NONPROFITS IN WASHINGTON
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1 NONPROFITS IN WASHINGTON RECENT STATISTICS AND POLICY DEVELOPMENTS PUTNAM BARBER NANCY BELL EVANS CENTER ON NONPROFITS AND PHILANTHROPY EVANS SCHOOL OF PUBLIC POLICY & GOVERNANCE UNIVERSITY OF WASHINGTON DESIGN SUPPORT: JOHN COMPTON (MPA 11)
2 ACTIVE PUBLIC CHARITIES IN WASHINGTON STATE This update of Nonprofits in Washington contains the most recent key indicators of the scope and activities of nonprofit organizations based in Washington state. More detailed information about the sources and limitations of the available data, as well as more extensive discussion of trends over time, can be found here: In the text that follows, references to the 214 edition of this report refer to the table numbers and accompanying text. These references are shown like this: (214: Figure 1). We are grateful to the National Center for Charitable Statistics ( and the Charities Division of the Office of Washington Secretary of State Kim Wyman ( for access to unpublished data used in preparing this report. Nancy Bell Evans Center on Nonprofits and Philanthropy Evans School of Public Policy & Governance Box University of Washington Seattle, WA Active public charities is the term used by the United States Internal Revenue Service (IRS) to describe familiar community-serving nonprofits such as hospitals, theaters, schools, environmental protection organizations, etc. These organizations are required to file an annual report with the IRS within the most recent 24 month period. As of December 215, there were 18,911 active public charities in Washington state. This represents a modest increase of 74 over the last review period. More than one-third of these organizations (6,869) reported revenue of $5, or more. (214: Figures 4 & 5) In Washington, the majority of nonprofit organizations are relatively small. This trend is seen nationwide. Two-thirds of active public charities report less than $5, in annual revenues. The number of such small organizations in Washington increased by 272 (to 12,42) between 214 and 215 (just 2.3 percent). The number of larger organizations increased by 468 (to 6,869) between 214 and 215 (7.3 percent). All the public charities reported in the IRS files are not included in these counts because those that have not filed recent reports may be inactive or dissolved. ALL TAX-EXEMPT ORGANIZATIONS 15, 1, 5, PUBLIC CHARITIES WITH REVENUE LESS THAN $5, PUBLIC CHARITIES WITH REVENUE GREATER THAN $5, In the text that follows, references to the 214 edition of this report refer to the table numbers and accompanying text. These references are shown like this: (214: Figure 1). There are 21 types of tax-exempt organizations for which information is available from IRS statistics. In December 215, the total for all types of tax-exempt organizations for Washington state was 34,588, of which approximately 22 percent had not filed a report in the last 24 months and may be inactive or dissolved. In general, only organizations included in Section 51(c)(3) public charities and private foundations are eligible to receive tax-deductible donations and be exempt from federal corporate income taxes. Other types of tax-exempt organizations are typically exempt from federal taxes on their net income, but not eligible to receive deductible donations. COVER IMAGE BY HYPERVAL -
3 NUMBER AND DENSITY OF ACTIVE PUBLIC CHARITIES REVENUE AND ASSETS BY SERVICE AREA As might be expected, the more populous counties along the I-5 corridor in the western part of the state are home to the largest numbers of public charities. As the map to the right shows, though, the proportion of public charities to the local population is highest in several of Washington state s least populous counties. Some details about the public charities located in each Washington county can be found on the Nancy Bell Evans Center s website at evans.uw.edu/centers-projects/nbec/nonprofitswashington. (214: Figures 2 & 3) TOP 3 COUNTIES BY # OF CHARITIES: KING 6,73 PIERCE 1,752 SNOHOMISH 1,447 TOP 3 COUNTIES BY PROPORTION OF POPULATION (# PER 1, PEOPLE) SAN JUAN 1.9 JEFFERSON 6.2 GARFIELD 5. 3 The IRS groups public charities into 25 broad categories of services. Most of these categorizes contain a relatively small number of organizations. Importantly, Human Services (2,411), Education (1,192), and Health (78) make up over 6 percent of all active public charities. (Churches are typically not included in these figures because they are not required to file financial information with the IRS). From a financial point of view, the impact of these three categories is even more pronounced. Health organizations receive 7 percent of total revenue in the nonprofit sector, and the assets of health organizations (buildings, equipment, etc.) account for 6 percent of the industry total. Both education and human services organizations receive more income and hold