Charities 2001[614]

Charities and Other Tax-Exempt Organizations, 2001 by Paul Arnsberger N 126 onprofit charitable organizations exempt from income tax under Internal Revenue Code section 501(c)(3) filed over 240,000 information returns for Reporting Year 2001, an increase of 5 percent from the previous year. These organizations held over $1.6 trillion in assets, an increase of 4 percent from 2000, and reported $897 billion in revenue, 70 percent of which came from program services and activities (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 2001, voluntary employee benefit associations, exempt under Code section 501(c)(9), reported assets of $110.6 billion and revenue of $101.7 billion, larger amounts than those registered by organizations classified under each of the Code sections, 501(c)(4) through (8). The statistics for charities and other tax-exempt organizations reported in this article 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 from filers of the short form, which accounted for 22 percent of the returns filed by organizations exempt under Code sections 501(c)(3) through (9) for Reporting Year 2001. Figure A Selected Items for Nonprofit Charitable Organizations, Reporting Years 2000 and 2001 [Money amounts are in millions of dollars] Percentage Item 2000 2001 change, 2000-2001 (1) (2) (3) Number of returns............................................................................................................................ 230,159 240,569 4.5 Forms 990............................................................................................................................ 184,013 193,953 5.4 Forms 990-EZ............................................................................................................................ 46,146 46,616 1.0 Total assets............................................................................................................................ 1,562,536 1,631,719 4.4 Total liabilities............................................................................................................................ 539,367 611,390 13.4 Total revenue............................................................................................................................ 866,208 896,974 3.6 Total fund balance or net worth.................................................................................................................... 1,023,169 1,020,329 -0.3 Program service revenue.......................................................................................................................... 579,081 630,817 8.9 Investment income¹............................................................................................................................ 29,136 23,678 -18.7 Other............................................................................................................................ 31,021 33,824 9.0 Total expenses............................................................................................................................ 796,434 862,721 8.3 ¹ 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 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. Contributions, gifts, and grants................................................................................................................. 199,076 212,427 6.7 Net gain (loss) from sales of assets.......................................................................................................... 27,895 -3,772 -113.5 CharitableOrganizationsTax-Exemptunder InternalRevenueCodeSection501(c)(3) In order to qualify for tax-exempt status, an organization must show that its purpose serves the public good, as opposed to a private interest. Organizations that are exempt under Code section 501(c)(3) are 126 Paul Arnsberger is an economist with the Special Studies Branch Special Projects Section. This article was prepared under the direction of Barry Johnson, Chief. 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, a donor’s contribution to one of these organizations is tax deductible [1]. Of the 713,288 active nonprofit charitable organizations recognized by the Internal Revenue Service Charities and Other Tax-Exempt Organizations, 2001 (IRS) under Code section 501(c)(3), 240,569 filed Form 990 or 990-EZ returns for accounting periods that began in 2001 [2]. 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 [3]. Nonprofit private foundations, which are also tax-exempt under Code section 501(c)(3), are required to file separately, on Form 990-PF, Return of Private Foundation [4]. The number of returns filed by nonprofit charitable organizations for 2001 was 5 percent more than for 2000. Form 990-EZ returns represented 19 percent of total returns filed by nonprofit charities. 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 for 2001 were filed by organizations with assets of less than $500,000, these organizations held only 1 percent of the total assets and reported less than 4 percent of total revenue (Figure B). In comparison, larger organizations, those with assets of $10 million or more, represented just 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 2001 totalled $1.6 trillion. “Cash, savings, and investments” was the primary component of assets for these organizations, accounting for 53 percent of the total. “Land, buildings, and equipment” owned by nonprofits (but not for investment purposes) represented 27 percent of total assets [5]. The total fund balance (also called “net assets” or “net worth”) of Form 990 and 990-EZ filers remained virtually unchanged at $1.0 trillion for 2001. The nonprofit charitable organizations in this study reported total revenue of $897.0 billion for 2001. “Program service revenue” was the major Figure B Nonprofit Charitable Organizations, by Size of Total Assets and Total Revenue, Reporting Year 2001 [Money amounts are in millions of dollars] Returns Size of organization Number (1) Size of total assets Total.............................................................................................. 240,569 100.0 Under $100,000¹.............................................................................................. 92,083 38.3 1,631,719 3,266 100.0 0.2 0.9 1.0 9.5 12.9 75.4 1,020,329 2,256 11,592 12,426 98,783 129,053 766,218 100.0 0.2 1.1 1.2 9.7 12.6 75.1 896,974 11,602 20,890 21,369 129,765 135,024 578,323 100.0 1.3 2.3 2.4 14.5 15.1 64.5 Percentage of total (2) (3) Total assets Amount Percentage of total (4) (5) Total fund balance Amount Percentage of total (6) (7) Total revenue Amount Percentage of total (8) $100,000 under $500,000.............................................................................................. 61,854 25.7 15,127 $500,000 under $1,000,000.............................................................................................. 23,638 9.8 17,073 $1,000,000 under $10,000,000.............................................................................................. 48,643 20.2 154,988 $10,000,000 under $50,000,000.............................................................................................. 9,847 4.1 210,988 $50,000,000 or more.............................................................................................. 4,504 1.9 1,230,278 Size of total revenue Total.............................................................................................. 