National Study of Nonprofit-Government Contracts and Grants 2013: State Profiles

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www.urban.org Study of Nonprofit-Government Contracts and Grants 2013: State Profiles Sarah L. Pettijohn, Elizabeth T. Boris, and Maura R. Farrell Data presented for each state: Problems with Government Contracts/Grants 2012 Government Experience Compared to Previous Year Key Problems Reported for Government Contracts State Rankings: Small and Big Problems Limitations on Full Costs in Government Contracts/Grants Limits on Program Administrative Expenses/Overhead Costs Limits on General Administrative Expenses/Overhead Costs Contracts that Require Matching or Sharing Costs Grants that Require Matching or Sharing Costs Overview of Nonprofit Contractors and Grantees Number of Nonprofits with Government Contracts/Grants Dollar Amount of Government Contracts/Grants Types of Nonprofits with Government Contracts/Grants Average Number of Government Agencies Nonprofits Worked with in 2012 Actions Taken by Nonprofits in 2012 Financial Status of Nonprofits with Government Contracts/Grants Expenditure Size of Nonprofits with Deficits State Nonprofits Experiencing Declines in Revenue Center on Nonprofits and Philanthropy CONTENTS INTRODUCTION NATIONAL ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA COLORADO CONNECTICUT DELAWARE DISTRICT OF COLUMBIA FLORIDA GEORGIA HAWAII IDAHO ILLINOIS INDIANA IOWA KANSAS KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI MISSOURI MONTANA NEBRASKA NEVADA NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEW YORK NORTH CAROLINA NORTH DAKOTA OHIO OKLAHOMA OREGON PENNSYLVANIA RHODE ISLAND SOUTH CAROLINA SOUTH DAKOTA TENNESSEE TEXAS UTAH VERMONT VIRGINIA WASHINGTON WEST VIRGINIA WISCONSIN WYOMING STATE RANKINGS METHODOLOGY APPENDIX

Center on Nonprofits and Philanthropy Copyright April 2014. The Urban Institute. All rights reserved. Except for short quotes, no part of this report may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying, recording, or by information storage or retrieval system, without written permission from the Urban Institute. The Urban Institute is a nonprofit, nonpartisan policy research and educational organization that examines the social, economic, and governance problems facing the nation. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

URBAN INSTITUTE Center on Nonprofits and Philanthropy Introduction Governments and nonprofit organizations partner to provide needed services in communities across the country. Contracts and grants are the mechanisms governments use to fund these partnerships. In the first national survey of nonprofits that receive government contracts and grants, Human Service Nonprofits and Government Collaboration: Findings from the 2010 Survey of Nonprofit Government Contracting and Grants, we provided comprehensive evidence of the scope of government funding of human service nonprofits and the administrative issues that accompany that funding. We also documented the negative effects of the economic recession on human service nonprofits ability to provide services; these effects were exacerbated by government actions such as late payments for services provided. The recession had dire effects on nonprofits funding from government and private sources, in a time when the demand for services was higher than normal. In 2012, we conducted a second national survey, Nonprofit Government Contracts and Grants: Findings from the 2013 Survey, expanding the scope of the previous study to include most types of nonprofits. 1 We found that nonprofit government contracts and grants reached approximately 56,000 nonprofits and totaled $137 billion and that the effects of the recession were still evident. The research reveals that problems reported with government contracts and grants in 2009 are not confined to human services nonprofits, although problems are less pronounced for grants than for contracts. Nonprofit organizations in 2012 were still dealing with many of the same issues as in 2009. This report provides data on government contracts and grants with nonprofits, problems encountered, and the current fiscal situation of nonprofit organizations in each state. The State Rankings provide a useful indication of how states compare to each other on these issues. Some states are low performers on most indicators, while others have more mixed results. Each state is in a unique economic and political situation that affects the experiences of its nonprofits. The state profiles present infor- 1

URBAN INSTITUTE Center on Nonprofits and Philanthropy mation on the scope of contracts and grants in each state, the problems encountered, and the financial status of all types of organizations included in the study. The number of government contracts and grants reported by nonprofits varied across the states. Of the nearly 56,000 nonprofit organizations with contracts and/or grants with the government in 2012, for example, California had 5,172 while Nevada had 194. Population in these states varies greatly with the U.S. Census Bureau reporting that in 2012 nearly 40 million individuals lived in California compared to just over 2.7 million individuals in Nevada. Contracting with multiple agencies is a way for organizations to diversify their income and protect themselves from risk, but it can also complicate administration for nonprofits because different government agencies have different application and reporting processes and requirements. About 30 percent of nonprofits had a contract or grant with only one government agency, while 41 percent had contracts or grants with two to three agencies, and 29 percent had contracts or grants with four or more agencies. In Rhode Island, 42 percent of nonprofit organizations had contracts or grants with four or more government agencies, and 19 percent had funding from one agency, while in New Hampshire, 24 percent of nonprofits had funding from four or more agencies, but 52 percent had contracts or grants with only one agency. Contracts and grants vary in structure and administration. Some require organizations to match or share the costs of programs or services they fund. Some limit the types of activities that nonprofits can spend money on. It is common for contracts or grants to restrict expenditures for program administration or overhead costs. Nationwide, 50 percent of organizations report such limits on program administration or overhead costs, and 53 percent report limits on general administration or overhead costs. States tend to have different policies on this issue. In Hawaii, 72 percent of organizations report limits on general administrative/overhead costs and 62 percent report limits on program administrative overhead. In Nebraska about one third of all organizations report these constraints. These limits can severely undermine an organ- 2

