Charities 1998[111]

Charities and Other Tax-Exempt Organizations, 1998 by Paul Arnsberger N 124 onprofit charitable organizations exempt from income tax under Internal Revenue Code section 501(c)(3) filed over 207,000 information returns for Reporting Year 1998, an increase of 4 percent from the previous year. These organizations reported $1.4 trillion in assets, a decrease of 6 percent from 1997, and $752.0 billion in revenue, slightly less than the previous year. Decreases in assets, revenue, and certain other items can be attributed to two very large, related organizations that filed returns for 1997, but not for 1998. The Teachers Insurance Annuity Association and the College Retirement Equities Fund (collectively known as TIAA-CREF) are pension organizations whose taxexemption was revoked under The Taxpayer Relief Act of 1997 [1,2]. If these two organizations are excluded from the 1997 data, the total assets and revenue of 501(c)(3) organizations would have increased by 10 percent and 6 percent, respectively, for 1998 [Figure A]. The statistics in this article exclude private foundations, most organizations with receipts totaling less than $25,000, as well as most churches and certain other types of religious organizations. Data for certain other organizations with taxexempt status under Code sections 501(c)(4) through (9) are also presented in this article. Such organizations are generally diverse both in function and financial character. For 1998, voluntary employee benefit associations, exempt under Code section 501(c)(9), reported assets of $109.7 billion and revenue of $86.7 Decreasesinassets, billion, larger amounts revenue,andcertain than those registered by organizations classiotheritemscanbe fied under each of the attributedtotwovery Code sections, large,relatedorganiza501(c)(4) through (8). The statistics for tionsthatfiledreturns charities and other taxfor1997,butnotfor exempt organizations reported in this article 19. 98 are based on data compiled from Form 990, Return of Organization Exempt from Income Tax, and Form 990-EZ, the short-form version of this information return. The latter form may be completed by smaller organizations, those with end-of-year assets of less than $250,000 and gross receipts of $25,000 to $100,000. Only condensed income statements and balance sheets are required of filers of Form 990-EZ. Forms 990-EZ accounted for 24 percent of the returns filed by organizations exempt under Code sections 501(c)(3) through (9) for Reporting Year 1998. CharitableOrganizationsTax-ExemptUnder InternalRevenueCodeSection501(c)(3) In order to qualify for tax-exempt status, the purpose of the organization must be to serve the public good, as opposed to a private interest. Organizations that are exempt under Code section 501(c)(3) are those whose purposes are religious, charitable, scientific, literary, or educational. They may also foster national or international amateur sports competition, prevent cruelty to children or animals, or test for public safety. The activities of nonprofit organizations are limited in that they must further one or more of the purposes for which they were granted taxexempt status. Examples of these “charitable” organizations include nonprofit hospitals, educational institutions, youth organizations, community fundraising campaigns, public charities, local housing organizations, historical societies, and environmental preservation groups. These organizations may not distribute net earnings to a private shareholder or individual. Participation by an exempt organization in activities that can influence legislation, or in a political campaign on behalf of, or in opposition to, any candidate, is also restricted. Generally, contributions to the organization are tax-deductible to the donor [3]. Of the 607,906 active nonprofit charitable organizations recognized by the Internal Revenue Service (IRS) under Code section 501(c)(3), some 207,272 filed returns for accounting periods that began in 1998 [4]. Those not required to file included churches and certain other religious organizations, as well as organizations with annual gross receipts totaling less than $25,000 [5]. Nonprofit private foundations tax-exempt under Code section 501(c)(3) are required to file separately, on Form 990-PF, Return of Private Foundation [6]. The number of 124 Paul Arnsberger is an economist with the Special Studies Special Projects Section. This article was prepared under the direction of Michael Alexander, Chief Charities and Other Tax-Exempt Organizations, 1998 Figure A Selected Items for Nonprofit Charitable Organizations, Reporting Years 1997 and 1998, Including Adjusted 1997 Data [Money amounts in millions of dollars] Percentage Item 1997 1998 change, 1997-1998 (1) (2) (3) -6.1 -26.5 -0.3 3.4 -22.9 -30.7 1.1 1997 adjusted ¹ 1998 Percentage change, 1997-1998 (4) 1,224,629 416,407 808,222 707,043 470,520 146,171 27,923 62,429 629,570 77,473 (5) 1,351,541 459,188 892,353 752,044 502,832 161,751 28,562 58,898 684,566 67,478 (6) 10.4 10.3 10.4 6.4 6.9 10.7 2.3 -5.7 8.7 -12.9 Total assets......................................................................................................................... 1,438,977 1,351,541 Total liabilities......................................................................................................................... 624,978 459,188 Total revenue......................................................................................................................... 754,616 752,044 Program service revenue......................................................................................................................... 486,407 502,832 Investment income ²......................................................................................................................... 37,040 28,562 Other......................................................................................................................... 84,998 58,898 Total expenses......................................................................................................................... 677,143 684,566 Total fund balance or net worth......................................................................................................................... 813,998 892,353 9.6 Contributions, gifts, and grants......................................................................................................................... 146,171 161,751 10.7 Excess of revenue over expenses (net)......................................................................................................................... 77,473 67,478 -12.9 ¹ The adjusted 1997 data exclude two very large organizations that filed returns for 1997, but not for 1998: The Teachers Insurance Annuity Association (TIAA) and the College Retirement Equities Fund (CREF) are pension organizations whose 1997 assets totalled $214 billion. Their exempt status was revoked under the Taxpayer Relief Act of 1997. ² Includes "interest on savings and temporary cash investments," "dividends and interest from securities," and "other investment income" from Form 990 and "investment income (loss)" from Form 990-EZ. NOTES: Data are from both Forms 990 and 990-EZ for nonprofit charitable organizations that are tax-exempt under Internal Revenue Code section 501(c)(3) and exclude private foundations, most organizations with receipts less than $25,000, as well as most churches, and certain other types of religious organizations. returns filed by nonprofit charitable organizations for 1998 was 4 percent more than for 1997 [7]. Form 990-EZ returns represented 22 percent of total returns filed. F n n i lC a a t r s i so N n r f t iaca hrceitc f opoi CharitableOrganizations Although 64 percent of the returns filed by section 501(c)(3) organizations were filed by organizations with assets of less than $500,000, these organizations held only 1 percent of the total assets and reported only 4 percent of total revenue (Figure B). In comparison, larger organizations, those with assets of $10 million or more, represented less than 6 percent of the returns filed, but accounted for 88 percent of the total asset holdings and 80 percent of the total revenue reported. The assets of all nonprofit charitable organizations filing Forms 990 and 990-EZ for 1998 totalled $1.4 trillion. “Cash, savings, and investments” was the primary component of assets for these organizations, accounting for 55 percent of the total. “Land, buildings, and equipment” owned by nonprofits (but not for investment purposes) represented 19 percent of total assets [8]. The total fund balance (also called “net assets”) of Form 990 and 990-EZ filers increased 10 percent to $892.4 billion for 1998. The nonprofit charitable organizations in this study reported total revenue of $752.0 billion for 1998. “Program service revenue” was the major source of revenue for these organizations. This revenue is comprised of the fees collected by organizations in support of their tax-exempt purposes and includes such income as tuition and fees at educational institutions, hospital patient charges (including Medicare and Medicaid payments), admission fees collected by museums or community performing arts groups, YMCA/YWCA activity fees, and payments received for insurance and retirement coverage by selected pension and annuity funds. Overall, program service revenue totaled $502.8 billion, a 3-percent increase from 1997. (With TIAA-CREF excluded from the 1997 data, program service revenue increased 7 percent.) Figure C illustrates the types of revenue reported by organizations of different sizes. The largest organizations, those with assets of $10 million or more, received 72 percent of their total revenue from program service revenue, a larger percentage than that for organizations with lesser amounts of total assets. 