240,569 100.0 1,631,719 100.0 3.0 2.8 2.3 15.1 18.5 58.2 1,020,329 39,298 34,866 26,304 163,471 188,169 568,221 100.0 3.9 3.4 2.6 16.0 18.4 55.7 896,974 3,225 18,045 17,484 125,198 159,628 573,394 100.0 0.4 2.0 1.9 14.0 17.8 63.9 Under $100,000².............................................................................................. 87,874 36.5 48,293 $100,000 under $500,000.............................................................................................. 76,634 31.9 46,391 $500,000 under $1,000,000.............................................................................................. 24,529 10.2 38,341 $1,000,000 under $10,000,000.............................................................................................. 41,003 17.0 246,912 $10,000,000 under $50,000,000.............................................................................................. 7,800 3.2 301,997 $50,000,000 or more.............................................................................................. 2,730 1.1 949,785 ¹ Includes returns with zero assets or assets not reported. ² Includes returns with no revenue or revenue not reported. 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 100 percent because of rounding. 127 Charities and Other Tax-Exempt Organizations, 2001 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 income such 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, and YMCA/YWCA. Overall, program service revenue totaled $630.8 billion, a 9-percent increase from 2000. Two sources of nonprofit revenue showed dramatic decreases between Reporting Years 2000 and 2001. Investment income, which primarily includes “interest on savings and temporary cash investments,” and “dividends and interest from securities,” dropped 19 percent to $23.7 billion in 2001. Additionally, “net gain (or loss) from sales of assets other than inventory” plummeted $31.7 billion, from a net gain of $27.9 billion in 2000 to a net loss of $3.8 billion for 2001. 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 over three-fourths of their total revenue Figure C Sources of Nonprofit Charitable Organization Revenue, by Asset Size, Reporting Year 2001 100% 13 11 1 80% 32 35 46 60% 50 65 79 8 1 2 2 3 5 2 4 128 40% 55 20% 53 45 44 29 15 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 128 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. Detail may not add to 100 percent because of rounding. Charities and Other Tax-Exempt Organizations, 2001 from program service revenue, while organizations with assets less than $1 million received over half of their revenue from contributions, gifts, and grants. Total expenses, as reported by 501(c)(3) organizations on Forms 990 and 990-EZ, increased 8 percent to $862.7 billion for 2001. The two largest expense categories, “salaries, other compensation, and employee benefits” and “grants and similar amounts paid,” increased to $357.3 billion and $60.9 billion, respectively, for 2001. On the Form 990 (but not on the Form 990-EZ), expenses for nonprofit charitable organizations are grouped into four major categories: program services, fundraising, management and general, and payments to affiliates. Briefly, program service expenses are those associated with the 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 that 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 occu- pancy. The fourth major category 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 (86 percent) of total expenses reported by filers of the Form 990; management and general expenses totaled nearly 13 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 [6]. It recognizes 26 major groups, which are aggregated into 10 program categories, as shown in Figure D. Within each program category, there is wide diversity in the types of organizations conducting the different functions. The organizations were classified for statistical purposes on the basis of information provided in the Figure D Selected Items for Nonprofit Charitable Organizations Classified by NTEE Category, Reporting Year 2001 [Money amounts are in millions of dollars] Total NTEE major category¹ Number of returns Total assets fund balance or net worth (3) Total Revenue Contributions, gifts, and grants (4) 896,974 22,743 157,307 9,019 509,017 135,846 10,494 1,667 43,666 7,163 52 (5) 212,427 12,931 52,472 5,976 39,615 59,091 9,329 341 27,363 5,275 35 Program service revenue (6) 630,817 6,176 90,788 1,894 450,046 67,229 917 1,160 11,446 1,144 17 (7) 862,721 20,460 148,375 7,454 497,124 131,187 9,888 1,612 39,840 6,730 51 Total expenses Excess of revenue over expenses (net) (8) 34,253 2,283 8,931 1,565 11,893 4,659 606 55 3,826 433 2 (1) (2) 240,569 1,631,719 1,020,329 Total...................................................................................... 26,006 65,714 54,029 Arts, culture, and humanities...................................................................................... Education...................................................................................... 41,153 518,738 377,772 9,413 24,150 Environment, animals...................................................................................... 20,168 32,195 646,979 339,370 Health...................................................................................... Human services...................................................................................... 91,131 189,449 94,498 3,360 10,789 8,166 International, foreign affairs...................................................................................... Mutual, membership benefit...................................................................................... 583 10,262 8,299 21,537 149,554 Public, societal benefit......................................................................................105,070 Religion related...................................................................................... 14,989 15,932 12,838 202 153 120 Unknown, unclassified²...................................................................................... 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. ² Estimates in this row should be used with caution because of the small number of sample returns on which they are based. NOTES: Data are from Forms 990 and 990-EZ for nonprofit charitable organizations that are tax-exempt under 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. 129 Charities and Other Tax-Exempt Organizations, 2001 130 “Statement of Program Service Accomplishments” section of Forms 990 and 990-EZ. Based on the NTEE classification, health was the dominant program category in terms of revenue, accounting for 57 percent of the total. Organizations in the health category also held the largest portion of total assets (40 percent). This category includes organizations that promote the wellness of individuals, the general treatment and prevention of disease or illness (including 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-eight percent of the total revenue for nonprofit charitable organizations in the health category was derived from program services. The education program category includes higher 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 $157.3 billion, slightly less than in 2000. This category also accounted for $518.7 billion in assets—nearly one-third of the total for nonprofit charitable organizations. Thirty-eight percent of the organizations that filed Forms 990 and 990-EZ for 2001 were classified as human service organizations. Program service revenue ($67.2 billion) and contributions, gifts, and grants received ($59.1 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 providing 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 organizations such as the American Red Cross, Salvation Army, Urban League, and YMCAs/YWCAs.) OrganizationsTax-ExemptunderInternal RevenueCodeSections501(c)(4)-(9) The statistics presented in this section are based on the Forms 990 and 990-EZ filed by organizations taxexempt under Code sections 501(c)(4) through (9) [7]. Figure E provides general descriptions of the organizations included under these sections. Unlike the nonprofit charitable organizations that are taxexempt under Code section 501(c)(3), most contributions to these organizations are not taxdeductible. 