URBAN INSTITUTE Center on Nonprofits and Philanthropy ization s capacity and effectiveness by restricting its ability to adequately manage its programs or invest in staff and equipment. Of the organizations that responded, 95 percent stated that they must report some aspect of the results of their programs to governments. All of the organizations in several states report having such a requirement; Delaware was on the low end of this spectrum with 82 percent of organizations reporting these requirements. Such reporting requirements are an important way for governments to ensure accountability from nonprofits. Seventy two percent of nonprofits reported a problem with the complexity of or time required by government reporting processes. As the trend toward more frequent and rigorous reporting continues, the challenges for both nonprofits and governments to reduce administrative burdens while providing adequate accountability will increase. In addition to questions about reporting problems, the survey asked nonprofits whether other issues posed a problem to their organizations in 2012. These issues include the complexity of or time required by application processes for government contracts and grants, payments not covering the full cost of contracted services, government changes to contracts or grants midstream, and late payments. Nearly three fourths of organizations nationwide reported problems with the complexity of or time required for applications and reporting. However, there is great diversity across the states and what might be a big problem in one state may not be as troublesome in another. Organizations in different states faced different problems. For example, 75 percent of nonprofits in New Jersey reported a problem with payments from government not covering the full cost of contracted services, while only 28 percent of organizations in Colorado reported this problem. In Rhode Island, 81 percent of organizations reported a problem with late payments, compared with only 14 percent in New Hampshire. In Rhode Island, 67 percent of organizations reported a problem with changes to government contracts and grants midstream, but in the District of Columbia, only 23 percent of organizations reported this 3

URBAN INSTITUTE Center on Nonprofits and Philanthropy problem. While some states consistently reported problems across all areas, other states had more varied responses. In Alaska, 80 percent of organizations reported problems with the complexity of or time required by the application process for government contracts and grants, one of the worst rates in the country. However, only 23 percent of organizations reported a problem with late payments, making Alaska the second best performer on this indicator. Each state must focus on its own strengths and weaknesses to improve the situation for its nonprofits. Nationwide, only about one fifth of organizations said that in previous years their experience with government contracts and grants was worse. Again, there is great diversity among the states. For example, in Georgia, 44 percent of nonprofits reported a worse experience, compared with only 10 percent in Oklahoma. However, a majority of organizations in all states said that their experience with government contracts and grants was neither better nor worse than in prior years. Although the recession officially ended in 2010, two years later many nonprofits were still feeling its effects. Despite a sluggish economy in 2012, some state governments began to recover financially. Economic and political uncertainty, however, remained and affected revenues for many nonprofits. Further, some nonprofits that relied on government funds remained stressed as federal stimulus money dried up. The survey asked about changes in revenue from various sources. The results reveal that revenue from all major funding sources local, state, and federal government agencies; individual and corporate donations; private foundations; and investment incomes decreased for one third to half of all organizations. Government budgets continued to reduce spending on nonprofits, and, with federal stimulus money slowing down, nearly half of all organization reported a decrease in revenue from federal agencies. In Rhode Island, 64 percent of organizations reported reduced revenue from their state agencies, and 65 percent of organizations in Pennsylvania reported decreases in funding from local agencies. Organizations in 4

URBAN INSTITUTE Center on Nonprofits and Philanthropy every state reported that governments sometimes paid for contracted services late, which can further exacerbate financial strain. This ranged from 14 percent of organizations reporting problems with late payments in New Hampshire, to 81 percent of organizations in Rhode Island. The effects of funding decreases and late payments can be seen in nonprofits balance sheets. Nationwide, 38 percent of nonprofit organizations ended 2012 with a deficit. In South Carolina, 56 percent of nonprofits had a deficit and in Missouri and Alaska, the states with the best performance on this indicator, 28 percent did. Nonprofits reacted to reduced revenue and other problems by making a number of cutbacks. The survey asked about nonprofits actions in relation to: employee salaries, employee benefits, the number of employees, use of reserves, use of loans or lines of credit, and the number of programs or services offered by the organization. Over half of nonprofits froze or reduced their employees salaries, while 42 percent drew from their reserves. Despite the crunch on resources, most organizations continued to serve their communities without cutting programs. Only 11 percent of organizations nationwide reduced the number of programs or services they offered. At a state level, the range varied from 28 percent of organizations in the District of Columbia, to 2 percent in Connecticut. This report has two components: state profiles, and state rankings for all nonprofits. The state profiles provide information on all nonprofits in each state in 2012. The information in the state profiles include: number and type of nonprofits; the number of government agencies nonprofits worked with; nonprofits contracting experience compared with prior years; key problems facing nonprofits, such as late payments, insufficient payments, difficulty with the application or reporting process, and changes to government contracts and grants; contract and grant limitations and reporting requirements; 5