125 Charities and Other Tax-Exempt Organizations, 1998 Figure B Nonprofit Charitable Organizations, by Size of Total Assets and Total Revenue, Reporting Year 1998 [Money amounts are in millions of dollars] Returns Size of organization Number (1) Size of total assets Percentage of total (2) Total assets Amount (3) Percentage of total (4) 100.0 0.2 1.0 Total fund balance Amount (5) 892,353 1,513 9,559 10,945 84,203 113,449 672,685 892,353 9,072 25,778 20,964 135,144 167,263 534,133 Percentage of total (6) 100.0 0.2 1.1 1.2 9.4 12.7 75.4 100.0 1.0 2.9 2.3 15.1 18.7 59.9 Total revenue Amount (7) 752,044 9,621 19,493 14,891 107,601 109,463 490,974 752,044 3,847 16,021 15,643 109,862 133,576 473,095 Percentage of total (8) 100.0 1.3 2.6 2.0 14.3 14.6 65.3 100.0 0.5 2.1 2.1 14.6 17.8 62.9 Total............................................................................................................. 1,351,541 207,273 100.0 Under $100,000¹............................................................................................................. 80,634 38.9 2,713 $100,000 under $500,000............................................................................................................. 52,450 25.3 12,982 $500,000 under $1,000,000............................................................................................................. 1.1 20,721 10.0 14,801 $1,000,000 under $10,000,000............................................................................................................. 41,173 19.9 130,764 9.7 $10,000,000 under $50,000,000............................................................................................................. 8,291 4.0 178,589 13.2 $50,000,000 or more............................................................................................................. 4,004 1.9 1,011,692 Size of total revenue Total............................................................................................................. 1,351,541 207,273 100.0 100.0 Under $100,000²............................................................................................................. 76,297 36.8 13,414 1.0 $100,000 under $500,000............................................................................................................. 2.6 65,182 31.4 35,414 $500,000 under $1,000,000............................................................................................................. 2.3 21,863 10.5 31,523 $1,000,000 under $10,000,000............................................................................................................. 35,060 16.9 198,708 14.7 $10,000,000 under $50,000,000............................................................................................................. 6,410 3.1 257,822 19.1 $50,000,000 or more............................................................................................................. 2,461 1.2 814,660 60.3 ¹ Includes returns with zero assets or assets not reported. ² Includes returns with no revenue or revenue not reported. 74.9 NOTES: Data are from Forms 990 and 990-EZ for nonprofit charitable organizations that are tax-exempt under Internal Revenue Code section 501(c)(3) and exclude private foundations, most organizations with receipts less than $25,000, as well as most churches, and certain other types of religious organizations. 126 Total expenses, as reported on Forms 990 and 990-EZ, rose slightly to $684.6 billion for 1998. “Salaries, other compensation, and employee benefits,” the largest expense category for nonprofit charitable organizations, increased by 10 percent, to $305.7 billion. “Grants and similar amounts paid” decreased by nearly half, from $85.4 billion for 1997 to $44.7 billion for 1998. Nearly all of this decrease can be attributed to TIAA-CREF, which reported a total $46.7 billion in grants for 1997 but did not file for 1998. On Form 990 (but not on Form 990-EZ), expenses for nonprofit charitable organizations are distributed among four areas: program services, fundraising, management and general, and payments to affiliates. Briefly, program service expenses are those associated with activities that further an organization’s exempt purpose; fundraising expenses are those incurred in soliciting contributions, gifts, and grants; and management and general expenses include those administrative and overhead costs which are not specifically related to program services or fundraising activities. Within these three broad areas are specific categories such as salaries and wages, grants and allocations, professional fees, and occupancy. The fourth area includes payments to organizations closely related to the reporting organizations, such as support and dues payments by local chapters to State and national agencies. Program service expenses accounted for the vast majority (85 percent) of total expenses reported by filers of Form 990; management and general expenses totaled 12 percent; and fundraising expenses and payments to affiliates, combined, accounted for less than 2 percent. NonprofitCharitableOrganizationsClassified by NTEE Codes The National Taxonomy of Exempt Entities (NTEE) is a classification system developed by the National Center for Charitable Statistics, which classifies organizations by institutional purpose and major programs and activities [9]. It recognizes 26 major groups, which are aggregated into 10 program categories, as shown in Figure D. Within each program category is a wide diversity in types of organizations conducting the different functions. The organizations were coded for statistics on the basis of information provided on their Forms 990 and 990-EZ. 126 Charities and Other Tax-Exempt Organizations, 1998 Figure C Sources of Nonprofit Charitable Organization Revenue, by Asset Size, Reporting Year 1998 Percentage of total 100% 9 15 1 80% 34 35 60% 38 49 65 74 40% 56 49 20% 2 9 2 6 2 7 3 8 4 51 42 25 13 0% Under $100,000¹ $100,000 under $500,000 $500,000 under $1,000,000 $1,000,000 under $10,000,000 $10,000,000 under $50,000,000 $50,000,000 or more Asset size Contributions, gifts, and grants Program service revenue Investment income² Other ¹ Includes returns with zero assets or assets not reported. ² Includes "interest on savings and temporary cash investments," "dividends and interest from securities," and "other investment income" from Form 990 and "investment income" from Form 990-EZ. NOTES: Data are from Forms 990 and 990-EZ for nonprofit charitable organizations that are tax-exempt under Internal Revenue Code section 501(c)(3) and exclude private foundations, most organizations with receipts less than $25,000, as well as most churches, and certain other types of religious organizations. Based on the NTEE classification, health was the dominant program category in terms of revenue, accounting for 56 percent of the total. Organizations in the health category also held the largest portion of total assets (41 percent). This category includes organizations that promote the wellness of individuals, the general treatment and prevention of disease or illness (including also mental health and illness), and the medical rehabilitation of people with physical disabilities. Examples are hospitals; nursing or convalescent facilities; health support services, such as blood banks, organ banks, and emergency medical transport services; health care financing activities; substance abuse treatment services; organizations that study ethics or promote the practice of ethical behavior in medical care and research; health associations active in the prevention or treatment of diseases; and medical research. Eighty-six percent of the total revenue for nonprofit charitable organizations in the health category was derived from program services. The education program category includes higher 127 Charities and Other Tax-Exempt Organizations, 1998 Figure D Selected Items for Nonprofit Charitable Organizations Classified by NTEE Category, Reporting Year 1998 [Money amounts are in millions of dollars] NTEE major category¹ Number of returns Total assets Total fund balance or net worth Total Revenue Contributions, gifts, and grants (4) 752,044 149,995 7,467 418,175 101,453 (5) 161,751 10,178 43,425 4,315 28,014 42,992 6,168 324 21,903 4,415 16 Program service revenue Total expenses Excess of revenue over expenses (net) (1) (2) (3) (6) 502,832 5,125 75,835 1,470 361,008 48,100 563 1,012 8,805 866 49 (7) 684,566 15,800 121,984 5,700 402,151 95,079 6,548 1,603 29,898 5,750 53 (8) 67,478 4,325 28,011 1,768 16,024 6,374 595 819 8,641 903 17 Total................................................................................................................. 207,273 1,351,541 892,353 Education................................................................................................................. 37,124 441,543 350,313 Environment, animals................................................................................................................. 7,671 18,307 15,162 Health................................................................................................................. 30,373 554,813 302,669 Human services................................................................................................................. 78,311 146,249 77,242 Arts, culture, and humanities................................................................................................................. 23,336 53,029 45,733 20,125 International, foreign affairs................................................................................................................. 