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 $110.6 billion in assets for 2001, considerably more than organizations exempt under sections 501(c)(4) through (8) (Figure F). This amount represented a decrease of 4 percent from Reporting Year 2000. Fraternal beneficiary societies, section 501(c)(8), and civic leagues and social welfare associations, section 501(c)(4), reported $71.1 billion and $65.5 billion in assets, respectively, for 2001. With the exception of social and recreational 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 38 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, or other assets (such as inventories and receivables), social and recreational clubs reported 65 percent of their assets as land and buildings. 130 Charities and Other Tax-Exempt Organizations, 2001 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 Religious, educational, charitable, scientific, or literary organizations; testing for public safety organizations. Also, organizations preventing cruelty to children or animals, or fostering national or international amateur sports competition 501(c)(4) Civic leagues, social welfare organizations, and local associations of employees Labor, agriculture, and horticultural organizations General nature of activities Activities of a nature implied by the description of the class of organization 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 In terms of revenue, voluntary employee beneficiary associations, section 501(c)(9), were also the largest of the six categories, with $101.7 billion, virtually unchanged from 2000. Civic leagues and social welfare organizations, section 501(c)(4), ranked a distant second in terms of revenue, with $46.1 billion, an increase of 3 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 organizations reported at least 73 percent of their revenue from program services. Membership dues and assessments were the principal source of Figure F Selected Financial Items for Organizations Tax-Exempt Under Internal Revenue Code Sections 501(c)(4)-(9), Reporting Year 2001 [Money amounts are in millions of dollars] Internal Revenue Code section Number of returns (1) Total assets (2) Total liabilities (3) 44,889 4,370 25,189 5,969 61,410 23,982 Total fund balance or net worth (4) 20,630 19,448 19,824 12,685 9,668 86,589 Total revenue (5) 46,101 17,234 27,335 9,682 11,120 101,689 Total expenses (6) 45,155 16,537 26,914 9,465 10,989 107,853 501(c)(4).......................................................................................................................... 22,801 65,518 501(c)(5).......................................................................................................................... 21,045 23,817 29,464 45,013 501(c)(6).......................................................................................................................... 501(c)(7).......................................................................................................................... 17,251 18,654 501(c)(8).......................................................................................................................... 6,754 71,078 501(c)(9).......................................................................................................................... 8,240 110,571 NOTE: Data are from Forms 990 and 990-EZ and exclude most organizations with receipts less than $25,000. 131 Charities and Other Tax-Exempt Organizations, 2001 Figure G Sources of Revenue of Organizations Tax-Exempt Under Internal Revenue Code Sections 501 (c)(4)(9), Reporting Year 2001 100% 6 4 11 11 22 80% 3 40 60% 66 79 40% 73 42 20% 20 18 10 0% 501(c)(4) 3 501(c)(5) 7 501(c)(6) 501(c)(7) 1 501(c)(8) 1 501(c)(9) 59 94 24 4 3 132 Code subsection Contributions, gifts, and grants Program service revenue Membership dues and assessments Other 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. 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 tax-exempt under sections 501(c)(4) through (9). OrganizationsFilingForm990-EZ Organizations that are tax-exempt under Internal Revenue Code section 501(c), with annual gross receipts of less than $100,000 and assets under 132 $250,000, are eligible to file the Form 990-EZ. This form 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 section 501(c)(9) voluntary employee beneficiary associations, Forms 990-EZ represented between 20 and 33 percent of all information returns filed for 2001. (The short form accounted for only 5 percent of the total number of returns filed by organizations exempt under 501(c)(9).) Nonprofit charitable organizations reporting on Form 990-EZ ac- Charities and Other Tax-Exempt Organizations, 2001 counted for a very small proportion of the total assets reported by all filers of Forms 990 and 990-EZ. The assets of nonprofit charitable organizations that filed the 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 instead filed the longer Form 990 are included with the data for the filers of Form 990.) DataSourcesandLimitations The statistics in this article are based on a sample of the 2001 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 2001 forms when their accounting periods ended any time between December 31, 2001, and November 30, 2002. 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. 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 database. 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 17,003 returns was selected from a population of 244,129. Sampling rates ranged from 1.03 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 10,393 returns was selected from a population of 107,321. Sampling rates ranged from 2.00 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 2001. 133 Summary For 2001, nonprofit charitable organizations (excluding private foundations) tax-exempt under section 501(c)(3) reported $1.6 trillion in total assets and $897.0 billion in revenue. The number of returns filed by these organizations was 240,569, including both the Form 990 and the shorter Form 990-EZ. 