more assets than all the other categories of active public charities combined. Overall, the revenue of these active public charities rose 9 percent from 214 to 215. As expected, there were wide variations in the rates for different categories. Notably, revenue for arts, cultural, and humanities organizations grew at more than 17 percent over the year, while education, health, and human services each grew at a little less than 6 percent. Over the same period, the total assets of all organizations grew by 11 percent. Both the arts and health organizations groupings increased total assets by about 1 percent. Human services organizations saw a decline in assets of just under 2 percent, while education and the broad group of other organizations increased assets by about 3 percent. (214: Figures 9 & 1) $5 TOTAL REVENUE AND ASSETS OF ACTIVE PUBLIC CHARITIES WITH REVENUE GREATER THAN $5, $45 $4 $35 Detailed financial information is available from the $7 $3 IRS only for organizations with at least $5, in annual revenue. These active public charities $6 $25 reported a total of $38.5 billion dollars in revenues to the IRS in 215 and held year-end assets totaling $6.3 billion. Revenues increased by 9 percent from $5 $4 $2 $ and total year-end assets increased by 11 percent (214: Figure 6). $3 $2 $ $1 $5 ARTS, CULTURE, AND HUMANITIES EDUCATION HEALTH HUMAN SERVICES MULTIPURPOSE AND OTHER ALL OTHERS PUBLIC CHARITIY TOTAL REVENUE PUBLIC CHARITIY TOTAL ASSETS REVENUE BY SERVICE AREA ASSETS BY SERVICE AREA
4 PRIVATE FOUNDATIONS NUMBER OF NONPROFIT CORPORATIONS In December 215, there were 1,136 private $1 The Corporations Division of the Washington 6, foundations in Washington state an increase of 42 Secretary of State s office files the articles of from 214. (The IRS defines a private foundation as a 51(c)(3) organization that receives its revenue from $9 incorporation and annual reports for nonprofit corporations based in Washington. After a 55, a small group of donors or the interest earned on an endowment.) Most of these foundations are quite $8 period of quite rapid growth to the year 21, the number of corporations with active filings has 5, small 9 out of 1 have assets of less than $1 million and the average for this group is just $1.4 million. $7 remained quite steady, reaching a total of 58,992 (just 1,223 more than the 21 total) in 215. The 45, The 12 foundations with assets of more than $1 number of nonprofit corporations is larger than million had a total of $88 billion the assets of the Bill and Melinda Gates Foundation and Trust made up $82 $6 the IRS count of tax-exempt entities because there are many types of nonprofit corporations 4, billion of this total. (214: Figure 11) Of the Gates Foundation s $4.9 billion in grant expenditures in 214, $612 million was for the $5 $4 that are not eligible for (and some that do not seek) exempt status under the Internal Revenue Code. (214: Figure 12) 35, 3, U.S. Program, which includes some local work in [Optional] Organizations making charitable Washington state. The annual auditor s report includes this sentence: The Foundation also works to address $3 appeals to the public also register with the Secretary of State. In the spring of 215, 4,341 25, issues of social inequity and poverty in Washington state, where the Gates family has lived for generations and the Foundation makes its headquarters. (214 audit report) $2 $ such organizations with addresses in Washington state and an additional 6,94 organizations based in other states were registered. The number of out-of-state registrations increased by 2,97 from 214 to 215, while the number of Washingtonbased organization making fundraising appeals declined by 1,778. 2, 15, 1, TOTAL ASSETS WITHOUT GATES TOTAL ASSETS INCLUDING GATES Churches and volunteer groups with less than $5, in annual revenue are exempt from registration, but may file an identifying declaration with the Secretary of State s Office 5, in order to clarify their fundraising status. The number of organizations filing such declarations in recent years rose from 2,613 in 211 to 5,56 in 215. This increase is likely the result of the state raising the threshold for exemption from $25, to $5,.
5 The Nancy Bell Evans Center on Nonprofits and Philanthropy at the Evans School of Public Policy & Governance enhances the understanding and vitality of the nonprofit and philanthropic sector through research, education, and community engagement. The Center provides: Research on nonprofits, philanthropy, and non-governmental organizations. Community outreach and events connecting members of the academic, nonprofit, and philanthropic communities. Resources for easier access to information about nonprofits and philanthropy. Learn more about the Nancy Bell Evans Center by visiting the website at Nancy Bell Evans Center on Nonprofits and Philanthropy Box :: Seattle, WA
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