1,764 7,854 5,641 7,144 Mutual, membership benefit................................................................................................................. 526 13,044 10,966 2,422 Public, societal benefit................................................................................................................. 38,539 17,196 103,592 73,674 Religion related................................................................................................................. 10,660 12,983 10,842 Unknown, unclassified................................................................................................................. 312 128 112 6,653 70 ¹ The National Taxonomy of Exempt Entities (NTEE) is a classification system that uses 26 major field areas that are aggregated into 10 categories, shown above. It was developed by the National Center for Charitable Statistics. The codes describe the purposes and activities of the organizations. NOTES: Data are from Forms 990 and 990-EZ for nonprofit charitable organizations that are tax-exempt under Internal Revenue Code section 501(c)(3) and exclude private foundations, most organizations with receipts less than $25,000, as well as most churches, and certain other types of religious organizations. Detail may not add to totals because of rounding. 128 128 education, elementary and secondary schools, correspondence schools, libraries, educational testing services, organizations providing opportunities for continuing education outside the framework of formal education, and student services and organizations. Education ranked a distant second in terms of revenue, which totaled $150.0 billion. This category also accounted for $441.5 billion in assets—nearly onethird of the total for nonprofit charitable organizations. Thirty-eight percent of the organizations that filed Forms 990 and 990-EZ for 1998 were classified as human service organizations. Program service revenue ($48.1 billion) and contributions, gifts, and grants received ($43.0 billion) together represented nearly all of the total revenue reported by these organizations. This category was comprised of organizations in several classifications performing a broad range of services focused on specific needs within the community: housing and shelter programs, including housing, construction, management, and services to assist in locating, acquiring, or sustaining housing; job training and placement services; public safety, disaster preparedness, and relief services, including activities related to the effects of disasters and the provid- ing of relief to accident victims; recreation and sports programs provided by organizations for camps, parks, and playgrounds, and amateur sports activities; crime prevention and legal services; and multipurpose organizations which provide a broad range of social or human services to individuals and families. (Included in this last category are such organizations as the American Red Cross, Salvation Army, Urban League, and YMCA’s/YWCA’s.) The mutual, membership benefit category, which in the past was dominated by TIAA-CREF—the two organizations that accounted for 96 percent of the category’s total assets in 1997—reported large decreases in assets, liabilities, revenue, and expenses for 1998. OrganizationsTax-ExemptUnderInternal RevenueCodeSections501(c)(4)-(9) The statistics presented in this section are based on Forms 990 and 990-EZ filed by organizations taxexempt under Code sections 501(c)(4) through (9) [10]. Figure E provides general descriptions of the organizations included under these sections. Unlike the nonprofit charitable organizations that are tax- Charities and Other Tax-Exempt Organizations, 1998 Figure E Types of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(3)-(9) Internal Revenue Code section 501(c)(3) Description of organization General nature of activities testing for public safety organizations. Also, organizations preventing cruelty to children or animals, or fostering national or international amateur sports competition 501(c)(4) Religious, educational, charitable, scientific, or literary organizations; Activities of a nature implied by the description of the class of organization Civic leagues, social welfare organizations, and local associations of employees Labor, agriculture, and horticultural organizations Promotion of community welfare and activities, net earnings from which are devoted to charitable, educational, or recreational purposes Educational or instructive groups whose purpose is to improve conditions of work, products, and efficiency Improving conditions in one or more lines of business Pleasure, recreational, and social activities Lodges providing for payment of life, sickness, accident, or other benefits to members Providing for payment of life, sickness, accident, or other benefits to members 501(c)(5) 501(c)(6) 501(c)(7) 501(c)(8) Business leagues, chambers of commerce, and real estate boards Social and recreational clubs Fraternal beneficiary societies and associations 501(c)(9) Voluntary employee beneficiary associations exempt under Code section 501(c)(3), most contributions to these organizations are not tax-deductible. Financial data for organizations covered by these six Code sections are presented in Tables 2, 3, and 4. HighlightsofFinancialData Voluntary employee beneficiary associations, Code section 501(c)(9), reported $109.7 billion in assets for 1998, considerably more than organizations exempt under sections 501(c)(4) through (8) (Figure F). This amount represented an increase of 16 percent from Reporting Year 1997. Fraternal beneficiary societies, section 501(c)(8), and civic leagues and social welfare associations, section 501(c)(4), reported $65.2 billion and $54.7 billion in assets, respectively, for 1998. With the exception of social and recre- Figure F Selected Items for Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(4)-(9), Reporting Year 1998 [Money amounts are in millions of dollars] Internal Revenue Code section Number of returns (1) Total assets (2) Total liabilities (3) 36,322 3,370 19,254 4,504 55,502 19,289 Total fund balance or net worth (4) 18,325 16,431 19,575 10,644 9,691 90,438 Total revenue (5) 39,346 15,222 24,012 8,348 11,693 86,746 Total expenses (6) 37,827 14,115 23,207 8,015 10,994 78,113 501(c)(4)............................................................................................. 21,801 54,647 501(c)(5)............................................................................................. 20,818 19,801 501(c)(6)............................................................................................. 27,279 38,829 501(c)(7)............................................................................................. 16,541 15,149 501(c)(8)............................................................................................. 7,698 65,193 501(c)(9)............................................................................................. 9,200 109,726 NOTE: Data are from Forms 990 and 990-EZ and exclude most organizations with receipts less than $25,000. 129 Charities and Other Tax-Exempt Organizations, 1998 ational clubs, section 501(c)(7), the majority of the asset holdings by organizations under these six Code sections was reported by the largest organizations (those with assets of $10 million or more); for social and recreational clubs, however, the largest organizations reported just 29 percent of total assets. Social and recreational clubs differed from other types of organizations in the components of their assets as well. While organizations exempt under Code sections (c)(4), (5), (6), (8), and (9) held the majority of their assets in the form of cash, savings, and investments, social and recreational clubs reported 64 percent of their assets as land and buildings. In terms of revenue, voluntary employee beneficiary associations, section 501(c)(9), were also the largest of the six categories, with $86.7 billion, a slight increase from 1997. Civic leagues and social welfare organizations, section 501(c)(4), ranked a distant second in terms of revenue, with $39.3 billion, an increase of 10 percent from the previous year. Program service revenue was the primary source of income for three types of organizations: civic leagues and social welfare organizations, section 501(c)(4); fraternal beneficiary societies, section 501(c)(8); and voluntary employee beneficiary associations, section 501(c)(9) (Figure G). These three types of organiza- Figure G Sources of Revenue of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(4)-(9), Reporting Year, 1998 Percentage of total 100% 9 5 13 15 23 10 3 10 3 130 80% 39 60% 65 80 40% 58 86 86 39 20% 20 18 7 0% 501(c)(4) 501(c)(5) 3 6 501(c)(6) Code subsection Contributions, gifts, and grants Program service revenue Membership dues and assessments Other 501(c)(7) 1 501(c)(8) 1 501(c)(9) 130 NOTES: Data are from Forms 990 and 990-EZ and exclude most organizations with receipts less than $25,000. Detail may not add to 100 percent because of rounding. Charities and Other Tax-Exempt Organizations, 1998 tions reported at least three-fourths of their revenue from program services. Membership dues and assessments were the principal source of revenue for labor, agricultural, and horticultural organizations, section 501(c)(5); and social and recreational clubs, section 501(c)(7). Unlike nonprofit charities exempt under 501(c)(3), contributions, gifts, and grants were a minor source of income for those organizations taxexempt under sections 501(c)(4) through (9). OrganizationsFilingForm990-EZ Form 990-EZ may be filed by organizations that are tax-exempt under Internal Revenue Code section 501(c), with annual gross receipts of less than $100,000 and assets under $250,000. The form was introduced for Reporting Year 1989, and its