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 $630.8 billion for Reporting Year 2001. It represented more than two-thirds of the total revenue reported by charitable organizations. Contributions, gifts, and grants increased to $212.4 billion, 7 percent more than in 2000. This source of revenue accounted for more than 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 8 percent over those reported in 2000, to $862.7 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 40 percent of the assets and 57 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 $110.6 billion and $101.7 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). Charities and Other Tax-Exempt Organizations, 2001 However, these returns were excluded from the final sample and 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. Exempt Organizations Business Master File (December 2001) and does not include private foundations filing Form 990-PF, Return of Private Foundation. [3] The $25,000 filing threshold is an average of an organization’s gross receipts over the previous three years. [4] For information on private foundations, see Whitten, Melissa, “Private Foundations and Charitable Trusts, 2001,” in this issue. [5] 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 for this article. Detailed balance sheet data for Form 990 filers are provided in Tables 1 and 3. Form 990-EZ data are found in Table 4. [6] 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, JosseyBass, Inc., 1996; Stevenson, David R., Pollak, Thomas H., and 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. [7] 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 2004, Publication 1136. (Rev. 12-04.) Figure H Coefficients of Variation for Selected Items, by Selected Internal Revenue Code Sections, Reporting Year 2001 Internal Revenue Code section (1) Total revenue Total expenses Total assets Total liabilities Coefficient of variation (percentages) (2) (3) (4) 0.23 0.36 2.34 0.54 2.14 0.09 1.05 501(c)(3)........................................................................................... 0.46 0.48 0.07 501(c)(4)........................................................................................... 1.11 1.15 0.36 501(c)(5)........................................................................................... 1.84 1.91 1.08 134 501(c)(6)........................................................................................... 1.57 1.60 0.61 501(c)(7)........................................................................................... 2.10 2.15 1.43 501(c)(8)........................................................................................... 0.64 0.64 0.19 501(c)(9)........................................................................................... 3.10 3.17 0.25 with receipts less than $25,000. NOTE: Includes data from Forms 990 and 990-EZ and excludes most organizations NotesandReferences [1] 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. [2] Data presented in this article are from 2001 Forms 990 and 990-EZ filed in calendar years 2002 and 2003. The total number of nonprofit charitable organizations, including those not required to file Form 990 or Form 990-EZ, was obtained from the Internal Revenue Service 134 Charities and Other Tax-Exempt Organizations, 2001 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) 55,919 14,212,424 2,712,940 844,587 200,123 312,026 *9,731 264,783 1,036,965 612,314 387,056 3,365,522 279,707 3,445,872 992,180 136,129 $500,000 under $1,000,000 (4) 23,638 17,072,937 2,025,624 3,535,315 988,580 229,116 573,096 *4,053 299,496 189,592 198,241 1,904,455 919,834 619,760 5,166,916 418,858 4,646,855 1,321,925 68,697 $1,000,000 under $10,000,000 (5) 48,643 154,987,931 9,136,189 19,020,380 8,982,530 3,910,411 3,457,649 44,222 3,092,846 1,412,907 1,315,565 26,538,733 6,147,309 8,629,366 56,629,371 6,670,452 56,204,846 12,303,885 1,162,458 3,918,086 298,632 3,021,702 28,423,458 7,076,625 98,783,084 $10,000,000 under $50,000,000 (6) 9,847 210,987,892 6,560,905 18,290,338 12,427,440 6,551,789 2,689,718 28,308 4,809,943 1,735,838 2,015,883 53,989,887 5,883,176 13,430,227 70,707,094 11,867,346 81,934,932 15,330,869 1,694,230 7,417,998 72,338 17,158,861 27,011,689 13,248,947 129,052,960 $50,000,000 or more (7) 4,504 1,230,277,515 16,089,086 64,744,174 74,527,956 22,946,914 4,185,973 103,571 42,895,103 6,643,879 10,750,199 465,752,883 15,335,616 116,839,490 305,302,888 84,159,783 464,059,212 80,997,666 5,104,042 16,717,614 16,677 175,701,926 77,991,378 107,529,909 766,218,302 Number of returns......................................................................................................... 193,953 51,402 Total assets..................................................................................................................... 1,629,617,136 2,078,437 Cash......................................................................................................... 37,366,452 841,708 Savings and temporary cash investments......................................................................................................... 110,042,708 562,482 3,890,021 Accounts receivable (net)......................................................................................................... 97,850,761 79,668 Pledges receivable (net)......................................................................................................... 33,850,747 12,393 Grants receivable......................................................................................................... 58,807 11,277,269 Receivables due from officers, directors, trustees, and key employees......................................................................................................... 1,753 191,638 Inventories for sale or use......................................................................................................... 10,288,983 41,983 Investments in securities......................................................................................................... 549,269,609 46,687 Investments in land, buildings, and equipment minus accumulated depreciation......................................................................................................... 28,986,262 88,014 Other investments......................................................................................................... 9,257 139,915,156 Land, buildings, and equipment minus accumulated depreciation......................................................................................................... 261,098 441,432,889 Other assets......................................................................................................... 103,438,993 42,846 Total liabilities..................................................................................................................... 611,188,827 897,109 Accounts payable......................................................................................................... 111,393,501 446,977 Grants payable......................................................................................................... 8,184,038 Loans from officers, directors, trustees, and key employees......................................................................................................... 563,035 65,649 93,497 -615,647 *18,482 Other notes and loans receivable......................................................................................................... 215,218 51,317,871 *5,267 Prepaid expenses and deferred charges......................................................................................................... 14,387,794 26,475 81,432 Support and revenue designated for future periods......................................................................................................... 534,471 28,861,758 65,070 208,520 *16,242 -2,271,274 434,247 12,426,082 Tax-exempt bond liabilities......................................................................................................... 195,882,489 -Other liabilities......................................................................................................... 130,302 129,035,677 Mortgages and other notes payable......................................................................................................... 137,268,327 170,630 1,399,899 Total fund balance or net worth..................................................................................................................... 