URBAN INSTITUTE Center on Nonprofits and Philanthropy nonprofits budget deficits and decreases in revenue sources; and cutbacks nonprofits made in 2012. The state rankings provide details on: total number of nonprofits; nonprofits contracting experience in 2012 compared with prior years; variations on contract requirements, limitations, and reporting; percent of organizations in states hardest hit by the recession and those facing the largest declines in revenue from major sources (local, state, and federal governments and donations from individuals, corporations, and private foundations); and percent of organizations in states experiencing the most problems with their government contracts, including rankings on late payments, changes to government contracts and insufficient payments. These state profiles and state rankings can help nonprofits assess their experiences with government contracts and grants and compare their state with other states. States with higher performance may enjoy stronger fiscal positions, or they may have policies that lead to more effective and efficient contract and grants processes and relationships. These results will also help policymakers and nonprofit organizers alike to identify best practices and make connections that could lead to improved processes in their states. 6

URBAN INSTITUTE Center on Nonprofits and Philanthropy The full report, Nonprofit Government Contracts and Grants: Findings from the 2013 Survey, and a brief summarizing the report, Contracts and Grants between Nonprofits and Government, can be found on the Urban Institute website; the full report is available at http://www.urban.org/ publications/412962.html. The brief is available at: (http://www.urban.org/publications/412968.html). Acknowledgements This study is part of a collaborative project of the Urban Institute s Center on Nonprofits and Philanthropy and the Council of Nonprofits. The project was funded by the Bill & Melinda Gates Foundation. Notes 1 Data reported are based on a national survey of 501(c)(3) public charities with budgets greater than $100,000. Hospitals, higher education organizations, and other types of nonprofits not likely to have government contracts and grants were excluded from this sample. Analysis is limited to nonprofits reporting government contracts and or grants. See Methodology section for more details on response rate and data weights. 7

URBAN INSTITUTE Center on Nonprofits and Philanthropy 8

URBAN INSTITUTE Center on Nonprofits and Philanthropy STATE PROFILES: ALL NONPROFITS 9

URBAN INSTITUTE Center on Nonprofits and Philanthropy 10

Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 6% 73% 21% Problems with Government Contracts and Grants NOT A SMALL BIG Payments do not cover full cost of contracted services 46% 22% 32% Complexity of/time required by application process 28% 39% 32% Complexity of/time required by reporting process 28% 40% 31% Government changes to contracts/grants midstream 56% 23% 20% Late payments (beyond contract specifications) 55% 26% 19% Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 50% reporting limits on general administrative /overhead 53% Contracts require matching or sharing costs 26% Grants require matching or sharing costs 52% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 11 10 9 10 14 15 17 18 18 Program overhead General overhead 24 28 27 5 10 15 20 25 30 Percent of organizations reporting limits 11

Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 55,702 $137,392 Arts, culture, and humanities Education Environment and animals Health Human services Types of Organizations Other 4% 7% 13% 12% 11% 53% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 30% 41% 29% Actions Taken by Nonprofits 26% 6% 12% employees Reduced health, retirement, or other staff benefits 42% 22% 11% Drew on reserves offices or program sites Borrowed funds or increased lines of credit programs or services 13% people served 53% Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more 17% 48% Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 33% 32% 39% 37% 43% 47% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 12

Alabama Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 3% 76% 20% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 55% 13% 32% 37 Complexity of/time required by application process 33% 43% 24% 31 Complexity of/time required by reporting process 27% 52% 21% 21 Government changes to contracts/grants midstream 56% 25% 19% 25 Late payments (beyond contract specifications) 68% 17% 15% 40 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 42% reporting limits on general 43% Contracts require matching or sharing costs 28% Grants require matching or sharing costs 54% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 8 7 10 14 14 16 15 22 Program overhead General overhead 30 30 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 33 13

Alabama Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 490 $2,791 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 8% 6% 3% 10% 12% 62% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 33% 41% 27% Actions Taken by Nonprofits Alabama 24% 26% n/r 7% n/r 12% 27% 14% employees 45% 42% Drew on reserves offices or program sites 43% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 9% 11% 57% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more n/r n/r n/r Alabama 17% 48% Alabama Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 39% 34% 32% 45% 43% 61% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 14

Alaska Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 7% 80% 13% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 69% 29% 2% 50 Complexity of/time required by application process 20% 52% 28% 8 Complexity of/time required by reporting process 30% 42% 29% 28 Government changes to contracts/grants midstream 67% 29% 5% 38 Late payments (beyond contract specifications) 77% 12% 11% 50 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 48% reporting limits on general 62% Contracts require matching or sharing costs 9% Grants require matching or sharing costs 59% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 6 6 10 10 10 10 16 17 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 22 Program overhead General overhead 29 32 33 15

Alaska Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 325 $456 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r n/r 12% 21% 22% 46% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 26% 50% 25% Actions Taken by Nonprofits Alaska 18% 26% 3% 7% 14% 12% 5% 14% employees 29% 42% Drew on reserves offices or program sites 17% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 10% 11% 49% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits Alaska $100,000 to $249,999 $250,000 to $999,999 $1 million or more 14% 17% 37% 49% 48% Alaska Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 20% 15% 32% 27% 24% 37% 32% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 16