use has grown steadily each year. Form 990-EZ requires less detailed reporting than the long form, especially on the balance sheet portion of the return. Table 4 presents detailed data on Form 990-EZ filers, by Internal Revenue Code section. With the exception of voluntary employee beneficiary associations, Forms 990-EZ represented between 22 percent and 36 percent of all information returns filed for 1998. (The short form accounted for only 4 percent of the total number of returns filed by organizations exempt under 501(c)(9).) Nonprofit charitable organizations reporting on Form 990-EZ accounted for very small proportions of total assets. Only labor, agricultural, and horticultural organizations, section 501(c)(5), and social and recreational clubs, section 501(c)(7), reported more than 2 percent of their total assets on Form 990-EZ. The assets of nonprofit charitable organizations that filed Form 990-EZ represented just one-tenth of one percent of the total assets of reporting organizations exempt under section 501(c)(3). (Data for organizations that were eligible to file Form 990-EZ but filed the longer Form 990 instead are included with the data for filers of Form 990.) significant amount of nonprofit sector financial activity in 1997 did not file Form 990 returns for 1998. Program service revenue, the fees received for the programs conducted in support of the purposes for which the tax exemptions under section 501(c)(3) were granted, was $502.8 billion for Reporting Year 1998. It represented two-thirds of the total revenue reported by charitable organizations. Contributions, gifts, and grants increased by 11 percent to $161.8 billion. This source of revenue accounted for over one-half of the total revenue of organizations with asset holdings of less than $1 million, but for a much smaller share of the total revenue of the larger organizations. Expenses rose by 1 percent to $684.6 billion. Using the National Taxonomy of Exempt Entities codes (which classify organizations by institutional purpose and major programs and activities), health care was the predominant major category, accounting for 41 percent of the assets and 56 percent of total revenue reported by nonprofit charitable organizations. Organizations exempt under Internal Revenue Code sections 501(c)(4) though (9) are diverse in both their purposes and financial characteristics. Voluntary employee beneficiary associations, section 501(c)(9), led these organizations in terms of both assets and revenue, with totals of $109.7 billion and $86.7 billion, respectively. Program service revenue was the principal source of revenue and consisted of payments for health and welfare benefits. Membership dues and assessments were the principal source of revenue for labor, agricultural, and horticultural organizations, section 501(c)(5); and social and recreational clubs, section 501(c)(7). DataSourcesandLimitations The statistics in this article are based on a sample of the 1998 Forms 990, Return of Organization Exempt From Income Tax, and Forms 990-EZ, Short Form Return of Organization Exempt From Income Tax. Organizations used the 1998 forms when their accounting periods ended any time between December 31, 1998, and November 30, 1999. The sample did not include private foundations, which were required to file separate return forms. Most churches and certain other types of religious organizations were also excluded from the sample because they were not required to file a Form 990 or a Form 990-EZ. The sample included only those returns with receipts of more than $25,000, the filing threshold. Summary For 1998, nonprofit charitable organizations (excluding private foundations) tax-exempt under section 501(c)(3) reported $1.4 trillion in total assets and $752.0 billion in revenue. The number of returns filed by these organizations was 207,272, including both the longer Form 990 and the shorter Form 990-EZ. Two large organizations that were responsible for a 131 Charities and Other Tax-Exempt Organizations, 1998 132 The sample design was split into two parts: the first part was comprised of returns of organizations exempt under section 501(c)(3), and the second part contained organizations exempt under sections 501(c)(4) through (9). Returns of organizations taxexempt under other Code sections were excluded. The data presented were obtained from returns as originally filed with the Internal Revenue Service. They were subjected to comprehensive testing and correction procedures in order to improve statistical reliability and validity. However, in most cases, changes made to the original return as a result of either administrative processing or taxpayer amendment were not incorporated into the data base. Each part of the sample was classified into strata based on size of total assets, with each stratum sampled at a different rate. For section 501(c)(3) organizations, a sample of 14,653 returns was selected from a population of 211,305. Sampling rates ranged from 1.06 percent for organizations reporting total assets less than $500,000 to 100 percent for organizations with total assets of $30,000,000 or more. For organizations filing under sections 501(c)(4) through (9), a sample of 9,795 returns was selected from a population of 105,635. Sampling rates ranged from 2.10 percent for organizations reporting total assets less than $125,000 to 100 percent for organizations with assets of $10,000,000 or more. The filing populations for these organizations included some returns of terminated organizations, returns of inactive organizations, duplicate returns, and returns of organizations filed with tax periods prior to 1998. However, these returns were not included in the final sample, nor in the estimated population counts. Because the data are based on samples, they are subject to sampling error. In order to use these statistics properly, the magnitude of the sampling error, measured by the coefficient of variation (CV), should be taken into account. Figure H shows CV’s for selected financial data. A discussion of methods for evaluating the nonsampling error can be found in the general Appendix of this issue. Figure H Coefficients of Variation for Selected Items, by Selected Internal Revenue Code Sections, Reporting Year 1998 Internal Revenue Code section (1) Total revenue Total expenses Total assets Total liabilities Coefficient of variation (percentages) (2) (3) (4) 0.29 0.41 2.11 0.60 2.47 0.09 1.02 501(c)(3)......................................................................................... 0.42 0.47 0.07 501(c)(4)......................................................................................... 0.86 0.89 0.41 501(c)(5)......................................................................................... 2.08 2.17 1.10 501(c)(6)......................................................................................... 1.64 1.67 0.66 501(c)(7)......................................................................................... 2.33 2.42 1.69 501(c)(8)......................................................................................... 0.70 0.72 0.21 501(c)(9)......................................................................................... 3.94 4.60 0.24 with receipts less than $25,000. NOTE: Data are from Forms 990 and 990-EZ and exclude most organizations information are public documents, the names of individual organizations can be used in this article. [3] For more information on the requirements for tax-exemption under 501(c)(3) and other Code sections, see Internal Revenue Service Publication 557: Tax-Exempt Status for Your Organization. [4] Data presented in this article are from 1998 Forms 990 and 990-EZ. The total number of nonprofit charitable organizations, including those not required to file Form 990 or Form 990EZ, was obtained from the Internal Revenue Service Exempt Organizations Business Master File (December 1998) and does not include private foundations filing Form 990-PF, Return of Private Foundation. [5] The $25,000 filing threshold is an average of an organization’s gross receipts over the previous 3 years. [6] For information on private foundations, see Whitten, Melissa, “Private Foundations and Charitable Trusts, 1997,” Statistics of Income Bulletin, Fall 2000, Volume 20, Number 2. [7] For data on previous years, see Arnsberger Paul, “Nonprofit Charitable Organizations, 1997,” Statistics of Income Bulletin, Fall 2000, Volume 20, Number 2; and Arnsberger Paul, “Nonprofit Charitable Organizations, 1996,” NotesandReferences [1] Public Law 105-34, Section 1042. [2] Because Forms 990 and 990-EZ on which taxexempt organizations report their financial 132 Charities and Other Tax-Exempt Organizations, 1998 Statistics of Income Bulletin, Winter 19992000, Volume 19, Number 3. [8] The Form 990 includes a detailed balance sheet on which organizations classify their assets among a number of different components. The balance sheet on the shorter Form 990-EZ provides for only three types of assets: cash, savings, and investments; land and buildings; and other assets. For the sake of consistency, the assets of organizations filing the long form are collapsed into these three categories. Detailed balance sheet data for Form 990 filers are provided in Tables 1 and 3. Form 990-EZ data can be found in Table 4. [9] For information on the National Taxonomy of Exempt Entities classification system, see Hodgkinson, Virginia A.; Weitzman, Murray S.; et al., Nonprofit Almanac, 1996-1997: Dimensions of the Independent Sector, Jossey-Bass, Inc., 1996; Stevenson, David R.; Pollak, Thomas H.; Lampkin, Linda M.; et al., State Nonprofit Almanac 1997: Profiles of Charitable Organizations, The Urban Institute, 1997; and The National Taxonomy of Exempt Entities Manual, The Urban Institute, 1997. [10] Tax-exempt organizations are described under Sections 501(c)(1) through (21) of the Internal Revenue Code. The statistics in this article are based only on those tax-exempt under Sections 501(c)(3)-(9) because these organizations tend to constitute the bulk of the financial activity for the nonprofit sector. SOURCE: IRS, Statistics of Income Bulletin, Fall 2001, Publication 1136 (Rev. 11-2001) 133 Charities and Other Tax-Exempt Organizations, 1998 Table 1.