1,018,428,309 1,181,327 10,766,553 Footnotes at end of table. 135 Charities and Other Tax-Exempt Organizations, 2001 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) (2) $100,000 under $500,000 (3) 20,592,658 $500,000 under $1,000,000 (4) 21,369,415 9,578,937 $1,000,000 under $10,000,000 (5) 129,764,537 56,523,999 21,979,807 3,119,599 31,424,592 65,002,798 1,752,074 887,670 1,037,757 480,933 968,905 487,972 23,616 -30,011 -272,082 10,871,354 11,143,436 242,072 1,325,234 1,083,162 1,056,621 2,326,106 1,269,486 1,359,531 3,060,874 1,701,343 1,669,549 124,708,817 105,883,418 15,858,934 2,233,587 732,878 5,055,720 $10,000,000 under $50,000,000 (6) 135,024,146 39,500,696 22,011,304 2,391,296 15,098,096 87,613,828 1,645,297 934,170 1,877,941 381,027 782,586 401,559 34,597 -407,425 -579,558 26,498,305 27,077,863 172,133 1,285,337 1,113,204 284,722 631,231 346,510 927,541 2,407,233 1,479,693 2,231,752 130,391,940 111,129,244 16,946,093 2,052,486 264,118 4,632,205 $50,000,000 or more (7) 578,323,027 89,334,926 50,876,087 7,590,793 30,868,046 457,275,225 1,962,866 3,915,680 13,456,944 1,132,423 2,768,899 1,636,477 1,026,669 -3,331,082 -4,644,665 355,595,026 360,239,691 1,313,583 6,262,384 4,948,802 187,902 647,153 459,250 1,976,433 4,150,988 2,174,555 11,385,041 555,599,530 479,925,933 68,783,582 4,737,234 2,152,780 22,723,497 Total revenue..................................................................................................................... 894,813,218 9,739,435 Total contributions, gifts, and grants received ......................................................................................................... 211,340,114 5,421,358 10,980,198 Contributions received from direct public support................................................................................................................. 108,065,595 3,150,811 5,977,544 4,070,041 Contributions received from indirect public support................................................................................................................. 14,561,940 467,394 531,508 461,349 Government grants................................................................................................................. 88,712,578 1,803,151 Program service revenue ......................................................................................................... 630,357,976 3,323,157 4,471,146 7,296,308 5,047,547 9,846,659 662,242 74,877 62,508 88,221 25,713 2,054 -48,330 -23,483 496,711 520,194 -24,847 447,753 472,599 324,154 970,602 646,448 248,970 544,330 295,360 448,979 20,465,548 17,245,127 2,752,503 408,489 59,428 903,867 Membership dues and assessments......................................................................................................... 7,033,270 292,195 718,596 Dividends and interest from securities......................................................................................................... 16,502,973 4,675 50,779 Net rental income (loss)......................................................................................................... 2,176,796 14,091 Gross rents................................................................................................................. 4,804,656 19,417 Rental expenses................................................................................................................. 2,627,860 *5,326 Other investment income......................................................................................................... 1,083,398 463 105,815 176,629 70,814 -4,001 Interest on savings and temporary cash investments......................................................................................................... 168,363 6,056,900 21,601 129,416 Total gain (loss) from sales of assets......................................................................................................... -3,783,593 5,432 27,821 Gain (loss), sales of securities................................................................................................................. 513 -5,519,778 *-503 Gross amount from sales................................................................................. 393,721,713 *26,104 234,214 233,701 197,676 170,367 Cost or other basis and sales expense................................................................................. 399,241,491 *26,607 Gross amount from sales................................................................................. 9,552,030 33,646 Gain (loss), sales of other assets................................................................................................................. 1,736,185 5,935 27,309 Cost or other basis and sales expense................................................................................. 7,815,845 27,711 Net income (loss), special events and activities......................................................................................................... 2,689,726 389,878 446,449 Gross revenue................................................................................................................. 7,798,668 1,261,489 1,962,088 1,515,639 136 Direct expenses................................................................................................................. 5,108,943 871,611 Gross profit (loss), sales of inventories......................................................................................................... 5,040,496 144,099 383,922 Gross sales minus returns and allowances................................................................................................................. 11,577,268 471,022 942,820 Cost of goods sold................................................................................................................. 6,536,771 326,923 Other revenue (loss)......................................................................................................... 16,315,157 122,483 Total expenses²..................................................................................................................... 860,774,983 9,872,253 Program services......................................................................................................... 738,710,249 8,322,850 Management and general......................................................................................................... 108,686,582 1,292,280 Fundraising......................................................................................................... 10,099,921 199,895 Payments to affiliates......................................................................................................... 3,278,225 57,226 558,898 457,353 19,736,894 16,203,677 3,053,190 468,230 11,797 Excess of revenue over expenses (net)..................................................................................................................... 34,038,236 -132,818 855,764 * 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. 136 Charities and Other Tax-Exempt Organizations, 2001 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) Number of returns reporting functional expenditures............................................... 