Arizona Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 13% 68% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 50% 22% 28% 28 Complexity of/time required by application process 18% 52% 30% 4 Complexity of/time required by reporting process 30% 40% 31% 28 Government changes to contracts/grants midstream 45% 37% 17% 6 Late payments (beyond contract specifications) 60% 27% 12% 27 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 49% reporting limits on general 54% Contracts require matching or sharing costs 24% Grants require matching or sharing costs 38% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 3 3 3 3 3 7 14 21 29 37 38 0 10 20 30 40 50 Percent of organizations reporting limits Program overhead General overhead 38 17

Arizona Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 919 $791 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 3% 8% 9% 11% 29% 40% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 41% 49% 11% Actions Taken by Nonprofits Arizona 27% 26% 7% 7% 21% 12% 4% 14% employees 63% 42% Drew on reserves offices or program sites 11% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 3% 11% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Arizona 5% 17% 23% 48% Arizona Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 71% Corporate donations Investment income 21% 42% 31% 51% 59% 45% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 18

Arkansas Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 3% 81% 16% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 38% 40% 21% 8 Complexity of/time required by application process 40% 32% 29% 45 Complexity of/time required by reporting process 45% 27% 28% 50 Government changes to contracts/grants midstream 67% 25% 7% 38 Late payments (beyond contract specifications) 74% 19% 7% 48 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 58% reporting limits on general 49% Contracts require matching or sharing costs 19% Grants require matching or sharing costs 51% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 13 14 15 15 16 16 17 15 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 21 25 33 Program overhead General overhead 19

Arkansas Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 408 $1,204 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 3% 2% 10% 14% 11% 59% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 15% 78% 6% Actions Taken by Nonprofits Arkansas 29% 26% 11% 7% 6% 12% 23% 14% employees 51% 42% Drew on reserves offices or program sites 24% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 8% 11% 56% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Arkansas 9% 17% 38% Arkansas Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 52% Corporate donations 48% Investment income 15% 26% 31% 41% 46% 39% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 20

California Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 8% 69% 23% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 31% 22% 47% 4 Complexity of/time required by application process 19% 32% 49% 5 Complexity of/time required by reporting process 20% 39% 41% 6 Government changes to contracts/grants midstream 48% 23% 28% 13 Late payments (beyond contract specifications) 41% 30% 30% 6 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 58% reporting limits on general 67% Contracts require matching or sharing costs 22% Grants require matching or sharing costs 53% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 6 5 6 11 10 13 18 20 24 26 0 10 20 30 40 Percent of organizations reporting limits 27 Program overhead General overhead 34 21

California Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 5,172 $14,027 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 1% 2% 8% 12% 17% 59% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 20% 52% 28% Actions Taken by Nonprofits California 18% 26% 6% 7% 10% 12% 9% 14% employees 44% 42% Drew on reserves offices or program sites 24% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 11% 11% 57% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more California 10% 17% 37% California Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 52% Corporate donations 48% Investment income 28% 26% 43% 39% 48% 49% 49% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 22

Colorado Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 9% 77% 14% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 72% 12% 16% 51 Complexity of/time required by application process 34% 50% 16% 34 Complexity of/time required by reporting process 39% 25% 47 Government changes to contracts/grants midstream 65% 11% 24% 33 Late payments (beyond contract specifications) 59% 23% 18% 25 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 40% reporting limits on general 35% Contracts require matching or sharing costs 16% Grants require matching or sharing costs 40% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r n/r 11 12 14 13 16 0 5 10 15 20 25 30 35 21 23 Percent of organizations reporting limits Program overhead General overhead 28 31 32 23

Colorado Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,232 $1,681 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 5% 10% 15% 9% 14% 47% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 29% 48% 23% Actions Taken by Nonprofits Colorado 22% 26% 2% 7% 8% 12% 24% 14% employees 37% 42% Drew on reserves offices or program sites 10% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 9% 11% 58% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Colorado 17% 17% 38% 45% 48% Colorado Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 14% 35% 32% 29% 38% 39% 47% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 24

Connecticut Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 8% 61% 30% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 37% 25% 38% 6 Complexity of/time required by application process 24% 34% 42% 15 Complexity of/time required by reporting process 18% 42% 41% 2 Government changes to contracts/grants midstream 37% 24% 40% 3 Late payments (beyond contract specifications) 48% 35% 17% 10 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 56% reporting limits on general 61% Contracts require matching or sharing costs 40% Grants require matching or sharing costs 44% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 3 7 7 12 11 13 14 18 0 10 20 30 40 Percent of organizations reporting limits 22 22 Program overhead General overhead 33 36 25

Connecticut Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,083 $3,126 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 2% 4% 9% 12% 16% 56% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 33% 41% 26% Actions Taken by Nonprofits Connecticut 15% 26% 4% 7% 2% 12% 7% 14% employees 48% 42% Drew on reserves offices or program sites 11% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 2% 11% 57% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more n/r Connecticut 17% 40% 48% 60% Connecticut Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 23% 39% 35% 37% 50% 48% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 26

Delaware Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 6% 83% 11% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 67% 7% 25% 47 Complexity of/time required by application process 29% 35% 38 Complexity of/time required by reporting process 33% 40% 27% 36 Government changes to contracts/grants midstream 76% 4% 20% 50 Late payments (beyond contract specifications) 70% 17% 12% 44 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 41% reporting limits on general 37% Contracts require matching or sharing costs 14% Grants require matching or sharing costs 23% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 6 6 6 7 11 19 24 0 10 20 30 40 50 Percent of organizations reporting limits 24 28 29 Program overhead General overhead 40 27

