closely. These sectors provide critical safety-net services often contracted by government agencies. Based on NTEE classification of 2024 Form 990 filings.
| Sector | Total Orgs | Orgs 50%+ Dependent | % Dependent | Median Gov't % |
|---|---|---|---|---|
| Crime & Legal | 1,148 | 637 | 55.5% | 57% |
| Mental Health | 1,431 | 728 | 50.9% | 51% |
| Housing & Shelter | 3,326 | 1,630 | 49.0% | 49% |
| Community Improvement | 3,183 | 1,409 | 44.3% | 43% |
| Public Safety | 2,779 | 1,225 | 44.1% | 44% |
| Human Services | 7,738 | 3,063 | 39.6% | 33% |
| Education | 4,138 | 1,564 | 37.8% | 27% |
| Civil Rights | 394 | 149 | 37.8% | 38% |
| Employment | 725 | 269 | 37.1% | 27% |
| Youth Development | 1,468 | 507 | 34.5% | 29% |
Source: IRS Form 990 electronically filed returns, Tax year 2024. 10 categories shown.
Get more data →Government Dependency by State (Top 15)
Delaware, Louisiana, and West Virginia have the highest share of government-dependent nonprofits. Southern and rural states tend to have greater government dependency rates, reflecting the role nonprofits play as government service delivery partners in those regions. Based on states with 50+ organizations in tax year 2024.
| State | Total Orgs | Orgs 50%+ Dependent | % Dependent | Median Gov't % |
|---|---|---|---|---|
| Delaware | 335 | 154 | 46.0% | 47% |
| Louisiana | 743 | 339 | 45.6% | 42% |
| West Virginia | 603 | 265 | 43.9% | 42% |
| Oklahoma | 475 | 202 | 42.5% | 37% |
| North Carolina | 1,877 | 797 | 42.5% | 37% |
| Mississippi | 418 | 176 | 42.1% | 42% |
| Georgia | 1,064 | 436 | 41.0% | 32% |
| Idaho | 352 | 143 | 40.6% | 30% |
| Nevada | 268 | 107 | 39.9% | 33% |
| South Carolina | 814 | 325 | 39.9% | 33% |
| Alaska | 303 | 121 | 39.9% | 33% |
| Ohio | 2,377 | 932 | 39.2% | 37% |
| Maryland | 1,227 | 472 | 38.5% | 31% |
| Oregon | 919 | 354 | 38.5% | 32% |
Source: IRS Form 990 electronically filed returns, Tax year 2024. 14 categories shown.
Get more data →Government Dependency by Budget Size
Smaller nonprofits are more likely to be majority-dependent on government funding. Over a third of sub-$1M organizations rely on government for 50%+ of revenue, compared to just 15.5% of $25M+ organizations. However, the largest organizations receive far more in absolute dollar terms. Based on 56,397 organizations in tax year 2024.
| Budget Size | Total Orgs | Orgs 50%+ Dependent | % Dependent | Median Gov't % | Avg Gov't Funding |
|---|---|---|---|---|---|
| Under $1M | 31,593 | 11,325 | 35.8% | 31% | $154,791 |
| $1M - $5M | 15,431 | 5,323 | 34.5% | 27% | $838,916 |
| $5M - $10M | 3,708 | 1,193 | 32.2% | 22% | $2,464,399 |
| $10M - $25M | 2,897 | 817 | 28.2% | 17% | $4,895,126 |
| $25M+ | 2,768 | 430 | 15.5% | 5% | $24,482,016 |
Source: IRS Form 990 electronically filed returns, Tax year 2024. All 56,397 organizations with government grants included.. 5 categories shown.
Get more data →Largest Government-Dependent Organizations
The largest nonprofits by government funding include global health organizations, federally funded research corporations, and housing authorities. These organizations collectively receive billions in government grants and would face severe disruption from funding cuts.
| Organization | State | Gov't Grants | Total Revenue | Gov't % |
|---|---|---|---|---|
| The Global Fund to Fight AIDS | — | $3.17B | $3.54B | 89.6% |
| The MITRE Corporation | VA | $2.46B | $2.48B | 99.3% |
| Opportunity Finance Network | PA | $2.29B | $2.33B | 98.2% |
| Intl. Committee of the Red Cross | — | $2.04B | $2.30B | 88.8% |
| Natl. Federation of Community | NY | $1.87B | $1.90B | 98.7% |
| GAVI Alliance | — | $1.62B | $2.55B | 63.7% |
| Conference on Jewish Material Claims | NY | $1.57B | $1.63B | 96.3% |
| Los Angeles LOMOD Corporation | CA | $1.02B | $1.06B | 96.5% |
| Research Foundation for SUNY | NY | $1.00B | $1.86B | 54.0% |
| Navigate Affordable Housing | AL | $885M | $919M | 96.3% |
Source: IRS Form 990 electronically filed returns, Tax year 2024. Organizations with 50%+ government revenue, ranked by government grant amount.. 10 categories shown.
Get more data →Why Government Funding Dependency Matters
Understanding which nonprofits are most reliant on government grants is critical for assessing financial vulnerability.