193,092 501(c)(4) (2) 14,991 501(c)(5) (3) 14,165 501(c)(6) (4) 22,018 501(c)(7) (5) 11,997 9,227,851 44,567 3,031 13,077 104,423 3,222,943 47,447 281,243 376,348 3,270 47,949 18,693 339,954 51,909 38,416 1,038,482 286,555 84,387 27,702 60,311 216,879 834,302 2,085,959 501(c)(8) (6) 5,370 10,910,161 255,966 21,548 7,608,748 73,889 679,445 78,996 492,152 79,077 1,691 22,302 22,712 49,336 22,737 30,077 269,597 43,718 48,248 27,366 54,702 19,705 100,608 907,537 501(c)(9) (7) 7,765 107,533,034 1,362,476 1,560,647 90,638,328 347,835 544,589 87,575 1,385,108 62,973 8,773 89,664 105,802 42,033 20,613 60,674 83,409 26,976 39,899 10,443 18,301 60,904 55,555 10,920,457 Total functional expenditures²................................................................................ 14,321,543 857,496,753 44,525,391 26,438,978 Grants and allocations.............................................................................. 52,488,627 2,159,107 632,402 632,915 Specific assistance to individuals.............................................................................. 8,084,513 633,929 65,562 14,580 Benefits paid to or for members.............................................................................. 4,659,103 14,117,665 1,477,004 631,242 Compensation of officers, directors, or trustees........................................................... 11,825,308 375,646 1,224,568 1,437,223 Other salaries and wages....................................................................................................................... 5,156,755 298,189,670 3,153,643 2,931,259 Pension plan contributions....................................................................................................................... 390,038 9,705,887 123,624 472,470 Other employee benefits....................................................................................................................... 37,227,785 578,133 669,755 809,682 Payroll taxes....................................................................................................................... 20,397,349 192,988 437,794 439,378 Professional fundraising fees....................................................................................................................... 113,574 723,555 23,035 76,084 Accounting fees....................................................................................................................... 1,641,109 64,429 84,829 132,802 Legal fees....................................................................................................................... 370,615 2,103,285 145,023 470,967 Supplies....................................................................................................................... 161,820 72,600,679 338,384 238,021 Telephone....................................................................................................................... 146,203 4,367,946 116,311 249,887 Postage and shipping....................................................................................................................... 3,447,681 292,340 113,823 333,546 Occupancy....................................................................................................................... 411,515 25,837,765 851,149 886,650 Equipment rental and maintenance....................................................................................................................... 11,336,688 217,979 111,854 288,678 Printing and publications....................................................................................................................... 5,879,560 365,284 242,144 928,062 Travel....................................................................................................................... 7,039,863 186,188 380,120 669,816 Conferences, conventions, and meetings................................................................. 3,470,221 142,601 339,077 1,742,161 Interest................................................................................... 14,563,242 1,563,473 55,008 235,358 Depreciation and depletion................................................................................... 37,071,820 748,995 249,012 556,228 Other expenses................................................................................... 224,835,076 18,135,463 3,668,623 10,081,415 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. 137 Charities and Other Tax-Exempt Organizations, 2001 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] Organizations tax-exempt under Internal Revenue Code section-Item 501(c)(3)¹ (1) 501(c)(4) (2) 501(c)(5) (3) 14,197 23,469,044 1,782,676 501(c)(6) (4) 22,023 44,714,176 2,535,965 2,329,936 208,000 79,853 18,582 3,811,334 183,488 16,333,311 579,410 4,220,534 4,262,301 1,489,464 25,151,101 4,012,670 62,897 501(c)(7) (5) 12,068 18,330,680 771,023 1,446,506 984,985 7,491 *582 4,580 175,226 211,990 185,118 535,116 1,580,245 136,133 11,996,825 294,859 5,939,115 885,597 *5,517 625,850 *14,940 *6,639 3,540,954 859,618 12,391,564 501(c)(8) (6) 5,380 70,952,724 374,543 1,337,079 69,888 *3,893 *214 *489 265,589 33,650 15,475 40,049,576 376,569 26,223,083 1,526,211 676,465 61,405,764 356,662 *47,678 73,401 *1,582 *69,963 265,093 60,591,385 9,546,959 501(c)(9) (7) 7,816 110,543,599 2,523,584 13,436,248 5,002,156 *7,409 85,280 *4,519 110,136 5,221 181,395 77,104,776 40,573 8,028,800 354,777 3,658,726 23,981,280 8,780,176 159,121 250,058 --725,020 14,066,905 86,562,319 Number of returns................................................................................................................ 193,953 15,176 Total assets........................................................................................................................ 1,629,617,136 65,151,828 Cash................................................................................................................ 2,134,081 37,366,452 Savings and temporary cash investments................................................................................................................ 110,042,708 6,296,274 5,072,628 7,961,208 Accounts receivable (net)................................................................................................................ 97,850,761 3,414,041 1,056,114 Pledges receivable (net)................................................................................................................ *8,291 33,850,747 109,790 Grants receivable................................................................................................................ 11,277,269 247,624 Receivables due from officers, directors, trustees, and key employees................................................................................................................ 191,638 *13,396 2,664 Other notes and loans receivable................................................................................................................ 51,317,871 22,478,291 388,427 Inventories for sale or use................................................................................................................ 29,424 10,288,983 616,156 Investments in securities................................................................................................................ 549,269,609 11,963,504 8,898,133 Investments in land, buildings, and equipment minus accumulated depreciation................................................................................................................ 28,986,262 1,290,630 387,695 Other investments................................................................................................................ 139,915,156 2,957,129 Land, buildings, and equipment minus accumulated depreciation................................................................................................................ 