Delaware Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 235 $453 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 3% 3% 11% 12% 24% 47% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 42% 43% 16% Actions Taken by Nonprofits Delaware 15% 26% 2% 7% 6% 12% 8% 14% employees 58% 42% Drew on reserves offices or program sites 17% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 3% 11% 44% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Delaware 17% 19% 40% 41% 48% Delaware Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 26% 25% 28% 24% 33% 29% 25% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 28

District of Columbia Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 3% 76% 22% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 59% 14% 27% 41 Complexity of/time required by application process 23% 46% 31% 12 Complexity of/time required by reporting process 33% 46% 21% 36 Government changes to contracts/grants midstream 77% 9% 14% 51 Late payments (beyond contract specifications) 69% 18% 13% 43 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 39% reporting limits on general 61% Contracts require matching or sharing costs 11% Grants require matching or sharing costs 49% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 3 5 9 10 16 16 17 18 0 10 20 30 40 Percent of organizations reporting limits 33 36 37 Program overhead General overhead 29

District of Columbia Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 729 $1,850 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 6% 10% 15% 15% 22% 32% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 52% 41% 7% Actions Taken by Nonprofits District of Columbia 27% 26% 15% 7% 14% 12% 10% 14% employees 43% 42% Drew on reserves offices or program sites 4% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 28% 11% 53% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits District of Columbia $100,000 to $249,999 $250,000 to $999,999 $1 million or more 14% 17% 33% District of Columbia Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 53% Corporate donations 48% Investment income n/r 12% 26% 24% 29% 46% 51% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 30

Florida Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 4% 68% 28% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 49% 22% 29% 25 Complexity of/time required by application process 27% 34% 39% 19 Complexity of/time required by reporting process 26% 33% 41% 14 Government changes to contracts/grants midstream 55% 25% 20% 22 Late payments (beyond contract specifications) 52% 41% 7% 13 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 53% reporting limits on general 58% Contracts require matching or sharing costs 25% Grants require matching or sharing costs 50% Limits Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 15% + 7 5 General overhead 11 15% 20 12 8 10% 4 7% 1 3% 0% 13 15 15 19 19 23 26 27 0 5 10 15 20 25 30 Percent of organizations reporting limits 31

Florida Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 2,024 $3,878 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r 5% 8% 16% 20% 51% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 26% 42% 33% Actions Taken by Nonprofits Florida 46% 26% 6% 7% 22% 12% 18% 14% employees 50% 42% Drew on reserves offices or program sites 45% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 15% 11% 53% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Florida 10% 17% 30% 48% 60% Florida Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 42% 45% 41% 34% 27% 42% 34% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 32

Georgia Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 9% 48% 44% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 37% 32% 31% 6 Complexity of/time required by application process 25% 33% 42% 17 Complexity of/time required by reporting process 32% 22% 46% 35 Government changes to contracts/grants midstream 56% 23% 21% 25 Late payments (beyond contract specifications) 45% 35% 19% 8 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 50% reporting limits on general 54% Contracts require matching or sharing costs 47% Grants require matching or sharing costs 52% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r n/r 5 4 6 11 13 16 23 0 10 20 30 40 50 60 Percent of organizations reporting limits 29 Program overhead General overhead 44 48 33

Georgia Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 970 $1,203 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 11% 9% 8% 7% 13% 52% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 23% 51% 26% Actions Taken by Nonprofits Georgia 39% 26% 2% 7% 9% 12% 14% 14% employees 50% 42% Drew on reserves offices or program sites 19% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 5% 11% 58% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Georgia 17% 23% 35% 42% 48% Georgia Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 25% 40% 46% 35% 43% 61% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 34

Hawaii Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 15% 66% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 53% 25% 21% 33 Complexity of/time required by application process 23% 33% 44% 12 Complexity of/time required by reporting process 26% 42% 32% 14 Government changes to contracts/grants midstream 42% 34% 24% 4 Late payments (beyond contract specifications) 33% 31% 3 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 62% reporting limits on general 72% Contracts require matching or sharing costs 18% Grants require matching or sharing costs 33% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 4 4 10 12 10 14 15 13 23 0 10 20 30 40 50 Percent of organizations reporting limits 27 29 38 Program overhead General overhead 35

Hawaii Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 415 $615 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r n/r 9% 14% 22% 55% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 20% 61% 19% Actions Taken by Nonprofits Hawaii 38% 26% 9% 7% 12% 12% 10% 14% employees 66% 42% Drew on reserves offices or program sites 28% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 13% 11% 61% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits Hawaii $100,000 to $249,999 $250,000 to $999,999 $1 million or more 17% 23% 29% 48% 48% Hawaii Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 25% 39% 29% 44% 39% 30% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 36

Idaho Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 6% 72% 22% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 39% 17% 44% 10 Complexity of/time required by application process 33% 44% 23% 31 Complexity of/time required by reporting process 33% 41% 26% 36 Government changes to contracts/grants midstream 51% 11% 38% 16 Late payments (beyond contract specifications) 53% 23% 24% 15 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 57% reporting limits on general 64% Contracts require matching or sharing costs 24% Grants require matching or sharing costs 85% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 3 9 7 13 14 15 20 21 0 10 20 30 40 50 Percent of organizations reporting limits 27 28 Program overhead General overhead 43 37