Government grants are a lifeline for tens of thousands of U.S. nonprofits — funding everything from homeless shelters and mental health clinics to legal aid services and community development programs. But that funding comes with risk. When federal, state, or local budgets shift, the nonprofits most dependent on government revenue face existential threats.
Federal Funding at Risk
With DOGE-driven spending reviews targeting $163 billion in discretionary spending, nonprofits heavily reliant on government grants face unprecedented uncertainty. Our data shows 19,088 organizations — managing billions in programs — derive more than half their revenue from government sources.
This analysis examines government funding dependency across 56,397 nonprofits that reported government grants on their IRS Form 990 for tax year 2024. We define 'dependent' as receiving 50% or more of total revenue from government grants — the threshold at which a funding cut would likely force significant service reductions.
The Most Vulnerable Sectors
Crime & legal, mental health, and housing nonprofits are the sectors most reliant on government revenue.
The sectors most dependent on government funding are those that deliver services on behalf of government agencies. Crime & legal organizations — including public defenders, court-appointed programs, and reentry services — top the list with 55.5% of organizations getting majority government revenue. Mental health (50.9%) and housing & shelter (49.0%) round out the top three.
55.5%
of Crime & Legal Nonprofits
are majority-dependent on government funding — the highest of any sector
These aren't peripheral organizations. Human services alone accounts for 7,738 nonprofits receiving government grants, with 3,063 (39.6%) majority-dependent. These organizations operate food banks, job training programs, domestic violence shelters, and other critical safety net services that communities depend on.
High-Risk Sectors
Crime & legal (55.5%), mental health (50.9%), and housing (49.0%) have the highest rates of majority government dependency. A 20% federal cut would impact thousands of organizations in these sectors.
Lower-Risk Sectors
Arts & culture, animal welfare, and recreation nonprofits tend to rely more on individual donors and earned revenue, making them less vulnerable to government funding shifts.
Geographic Patterns
Southern and rural states have the highest concentration of government-dependent nonprofits.
Government funding dependency varies significantly by geography. Delaware (46.0%), Louisiana (45.6%), and West Virginia (43.9%) lead in the share of nonprofits that are majority government-dependent. Several factors drive this pattern: states with smaller philanthropic markets, more government contracting of social services, and higher poverty rates tend to have more government-dependent nonprofits.
The Rural Factor
Many of the most government-dependent states are rural or have large rural populations where nonprofit infrastructure is thinner and government is often the primary funder of social services. Federal funding cuts would disproportionately impact these communities.
Size Matters: Small Nonprofits Are Most Exposed
Organizations under $1M in revenue are the most likely to be majority-dependent on government funding.
Smaller nonprofits are more likely to rely heavily on government funding. Among organizations with revenue under $1M, 35.8% are majority government-dependent — compared to just 15.5% of organizations over $25M. Larger organizations typically have diversified revenue streams including major gifts, earned revenue, and investment income that buffer them against government funding changes.
11,325
Small Nonprofits at Risk
Organizations under $1M in revenue that get 50%+ from government — the most vulnerable segment
However, the picture reverses in absolute dollar terms. The 430 large organizations ($25M+) that are majority government-dependent receive an average of $24.5M each in government grants. A single large organization losing funding could eliminate more total services than dozens of small ones.
What This Means for Stakeholders
Key Takeaways
Board Members
Assess your organization's government revenue concentration. If it exceeds 50%, develop a contingency plan and begin diversifying revenue streams.
Donors & Foundations
Consider directing philanthropic dollars toward government-dependent sectors and regions most at risk from funding cuts.
Policymakers
Recognize that 19,088 nonprofits — and the communities they serve — face disruption when government funding shifts. Phase-in periods and transition funding can mitigate harm.
Journalists & Researchers
Use this data to identify which organizations and communities in your area are most exposed to government funding changes.
How This Data Is Calculated
Transparency in methodology builds trust.
Sample Size
56,397 organizations
Data Source
IRS Form 990 electronically filed returns
Period
Tax year 2024
Analysis includes all organizations that reported government grants (Part VIII Line 1e) greater than zero on their Form 990 for tax year 2024. Government dependency ratio is calculated as government grants divided by total revenue. Only filings with processing_status = 'complete' and no data quality flags are included. NTEE sector classification uses the first letter of the NTEE code from the IRS Business Master File.
Government Grants
We use the government grants field from IRS Form 990 Part VIII Line 1e, which captures federal, state, and local government grants and contracts. This does not include program service revenue from government sources (e.g., Medicaid reimbursements).
Dependency Ratio
Government dependency is calculated as government grants divided by total revenue. We define 'majority-dependent' as 50% or more — the threshold at which losing government funding would likely require significant service reductions.
One Filing Per Organization
Each organization is counted once using their most recent tax year 2024 filing. Organizations that file multiple returns (e.g., amended returns) are deduplicated.
Data Quality
We exclude filings with data quality flags and those not fully processed. Organizations must report both government grants > 0 and total revenue > 0 to be included in the analysis.
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