--Form 990 Returns of Nonprofit Charitable Section 501(c)(3) Organizations: Selected Balance Sheet and Income Statement Items, by Asset Size [All figures are estimates based on samples--money amounts are in thousands of dollars] Asset size Item Total Under $100,000¹ (1) (2) $100,000 under $500,000 (3) 47,345 12,174,969 2,118,720 $500,000 under $1,000,000 (4) 20,721 14,801,074 1,344,577 675,782 207,732 307,982 *9,600 365,222 121,823 2,082,018 889,655 604,387 4,792,729 460,300 3,856,220 860,397 81,035 $1,000,000 under $10,000,000 (5) 41,173 130,763,755 6,669,959 16,295,007 8,181,560 3,606,216 2,667,564 20,149 2,210,706 1,154,701 1,072,984 24,818,248 5,479,305 7,264,522 46,153,060 5,169,772 46,561,207 11,142,493 1,003,678 $10,000,000 under $50,000,000 (6) 8,291 178,589,339 4,876,129 14,536,552 11,193,755 4,625,836 1,609,279 29,320 3,993,435 1,410,952 1,673,417 51,899,682 4,442,135 12,459,076 56,050,392 9,789,379 65,140,109 14,935,370 1,200,472 5,290,988 44,923 11,820,267 22,347,094 9,500,996 113,449,230 $50,000,000 or more (7) 4,004 1,011,692,406 10,795,843 48,428,943 67,424,120 14,692,974 3,718,721 75,609 29,739,351 5,066,604 8,678,046 397,969,726 11,442,852 104,444,765 240,725,273 68,489,579 339,007,074 79,302,114 3,732,697 11,799,480 312,622 117,777,951 68,346,755 57,735,455 672,685,333 Number of returns................................................................................................................... 162,559 41,026 Total assets............................................................................................................................. 1,349,649,141 1,627,597 Cash................................................................................................................... 26,468,726 663,496 Savings and temporary cash investments................................................................................................................... 85,802,759 425,037 3,282,615 2,834,605 Accounts receivable (net)................................................................................................................... 88,362,490 96,411 790,862 Pledges receivable (net)................................................................................................................... 23,267,931 17,103 118,071 Grants receivable................................................................................................................... 8,877,250 72,421 Receivables due from officers, directors, trustees, and key employees................................................................................... 145,062 *4,349 *6,034 Other notes and loans receivable................................................................................................................... 36,387,524 5,778 73,031 Inventories for sale or use................................................................................................................... 8,036,230 27,585 254,565 Investments in securities................................................................................................................... 477,665,786 44,376 851,736 Investments in land, buildings, and equipment minus accumulated depreciation................................................................................... 39,411 22,788,752 Other investments................................................................................................................... 125,136,760 *4,840 Land, buildings, and equipment minus accumulated depreciation................................................................................... 350,830,765 184,957 2,924,355 310,268 1,188,668 77,004 Other assets................................................................................................................... 84,242,899 23,599 Accounts payable................................................................................................................... 107,773,244 344,202 Grants payable................................................................................................................... 6,106,834 *11,948 Loans from officers, directors, trustees, and key employees................................................................................... 88,290 5 55,284 96,041 *15,578 *24,421 269,651 495,394 359,170 501,284 Prepaid expenses and deferred charges................................................................................................................... 11,636,203 18,230 88,864 104,661 Total liabilities............................................................................................................................. 3,367,970 459,050,478 1,117,897 134 Support and revenue designated for future periods................................................................................................................... 3,207,460 21,021,743 33,410 368,918 321,488 63,843 2,437,610 24,021,085 4,685,038 84,202,548 Tax-exempt bond liabilities................................................................................................................... 132,106,512 *23,065 *23,198 Other liabilities................................................................................................................... 72,738,278 83,633 463,506 Mortgages and other notes payable................................................................................................................... 2,283,651 118,715,576 566,356 1,150,636 Total fund balance or net worth............................................................................................................................. 890,598,662 509,699 8,806,998 10,944,854 Footnotes at end of table. 134 Charities and Other Tax-Exempt Organizations, 1998 Table 1.--Form 990 Returns of Nonprofit Charitable Section 501(c)(3) Organizations: Selected Balance Sheet and Income Statement Items, by Asset Size--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Asset size Item Total Under $100,000¹ (1) Total revenue............................................................................................. 749,890,036 (2) 7,741,810 $100,000 under $500,000 (3) 19,218,784 $500,000 under $1,000,000 (4) 14,891,394 $1,000,000 under $10,000,000 (5) 107,600,699 45,461,311 18,247,299 2,594,349 24,619,662 52,818,119 1,365,728 $10,000,000 under $50,000,000 (6) 109,463,343 27,038,239 15,878,979 1,818,937 9,340,323 71,487,532 1,318,960 1,122,127 2,176,163 278,276 610,506 332,230 400,069 2,822,040 2,433,800 21,238,320 18,804,520 388,240 1,233,766 845,526 229,325 497,559 268,234 787,944 1,865,875 1,077,931 1,802,669 100,120,860 84,722,828 13,674,033 1,393,442 330,558 9,342,483 $50,000,000 or more (7) 490,974,005 66,014,462 38,220,069 6,649,969 21,144,424 362,960,870 2,839,209 4,763,904 14,486,587 1,037,318 2,192,838 1,155,521 2,281,372 25,016,344 21,800,626 376,860,934 355,060,308 3,215,717 8,154,556 4,938,838 2,933 439,017 436,083 1,868,358 3,623,541 1,755,183 9,702,649 442,247,573 380,094,467 54,974,922 3,484,417 3,693,766 48,726,432 Total contributions, gifts, and grants received ................................................................................................................... 160,697,814 3,815,386 10,724,177 7,644,240 Contributions received from direct public support.............................................................................................. 83,359,695 2,396,955 4,656,398 3,959,995 Contributions received from indirect public support.............................................................................................. 12,711,938 289,614 541,754 817,317 Government grants.............................................................................................. 64,626,180 1,128,817 5,526,026 2,866,928 5,633,413 327,431 Program service revenue................................................................................................................... 502,340,167 2,932,009 6,508,224 Membership dues and assessments................................................................................................................... 6,724,723 240,003 633,393 Interest on savings and temporary cash investments...................................................................................................................1,054,815 7,292,057 22,688 153,890 174,634 Dividends and interest from securities................................................................................................................... 120,677 18,136,080 5,002 73,035 Net rental income (loss)................................................................................................................... 87,518 1,777,791 8,881 Gross rents.............................................................................................. 3,788,379 Rental expenses.............................................................................................. 2,010,588 8,881 -143,153 55,635 46,079 86,203 40,125 19,052 79,298 71,826 519,532 447,706 7,471 36,160 28,689 1,274,616 319,720 746,798 427,078 332,906 1,214,057 1,079,128 9,212,567 8,133,439 134,929 714,059 579,130 911,042 2,030,206 1,119,163 1,141,551 2,683,368 1,541,816 1,706,834 100,299,623 85,195,975 12,821,667 1,604,900 677,080 7,301,076 Other investment income (loss)................................................................................................................... 