Idaho Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 230 $298 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 11% 4% 11% 4% 7% 64% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 26% 47% 26% Actions Taken by Nonprofits Idaho 38% 26% 8% 7% 23% 12% 16% 14% employees 33% 42% Drew on reserves offices or program sites 5% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 9% 11% 66% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 Idaho 17% 39% Idaho Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 40% 37% 33% 62% $1 million or more 25% 48% Corporate donations Investment income 42% 46% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 38

Illinois Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 5% 61% 34% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 30% 21% 48% 3 Complexity of/time required by application process 23% 42% 35% 12 Complexity of/time required by reporting process 18% 41% 41% 2 Government changes to contracts/grants midstream 44% 26% 29% 5 Late payments (beyond contract specifications) 25% 27% 48% 2 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 54% reporting limits on general 61% Contracts require matching or sharing costs 31% Grants require matching or sharing costs 53% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 3 6 7 10 11 12 21 22 22 Program overhead General overhead 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 27 29 32 39

Illinois Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 2,657 $8,531 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 5% 5% 14% 13% 13% 50% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 24% 41% Actions Taken by Nonprofits Illinois 26% 26% 6% 7% 23% 12% 18% 14% employees 40% 42% Drew on reserves offices or program sites 29% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 13% 11% 57% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Illinois 10% 17% 40% Illinois Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 51% Corporate donations 48% Investment income 30% 42% 31% 35% 51% 50% 50% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 40

Indiana Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 4% 77% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 40% 24% 14 Complexity of/time required by application process 42% 22% 38 Complexity of/time required by reporting process 28% 37% 35% 24 Government changes to contracts/grants midstream 46% 39% 15% 8 Late payments (beyond contract specifications) 55% 32% 14% 19 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 38% reporting limits on general 37% Contracts require matching or sharing costs 11% Grants require matching or sharing costs 43% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r n/r 6 9 10 15 16 15 18 22 0 10 20 30 40 50 60 Percent of organizations reporting limits 39 Program overhead General overhead 51 41

Indiana Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,099 $2,067 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 12% 4% 7% 6% 9% 62% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 28% 59% 14% Actions Taken by Nonprofits Indiana 31% 26% 6% 7% 14% 12% 21% 14% employees 31% 42% Drew on reserves offices or program sites 15% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 15% 11% 49% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Indiana 17% 33% 32% 35% 48% Indiana Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 23% 38% 26% 23% 35% 24% 57% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 42

Iowa Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 4% 70% 26% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 35% 20% 45% 5 Complexity of/time required by application process 19% 35% 46% 5 Complexity of/time required by reporting process 31% 42% 27% 31 Government changes to contracts/grants midstream 65% 20% 16% 33 Late payments (beyond contract specifications) 54% 44% 3% 16 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 57% reporting limits on general 49% Contracts require matching or sharing costs 24% Grants require matching or sharing costs 49% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 8 9 10 11 14 16 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 17 18 18 22 Program overhead General overhead 26 32 43

Iowa Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 660 $712 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 4% 3% 11% 11% 16% 55% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 17% 66% 17% Actions Taken by Nonprofits Iowa 13% 26% 1% 7% 2% 12% 5% 14% employees 50% 42% Drew on reserves offices or program sites 20% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 7% 11% 37% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Iowa 18% 17% 33% 49% 48% Iowa Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 27% 29% 22% 45% 45% 44% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 44

Kansas Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 79% 21% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 57% 26% 17% 39 Complexity of/time required by application process 44% 31% 24% 47 Complexity of/time required by reporting process 38% 43% 19% 45 Government changes to contracts/grants midstream 68% 18% 15% 43 Late payments (beyond contract specifications) 65% 21% 14% 32 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 46% reporting limits on general 51% Contracts require matching or sharing costs 30% Grants require matching or sharing costs 50% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 5 6 9 11 15 20 20 20 Program overhead General overhead 28 29 0 10 20 30 40 Percent of organizations reporting limits 37 45

Kansas Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 483 $354 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 6% 8% n/r 15% 12% 59% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 55% 9% Actions Taken by Nonprofits Kansas 26% 7% 7% 8% 12% 24% 14% employees 49% 42% Drew on reserves offices or program sites 37% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 9% 11% 58% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Kansas 17% 24% 29% 47% 48% Kansas Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 30% 59% 42% 28% 30% 38% 50% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 46

Kentucky Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 9% 74% 17% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 54% 20% 26% 36 Complexity of/time required by application process 30% 38% 32% 22 Complexity of/time required by reporting process 26% 46% 28% 14 Government changes to contracts/grants midstream 47% 11% 41% 10 Late payments (beyond contract specifications) 68% 22% 10% 40 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 46% reporting limits on general 52% Contracts require matching or sharing costs 16% Grants require matching or sharing costs 66% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 10 10 12 15 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 17 18 18 18 21 Program overhead General overhead 27 33 47

Kentucky Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 568 $1,330 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r 6% 14% 13% 12% 56% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 37% 43% 20% Actions Taken by Nonprofits Kentucky 30% 26% 6% 7% 10% 12% 14% 14% employees 43% 42% Drew on reserves offices or program sites 24% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 11% 11% 60% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 Kentucky 14% 17% Kentucky Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 31% 31% 38% 52% 51% $1 million or more 51% 48% Corporate donations Investment income 37% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 48