441,432,889 7,328,148 Other assets................................................................................................................ 103,438,993 5,519,070 Total liabilities........................................................................................................................ 611,188,827 44,841,899 Accounts payable................................................................................................................ 111,393,501 5,791,503 Grants payable................................................................................................................ 8,184,038 353,293 Loans from officers, directors, trustees, and key employees................................................................................................................ 563,035 *8,212 *44 *7,533 *24,909 2,557,566 15,126,223 Tax-exempt bond liabilities................................................................................................................ 195,882,489 6,740,671 *10,259 Mortgages and other notes payable................................................................................................................ 137,268,327 22,679,007 1,204,064 Other liabilities................................................................................................................ 129,035,677 7,323,903 1,138,248 3,455,528 507,339 4,335,294 1,632,364 31,281 1,694,939 13,885 Prepaid expenses and deferred charges................................................................................................................ 700,790 14,387,794 783,694 171,303 138 Support and revenue designated for future periods................................................................................................................ 28,861,758 1,945,311 319,033 3,359,303 Total fund balance or net worth........................................................................................................................ 19,563,075 1,018,428,309 20,309,929 19,133,749 Footnotes at end of table. 138 Charities and Other Tax-Exempt Organizations, 2001 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 501(c)(3)¹ (1) Organizations tax-exempt under Internal Revenue Code section-501(c)(4) (2) 501(c)(5) (3) 16,886,568 501(c)(6) (4) 26,991,229 501(c)(7) (5) 9,458,992 99,086 75,096 20,468 3,523 1,664,560 5,605,587 68,672 17,020 60,599 106,450 45,851 8,292 4,372 7,964 155,453 147,489 -3,591 28,268 31,859 51,974 172,654 120,680 1,558,498 3,279,242 1,720,744 320,331 9,249,460 (³) (³) (³) 21,609 209,532 501(c)(8) (6) 11,064,910 64,818 56,378 8,018 *421 8,090,094 287,940 56,902 2,138,657 31,010 52,489 21,479 63,013 51,516 55,149 9,458,459 9,403,310 -3,633 31,367 35,000 95,100 378,869 283,769 130,811 363,329 232,518 55,048 10,938,363 (³) (³) (³) 28,202 126,547 501(c)(9) (7) 101,663,353 300 --300 95,287,870 2,612,025 1,011,861 2,508,915 40 15,498 15,457 -59,127 -311,782 -331,476 114,749,136 115,080,612 19,694 560,329 540,636 3,238 *8,449 *5,211 *-1,828 *39,858 *41,686 611,840 107,826,933 (³) (³) (³) 293,899 -6,163,580 Total revenue..................................................................................................................... 894,813,218 45,795,024 Total contributions, gifts, and grants received ......................................................................................................... 211,340,114 4,692,785 549,610 1,923,451 Contributions received from direct public support................................................................................................................. 108,065,595 1,833,171 318,319 842,092 Contributions received from indirect public support................................................................................................................. 14,561,940 662,992 70,937 81,638 Government grants................................................................................................................. 88,712,578 2,196,621 160,355 999,720 11,357,635 10,647,149 661,865 75,025 197,740 122,715 61,314 48,683 -7,696 17,596,326 17,604,022 56,379 155,914 99,535 544,124 367,622 142,007 218,520 1,444,627 26,574,694 (³) (³) (³) 135,716 Program service revenue ......................................................................................................... 3,438,557 630,357,976 36,505,740 Membership dues and assessments......................................................................................................... 7,033,270 1,945,226 11,100,138 Dividends and interest from securities......................................................................................................... 16,502,973 444,482 403,252 Net rental income (loss)......................................................................................................... 2,176,796 188,362 Gross rents................................................................................................................. 4,804,656 298,052 Rental expenses................................................................................................................. 2,627,860 109,690 Other investment income......................................................................................................... 1,083,398 370,477 57,267 140,036 82,769 25,672 Interest on savings and temporary cash investments......................................................................................................... 6,056,900 410,011 292,502 452,971 Total gain (loss) from sales of assets......................................................................................................... -3,783,593 63,746 -9,867 Gain (loss), sales of securities................................................................................................................. -5,519,778 -39,617 -53,001 Gross amount from sales................................................................................. 393,721,713 16,948,582 6,837,782 Cost or other basis and sales expense................................................................................. 399,241,491 16,988,199 6,890,782 Gain (loss), sales of other assets................................................................................................................. 1,736,185 103,363 43,134 Gross amount from sales................................................................................. 9,552,030 197,323 137,153 Cost or other basis and sales expense................................................................................. 94,019 7,815,845 93,959 Gross revenue................................................................................................................. 7,798,668 913,223 Direct expenses................................................................................................................. 5,108,943 724,326 72,571 43,693 Net income (loss), special events and activities......................................................................................................... 2,689,726 188,897 28,879 176,501 Gross profit (loss), sales of inventories......................................................................................................... 5,040,496 154,304 17,657 Cost of goods sold................................................................................................................. 6,536,771 294,252 Other revenue (loss)......................................................................................................... 16,315,157 830,994 Total expenses²..................................................................................................................... 