3,088,501 3,632 51,470 Total gain (loss) from sales of assets................................................................................................................... 29,200,138 46,798 21,602 Gain (loss), sales of securities.............................................................................................. 25,426,759 *202 Gross amount from sales................................................................................. 408,077,187 *19,218 41,177 226,616 Cost or other basis and sales expense................................................................................. 185,439 382,650,427 *19,016 Gain (loss), sales of other assets.............................................................................................. 3,773,379 46,597 Gross amount from sales................................................................................. 10,337,897 127,472 Cost or other basis and sales expense................................................................................. 6,564,518 *80,876 19,575 71,884 91,459 Net income (loss), special events and activities................................................................................................................... 2,038,807 358,421 297,906 239,180 Gross revenue.............................................................................................. 5,683,756 Direct expenses.............................................................................................. 3,644,948 942,367 583,946 879,203 581,297 895,405 656,225 Gross profit (loss), sales of inventories................................................................................................................... 191,002 4,521,756 193,007 339,893 Gross sales minus returns and allowances.............................................................................................. 9,813,546 506,150 714,316 Cost of goods sold..............................................................................................313,142 5,291,788 Other revenue (loss)................................................................................................................... 14,072,195 115,981 374,422 327,674 420,297 229,294 416,389 13,856,082 11,352,010 1,950,435 540,814 12,823 Total expenses ²............................................................................................................................. 682,558,036 7,737,831 18,296,067 Program services................................................................................................................... 15,273,539 583,029,740 6,390,920 Management and general................................................................................................................... 87,247,542 1,125,016 2,701,469 Fundraising................................................................................................................... 7,499,125 160,723 Payments to affiliates................................................................................................................... 4,785,295 61,170 314,829 9,899 Excess of revenue over expenses (net)............................................................................................................................. 67,332,000 3,979 922,717 1,035,312 * Estimate should be used with caution because of the small number of sample returns on which it is based. ¹ Includes returns with zero assets or assets not reported. ² The differences between "total expenses" shown in this table and "total functional expenditures" shown in Table 2 are due to payments to affiliates, which are not considered functional expenditures. NOTES: Data exclude private foundations, most organizations with receipts less than $25,000, most churches, and certain other types of religious organizations. Detail may not add to totals because of rounding. 135 Charities and Other Tax-Exempt Organizations, 1998 Table 2.--Form 990 Returns of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(3)-(9): Total Functional Expenditures, by Code Section [All figures are estimates based on samples--money amounts are in thousands of dollars] Organizations tax-exempt under Internal Revenue Code section-Item 501(c)(3)¹ (1) 501(c)(4) (2) 501(c)(5) (3) 501(c)(6) (4) 2,002 501(c)(7) (5) 10,872 7,769,441 16,385 6,714 15,100 67,782 2,730,351 34,265 201,683 336,080 4,054 39,014 17,831 308,128 50,459 34,365 824,046 257,197 74,372 24,639 63,993 171,726 662,920 182,829 501(c)(8) (6) 5,940 10,892,930 232,398 20,151 7,683,879 85,739 630,773 52,804 322,546 83,003 4,236 19,763 23,978 58,489 23,855 33,854 166,575 40,581 45,172 34,403 40,661 24,765 89,195 117,608 501(c)(9) (7) 8,793 78,070,073 748,793 819,719 65,336,432 211,015 547,923 62,630 2,028,063 52,471 *4,258 82,568 96,682 62,445 20,415 52,471 83,807 24,434 37,758 12,068 19,283 10,219 52,275 770,431 Number of returns reporting functional expenditures........................................................................................................ 161,525 13,724 13,658 136 Total functional expenditures ²................................................................................................ 677,772,737 37,513,307 12,109,829 22,743,513 Grants and allocations........................................................................................................ 37,740,607 2,093,594 477,987 480,845 Specific assistance to individuals........................................................................................................ 6,680,743 359,616 7,860 43,987 Benefits paid to or for members........................................................................................................ 4,386,994 10,929,303 1,310,833 534,686 Compensation of officers, directors, or trustees........................................................................................................ 8,992,791 277,830 1,081,980 1,143,903 Other salaries and wages........................................................................................................ 245,680,553 3,143,072 2,520,145 4,465,988 Pension plan contributions........................................................................................................ 7,598,968 98,314 378,653 309,595 Other employee benefits........................................................................................................ 27,091,748 420,833 473,508 581,085 Payroll taxes........................................................................................................ 15,959,171 161,065 296,206 366,995 Professional fees........................................................................................................ 610,654 35,991 42,494 35,663 Accounting fees........................................................................................................ 1,371,076 50,712 68,976 109,376 Legal fees........................................................................................................ 1,644,847 84,986 308,739 513,907 Supplies........................................................................................................ 56,241,300 274,751 140,207 233,635 Telephone........................................................................................................ 3,789,295 116,435 133,462 241,384 Postage and shipping........................................................................................................ 102,088 3,087,944 263,257 362,101 Occupancy........................................................................................................ 20,391,535 576,582 349,421 725,360 Equipment rental and maintenance........................................................................................................ 8,917,946 153,071 91,910 224,331 Printing and publications........................................................................................................ 5,413,598 340,493 199,132 906,844 Travel........................................................................................................ 5,815,931 141,602 330,256 634,351 Conferences, conventions, and meetings........................................................................................................ 2,701,985 139,607 283,390 1,644,237 Interest........................................................................................................ 12,781,821 1,387,394 56,169 195,520 Depreciation and depletion........................................................................................................ 29,850,635 578,820 201,674 426,273 Other expenses........................................................................................................ 171,026,238 1,588,592 325,468 856,335 * Estimate should be used with caution because of the small number of sample returns on which it is based. ¹ Excludes private foundations, most churches, and certain other types of religious organizations. ² The differences between "total functional expenditures" shown in this table and "total expenses" shown in Tables 1 and 3 are due to payments to affiliates, which are not considered functional expenditures. NOTES: Data exclude most organizations with receipts less than $25,000. Detail may not add to totals because of rounding. 136 Charities and Other Tax-Exempt Organizations, 1998 Table 3.--Form 990 Returns of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(3)-(9): Selected Balance Sheet and Income Statement Items, by Code Section [All figures are estimates based on samples--money amounts are in thousands of dollars] Item Organizations tax-exempt under Internal Revenue Code section-501(c)(3) ¹ (1) 501(c)(4) (2) 501(c)(5) (3) 13,718 19,450,318 1,263,899 501(c)(6) (4) 20,007 38,519,778 2,028,061 501(c)(7) (5) 10,929 14,804,713 612,342 1,196,511 881,487 8,616 *280 501(c)(8) (6) 5,951 65,057,509 478,459 1,005,750 *64,317 1,823 *188 501(c)(9) (7) 8,827 109,697,631 2,171,495 20,020,420 *4,147,332 16,077 96,360 Number of returns................................................................................................................ 