Louisiana Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 12% 71% 17% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 50% 25% 25% 28 Complexity of/time required by application process 35% 29% 36 Complexity of/time required by reporting process 30% 44% 26% 28 Government changes to contracts/grants midstream 58% 24% 18% 27 Late payments (beyond contract specifications) 50% 26% 23% 11 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 42% reporting limits on general 41% Contracts require matching or sharing costs 5% Grants require matching or sharing costs 57% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 7 8 9 11 13 14 15 19 0 10 20 30 40 Percent of organizations reporting limits 20 24 Program overhead General overhead 26 34 49

Louisiana Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 621 $885 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r 7% 13% 12% 11% 57% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 42% 44% 14% Actions Taken by Nonprofits Louisiana 25% 26% 3% 7% 12% 12% 8% 14% employees 37% 42% Drew on reserves offices or program sites 21% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 6% 11% 65% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Louisiana 20% 17% 26% Louisiana Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 54% Corporate donations 48% Investment income 22% 41% 34% 34% 33% 60% 52% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 50

Maine Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 0% 75% 25% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 56% 14% 30% 38 Complexity of/time required by application process 39% 25% 38 Complexity of/time required by reporting process 31% 37% 32% 31 Government changes to contracts/grants midstream 50% 34% 16% 16 Late payments (beyond contract specifications) 52% 23% 25% 13 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 46% reporting limits on general 45% Contracts require matching or sharing costs 26% Grants require matching or sharing costs 46% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r n/r n/r 12 16 17 18 21 22 0 10 20 30 40 50 24 30 Percent of organizations reporting limits 40 Program overhead General overhead 51

Maine Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 434 $531 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 6% 5% 7% 9% 13% 61% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 25% 61% 14% Actions Taken by Nonprofits Maine 40% 26% 18% 7% 23% 12% 22% 14% employees 43% 42% Drew on reserves offices or program sites 28% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 20% 11% 60% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Maine 17% 20% 32% 48% 48% Maine Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 33% 14% 23% 31% 49% 48% 62% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 52

Maryland Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 10% 78% 13% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 46% 22% 32% 22 Complexity of/time required by application process 17% 47% 2 Complexity of/time required by reporting process 12% 39% 49% 1 Government changes to contracts/grants midstream 66% 19% 15% 36 Late payments (beyond contract specifications) 54% 28% 18% 16 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 55% reporting limits on general 61% Contracts require matching or sharing costs 25% Grants require matching or sharing costs 38% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 9 11 11 12 14 17 17 17 18 Program overhead General overhead 28 23 0 5 10 15 20 25 30 Percent of organizations reporting limits 23 53

Maryland Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,081 $4,062 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 4% 3% 5% 15% 23% 50% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 21% 54% 25% Actions Taken by Nonprofits Maryland 19% 26% 10% 7% 5% 12% 6% 14% employees 35% 42% Drew on reserves offices or program sites 30% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 9% 11% 45% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Maryland 14% 17% 31% Maryland Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 55% Corporate donations 48% Investment income 22% 23% 29% 39% 40% 40% 46% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 54

Massachusetts Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 11% 79% 10% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 45% 18% 37% 18 Complexity of/time required by application process 24% 42% 34% 15 Complexity of/time required by reporting process 23% 40% 37% 10 Government changes to contracts/grants midstream 61% 16% 24% 29 Late payments (beyond contract specifications) 65% 14% 21% 32 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 31% reporting limits on general 47% Contracts require matching or sharing costs 33% Grants require matching or sharing costs 45% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 4 5 5 6 8 12 15 19 20 0 10 20 30 40 50 Percent of organizations reporting limits 27 Program overhead General overhead 33 46 55

Massachusetts Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,832 $3,479 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 18% 8% 2% 13% 9% 50% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 25% 52% 23% Actions Taken by Nonprofits Massachusetts 23% 26% 9% 7% 3% 12% 10% 14% employees 31% 42% Drew on reserves offices or program sites 17% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 6% 11% 46% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits Massachusetts $100,000 to $249,999 $250,000 to $999,999 $1 million or more 20% 17% 38% 42% 48% Massachusetts Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 37% 41% 42% 37% 42% 33% 30% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 56

Michigan Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 13% 62% 25% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 50% 23% 28% 28 Complexity of/time required by application process 37% 38% 25% 41 Complexity of/time required by reporting process 41% 23% 39 Government changes to contracts/grants midstream 55% 26% 18% 22 Late payments (beyond contract specifications) 61% 28% 11% 28 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 50% reporting limits on general 49% Contracts require matching or sharing costs 17% Grants require matching or sharing costs 56% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 4 3 6 10 11 13 16 15 24 Program overhead General overhead 29 35 33 0 10 20 30 40 Percent of organizations reporting limits 57

Michigan Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,634 $2,029 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 7% 5% 8% 6% 13% 61% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 35% 43% 22% Actions Taken by Nonprofits Michigan 22% 26% 8% 7% 9% 12% 10% 14% employees 32% 42% Drew on reserves offices or program sites 11% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 10% 11% 56% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 Michigan 13% 17% 38% Michigan Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 24% 35% 39% 39% 52% $1 million or more 49% 48% Corporate donations Investment income 32% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 58