860,774,983 44,859,989 Program services......................................................................................................... 738,710,249 39,978,593 Management and general......................................................................................................... 108,686,582 4,226,630 Fundraising......................................................................................................... 320,168 10,099,921 Payments to affiliates......................................................................................................... 3,278,225 334,598 33,016 982,902 16,217,493 (³) (³) (³) 1,895,950 Gross sales minus returns and allowances................................................................................................................. 11,577,268 448,557 50,672 360,527 Excess of revenue over expenses (net)..................................................................................................................... 34,038,236 935,035 669,075 416,535 * 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 $25,0000. Detail may not add to totals because of rounding. 139 Charities and Other Tax-Exempt Organizations, 2001 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) 6,848 348,338 501(c)(6) (4) 7,441 298,860 279,118 7,185 12,557 38,132 501(c)(7) (5) 5,183 323,473 155,618 134,626 33,229 29,672 293,801 223,318 9,439 59,335 113,698 5,620 3,759 16,682 *12,923 8,416 32,496 24,080 8,043 23,597 15,554 15,007 215,100 6,621 11,871 22,083 11,823 70,376 9,299 83,028 8,153 501(c)(8) (6) 1,374 125,285 77,999 43,551 3,735 4,258 121,027 54,837 8,388 10,747 11,940 4,714 *82 *510 *428 10,053 24,268 14,214 *2,021 *4,585 *2,564 6,892 50,612 10,672 *4,093 2,976 426 10,116 2,060 20,269 4,225 501(c)(9)* (7) 424 27,482 25,944 -1,538 1,069 26,413 25,743 1,240 13,789 8,504 724 ---329 360 31 ---1,156 25,916 1,943 12,389 2,593 439 536 365 7,652 -173 Number of returns...................................................................................................................... 46,616 7,625 Total assets.......................................................................................................................... 2,102,200 366,577 Cash, savings, and investments ...................................................................................................................... 1,469,777 268,552 302,002 408,107 81,096 32,761 Land and buildings (net) ...................................................................................................................... Other assets ...................................................................................................................... 224,317 16,929 Total liabilities .......................................................................................................................... 201,281 46,722 13,576 34,528 Total fund balance or net worth .......................................................................................................................... 260,728 1,900,919 319,856 313,810 Total revenue .......................................................................................................................... 2,160,321 305,947 347,884 344,082 46,320 87,068 167,902 7,499 *342 *742 *400 69,938 50,980 1,087,365 73,226 19,621 Contributions, gifts, and grants ...................................................................................................................... Program service revenue ...................................................................................................................... 459,018 50,922 16,789 Dues and assessments ...................................................................................................................... 205,928 99,202 267,110 Investment income (loss) ...................................................................................................................... 34,998 9,002 12,247 Gain (loss) from sales of assets ...................................................................................................................... 11,671 *-310 *258 Gross amount from sales .............................................................................................................. 46,017 *3,320 *4,698 Cost or other basis and sales expense .............................................................................................................. 34,345 *3,629 *4,440 536,104 128,459 Gross revenue .............................................................................................................. Direct expenses .............................................................................................................. 318,387 77,951 18,727 11,791 Net income (loss), special events and activities ...................................................................................................................... 217,715 50,509 6,937 18,958 Gross profit (loss), sales of inventories ...................................................................................................................... *-74 70,947 4,695 *74 Gross sales minus returns and allowances .............................................................................................................. 158,206 14,040 *947 *1,424 Cost of goods sold .............................................................................................................. 87,258 9,345 *874 *1,498 16,067 339,119 20,668 8,126 42,882 56,806 13,583 26,573 170,481 72,674 18,700 Other revenue (loss) ......................................................................................................................24,849 140 Total expenses.......................................................................................................................... 1,945,625 294,933 Grants paid ...................................................................................................................... 323,869 59,411 319,423 56,063 Benefits paid to or for members ...................................................................................................................... 23,216 16,327 13,338 Salaries and compensation ...................................................................................................................... 356,548 11,698 81,234 164,596 14,544 Professional fees ...................................................................................................................... 17,164 Occupancy, rent, and utilities ...................................................................................................................... 247,532 31,359 21,845 Printing, publications, and postage ...................................................................................................................... 81,454 12,475 6,986 Other expenses ...................................................................................................................... 748,405 149,117 122,791 Excess of revenue over expenses (net).......................................................................................................................... 206,596 11,014 28,461 4,963 *Estimate(s) should be used with caution because of the small number of sample returns on which they are based. ¹ Excludes private foundations, most churches, and certain other types of religious organizations. 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 $25,0000. Detail may not add to totals because of rounding. 140