162,559 14,050 Total assets........................................................................................................................ 1,349,649,141 54,258,584 Cash................................................................................................................ 26,468,726 1,290,744 Savings and temporary cash investments ................................................................................................................ 85,802,759 5,772,360 3,854,958 7,156,946 Accounts receivable (net)................................................................................................................ 883,774 88,362,490 3,473,507 Pledges receivable (net)................................................................................................................ 23,267,931 86,227 Grants receivable................................................................................................................ 8,877,250 101,842 Receivables due from officers, directors, trustees, and key employees ............................................................................................................... 145,062 38,234 2,071 7,847 2,814,871 148,948 *11,511 12,204 1,854,880 192,493 75,960 389 163,033 179,410 138,123 503,076 *55 809,345 37,691 268,122 36,373,145 *436 107,576 124,015 138,279 67,523,340 Other notes and loans receivable................................................................................................................ 36,387,524 16,346,599 276,657 Inventories for sale or use................................................................................................................ 28,856 8,036,230 176,813 Prepaid expenses and deferred charges................................................................................................................ 527,640 11,636,203 499,705 123,714 Investments in securities................................................................................................................ 7,905,793 477,665,786 11,224,499 Investments in land, buildings, and equipment minus accumulated depreciation............................................................................................................... 22,788,752 1,095,776 370,528 Other investments................................................................................................................ 125,136,760 2,122,803 Land, buildings, and equipment minus accumulated depreciation............................................................................................................... 350,830,765 6,184,577 Other assets................................................................................................................ 84,242,899 5,844,899 Total liabilities........................................................................................................................ 459,050,478 36,267,390 Accounts payable................................................................................................................ 107,773,244 5,655,851 Grants payable................................................................................................................ 6,106,834 546,674 Loans from officers, directors, trustees, and key employees ............................................................................................................... 588,290 *17,790 *3 *29 23,781 1,660,939 11,578,239 19,275,446 2,734,706 497,191 3,339,296 1,491,040 16,987 3,235,544 1,441,174 19,244,332 3,417,178 41,899 1,484,455 532,577 3,353,766 15,149,070 1,197,679 141,474 512,089 8,513,560 52,877 10,271,112 9,497,971 284,320 4,471,095 879,429 *1,476 457,118 1,509,119 15,483,846 55,493,399 615,591 45,916 54,169 434,209 4,594,102 19,287,136 6,920,727 52,707 171,037 Support and revenue designated for future periods................................................................................................................ 21,021,743 2,167,806 308,186 2,522,268 24,318 *10,073 2,518,986 579,694 10,333,618 1,585 45,253 264,714 54,466,171 9,564,109 743 63,970 136,512 11,941,439 90,410,495 Tax-exempt bond liabilities................................................................................................................ 16,515 132,106,512 5,638,717 Mortgages and other notes payable................................................................................................................ 118,715,576 16,871,043 775,016 Other liabilities................................................................................................................ 72,738,278 5,369,510 731,549 Total fund balance or net worth........................................................................................................................ 890,598,662 17,991,194 16,111,022 Footnotes at end of table. 137 Charities and Other Tax-Exempt Organizations, 1998 Table 3.--Form 990 Returns of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(3)-(9): Selected Balance Sheet and Income Statement Items, by Code Section--Continued [All figures are estimates based on samples--money amounts are in thousands of dollars] Item Organizations tax-exempt under Internal Revenue Code section-501(c)(3) ¹ (1) 501(c)(4) (2) 501(c)(5) (3) 14,850,356 501(c)(6) (4) 23,663,066 501(c)(7) (5) 8,102,318 74,539 48,459 24,876 *1,205 1,429,887 4,725,414 73,649 21,154 49,034 93,985 44,952 7,053 54,199 18,107 154,669 136,563 36,093 91,060 54,968 35,378 157,518 122,140 1,361,411 2,934,268 1,572,857 270,599 7,782,582 (³) (³) (³) 13,141 319,736 501(c)(8) (6) 11,623,313 80,528 70,506 9,236 *786 10,048,606 296,095 44,393 660,311 25,863 42,924 17,061 45,880 90,028 67,453 1,800,071 1,732,618 22,575 47,803 25,227 90,573 310,668 220,095 127,666 335,630 207,964 113,368 10,931,283 (³) (³) (³) 38,353 692,030 501(c)(9) (7) 86,722,723 ----74,828,054 2,839,558 1,152,840 3,090,164 61 11,884 11,823 375,934 2,410,740 2,255,387 100,468,591 98,213,204 155,353 315,809 160,456 3,024 8,991 *5,967 914 4,345 *5,259 2,023,264 78,093,446 (³) (³) (³) 23,373 8,629,277 Total revenue........................................................................................................................ 749,890,036 39,030,295 Total contributions, gifts, and grants received ................................................................................................................ 160,697,814 2,773,598 462,362 1,477,531 Contributions received from direct public support............................................................................................................... 83,359,695 1,295,865 132,713 594,921 Contributions received from indirect public support............................................................................................................... 12,711,938 209,746 190,238 78,472 Government grants............................................................................................................... 64,626,180 1,267,987 139,411 804,137 9,341,779 9,281,997 Program service revenue................................................................................................................2,963,538 502,340,167 31,265,681 Membership dues and assessments................................................................................................................ 6,724,723 1,682,618 9,558,685 Dividends and interest from securities................................................................................................................ 18,136,080 437,044 374,706 Net rental income (loss)................................................................................................................ 1,777,791 159,332 Gross rents............................................................................................................... 3,788,379 281,032 Rental expenses............................................................................................................... 2,010,588 121,700 33,520 136,621 103,101 Interest on savings and temporary cash investments................................................................................................................ 7,292,057 459,547 301,511 536,752 674,124 44,224 140,063 95,840 93,796 522,976 424,613 7,230,934 Other investment income (loss)................................................................................................................ 3,088,501 81,233 43,962 Total gain (loss) from sales of assets................................................................................................................ 29,200,138 1,217,711 255,523 Gain (loss), sales of securities............................................................................................................... 25,426,759 1,056,118 241,418 Gross amount from sales........................................................................................................6,492,414 408,077,187 7,433,883 Gain (loss), sales of other assets............................................................................................................... 3,773,379 161,593 14,105 Gross amount from sales........................................................................................................ 10,337,897 208,059 66,683 Cost or other basis and sales expense........................................................................................................ 6,564,518 46,466 52,578 Cost or other basis and sales expense........................................................................................................ 6,806,321 382,650,427 6,377,764 6,250,996 98,363 340,794 242,431 Net income (loss), special events and activities................................................................................................................ 2,038,807 154,488 17,620 148,847 138 Gross revenue............................................................................................................... 5,683,756 945,386 Direct expenses............................................................................................................... 3,644,948 790,898 83,845 66,226 473,439 324,592 111,118 Gross profit (loss), sales of inventories................................................................................................................ 4,521,756 151,570 9,183 Cost of goods sold............................................................................................................... 5,291,788 283,268 Other revenue (loss)................................................................................................................ 14,072,195 647,472 Total expenses ²........................................................................................................................ 682,558,036 37,535,915 Program services................................................................................................................ 583,029,740 34,028,132 Management and general................................................................................................................ 87,247,542 3,284,332 Fundraising................................................................................................................ 200,843 7,499,125 Payments to affiliates................................................................................................................ 4,785,295 22,608 Gross sales minus returns and allowances............................................................................................................... 9,813,546 434,838 39,310 329,010 30,127 829,745 13,761,155 (³) (³) (³) 1,651,325 217,892 1,429,923 22,888,595 (³) (³) (³) 145,081 Excess of revenue over expenses (net)........................................................................................................................ 67,332,000 1,494,380 1,089,201 774,471 * Estimate should be used with caution because of the small number of sample returns on which it is based. ¹ Excludes private foundations, most churches, and certain other types of religious organizations. ² The differences between "total expenses" shown in this table and "total functional expenditures" shown in Table 2 are due to payments to affiliates, which are not considered functional expenditures. ³ Not required to be reported. NOTES: Data exclude most organizations with receipts less than $25,000. Detail may not add to totals because of rounding. 138 Charities and Other Tax-Exempt Organizations, 1998 Table 4.--Form 990-EZ Returns of Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(3)-(9): Selected Balance Sheet and Income Statement Items, by Code Section [All figures are estimates based on samples--money amounts are in thousands of dollars] Organizations tax-exempt under Internal Revenue Code section-Item 501(c)(3) ¹ (1) 501(c)(4) (2) 501(c)(5) (3) 501(c)(6) (4) 7,272 309,150 288,826 6,382 13,943 10,096 349,113 44,990 88,216 177,693 9,151 *1,472 *6,486 501(c)(7) (5) 5,612 343,797 170,390 126,633 46,775 33,062 310,735 245,940 11,069 47,890 143,225 4,876 *567 *7,425 *6,858 11,623 41,024 29,401 14,604 38,922 24,317 12,084 232,706 7,604 8,521 30,601 10,887 80,568 10,485 84,040 13,234 501(c)(8) (6) 1,747 135,683 76,586 51,243 7,853 9,073 126,610 69,747 9,938 17,993 14,793 4,565 *153 *724 *571 10,947 31,331 20,384 *3,065 *7,144 *4,080 8,294 62,390 14,014 3,135 4,514 1,841 12,846 3,030 23,009 7,357 501(c)(9) ² (7) 373 28,437 27,017 -1,420 1,401 27,036 22,892 4,924 10,347 2,972 868 ---1,945 2,800 855 -93 93 1,836 19,218 136 10,125 1,114 498 350 325 6,669 3,674 Number of returns..........................................................................................................................7,100 44,713 7,751 Total assets.......................................................................................................................... 1,892,255 388,914 Land and buildings (net) ........................................................................................................ 293,046 113,288 Other assets ........................................................................................................ 24,709 277,997 Total liabilities .......................................................................................................................... 137,683 54,821 Total revenue .......................................................................................................................... 2,153,522 315,466 351,126 38,094 17,183 30,761 371,546 Cash, savings, and investments........................................................................................................ 1,321,212 250,918 295,849 Total fund balance or net worth .......................................................................................................................... 299,055 1,754,572 334,094 320,365 Contributions, gifts, and grants .................................................................................................................... 1,053,669 63,534 13,839 Program service revenue .................................................................................................................... 491,892 48,670 23,466 Dues and assessments .................................................................................................................... 226,822 106,542 295,706 Investment income (loss) .................................................................................................................... 45,710 9,825 11,364 Gain (loss) from sales of assets .................................................................................................................... 11,366 1,253 *519 Gross amount from sales ........................................................................................................... 41,395 *6,722 *4,387 Cost or other basis and sales expense ........................................................................................................... *5,014 30,029 *5,469 *3,868 Net income (loss), special events and activities .................................................................................................................... 209,719 55,330 8,668 14,980 Gross revenue ........................................................................................................... 476,075 131,583 Direct expenses ........................................................................................................... 266,356 76,252 16,797 8,129 59,545 44,565 Gross profit (loss), sales of inventories .................................................................................................................... -54 76,607 *6,203 651 Gross sales minus returns and allowances ........................................................................................................... 160,380 *16,945 2,383 2,586 Cost of goods sold ........................................................................................................... 83,773 *10,742 1,732 2,640 12,665 318,703 15,036 12,892 35,560 61,739 13,418 29,318 150,740 Other revenue (loss) .................................................................................................................... 17,332 37,733 24,109 Total expenses.......................................................................................................................... 2,007,838 290,685 Grants paid .................................................................................................................... 268,735 66,089 354,217 57,632 Benefits paid to or for members .................................................................................................................... 44,532 17,761 12,934 Salaries and compensation .................................................................................................................... 415,566 12,040 95,449 Professional fees .................................................................................................................... 185,797 9,327 18,638 Occupancy, rent, and utilities .................................................................................................................... 249,846 35,516 25,719 Printing, publications, and postage .................................................................................................................... 110,186 11,933 8,483 Other expenses .................................................................................................................... 733,171 138,018 135,362 Excess of revenue over expenses (net).......................................................................................................................... 145,684 24,781 17,329 30,410 * Estimate should be used with caution because of the small number of sample returns on which it is based. ¹ Excludes private foundations, most churches, and certain other types of religious organizations. ² Estimates in this column should be used with caution because of the small number of sample returns on which they are based. NOTES: Organizations with end-of-year total assets under $250,000 and gross receipts under $100,000 could elect to file Forms 990-EZ rather than Forms 990. Data exclude most organizations with receipts less than $25,000. Detail may not add to totals because of rounding. 139