Minnesota Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 3% 78% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 50% 28% 22% 28 Complexity of/time required by application process 20% 66% 14% 8 Complexity of/time required by reporting process 23% 63% 13% 10 Government changes to contracts/grants midstream 66% 20% 14% 36 Late payments (beyond contract specifications) 75% 21% 4% 49 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 60% reporting limits on general 59% Contracts require matching or sharing costs 21% Grants require matching or sharing costs 56% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 8 8 10 14 15 19 19 22 21 0 5 10 15 20 25 30 35 23 Percent of organizations reporting limits Program overhead General overhead 33 59

Minnesota Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,396 $2,219 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r 12% 10% 10% 14% 53% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 29% 47% 24% Actions Taken by Nonprofits Minnesota 18% 26% 5% 7% 10% 12% 22% 14% employees 43% 42% Drew on reserves offices or program sites 18% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 8% 11% 46% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Minnesota 14% 17% 34% Local government agencies State government agencies Federal government agencies 52% Individual donations Private foundations Corporate donations 48% Investment income Minnesota Nonprofits Experiencing Declines in Revenue from 29% 38% 38% 30% 38% 56% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 60

Mississippi Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 7% 71% 22% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 45% 4% 51% 18 Complexity of/time required by application process 51% 18% 31% 51 Complexity of/time required by reporting process 62% 9% 29% 51 Government changes to contracts/grants midstream 48% 28% 24% 13 Late payments (beyond contract specifications) 54% 26% 20% 16 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 57% reporting limits on general 49% Contracts require matching or sharing costs 21% Grants require matching or sharing costs 37% Limits Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 15% + 13 24 General overhead 11 15% 8 10% 4 7% 1 3% 0% 6 7 8 9 8 9 17 0 10 20 30 40 29 Percent of organizations reporting limits 34 36 61

Mississippi Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 202 $736 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 8% 8% 8% 14% 19% 43% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 23% 62% 15% Actions Taken by Nonprofits Mississippi 49% 26% 13% 7% 13% 12% 34% 14% employees 62% 42% Drew on reserves offices or program sites 29% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 24% 11% 80% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Mississippi 16% 17% 41% 43% 48% Mississippi Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 55% 55% 57% 57% 53% 54% 69% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 62

Missouri Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 1% 87% 12% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 39% 21% 40% 10 Complexity of/time required by application process 30% 42% 29% 22 Complexity of/time required by reporting process 26% 43% 31% 14 Government changes to contracts/grants midstream 62% 20% 19% 30 Late payments (beyond contract specifications) 63% 19% 18% 29 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 48% reporting limits on general 59% Contracts require matching or sharing costs 27% Grants require matching or sharing costs 62% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 2 6 8 8 9 15 20 20 25 Program overhead General overhead 44 43 0 10 20 30 40 50 Percent of organizations reporting limits 63

Missouri Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,415 $3,255 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 7% 10% 3% 13% 15% 52% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 33% 45% 22% Actions Taken by Nonprofits Missouri 11% 26% 3% 7% 8% 12% 15% 14% employees 34% 42% Drew on reserves offices or program sites 20% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 13% 11% 38% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Missouri 12% 17% 19% 48% Missouri Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 69% Corporate donations Investment income 22% 46% 54% 37% 35% 38% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 64

Montana Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 2% 81% 17% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 39% 41% 20% 10 Complexity of/time required by application process 17% 44% 39% 2 Complexity of/time required by reporting process 21% 50% 28% 8 Government changes to contracts/grants midstream 59% 23% 18% 28 Late payments (beyond contract specifications) 67% 33% 38 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 49% reporting limits on general 45% Contracts require matching or sharing costs Grants require matching or sharing costs 70% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 5 4 9 10 14 16 23 23 21 0 10 20 30 40 50 Percent of organizations reporting limits 26 Program overhead General overhead 40 65

Montana Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 439 $474 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 9% 6% 12% 5% 11% 58% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 33% 50% 17% Actions Taken by Nonprofits Montana 28% 26% 1% 7% 15% 12% 11% 14% employees 49% 42% Drew on reserves offices or program sites 30% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 7% 11% 58% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Montana 17% 24% 25% Montana Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies 51% Individual donations Private foundations Corporate donations 48% Investment income 20% 21% 33% 34% 42% 52% 53% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 66

Nebraska Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 10% 76% 14% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 60% 29% 11% 43 Complexity of/time required by application process 38% 37% 25% 42 Complexity of/time required by reporting process 38% 49% 13% 45 Government changes to contracts/grants midstream 72% 22% 6% 46 Late payments (beyond contract specifications) 55% 24% 21% 19 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 34% reporting limits on general 33% Contracts require matching or sharing costs 31% Grants require matching or sharing costs 78% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 6 7 8 11 15 19 18 24 0 10 20 30 40 50 Percent of organizations reporting limits 31 Program overhead General overhead 46 67

Nebraska Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 406 $552 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 9% 2% 7% 14% 17% 50% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 37% 54% 10% Actions Taken by Nonprofits Nebraska 24% 26% 16% 7% 12% 12% 17% 14% employees 39% 42% Drew on reserves offices or program sites 14% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 18% 11% 58% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Nebraska 17% 15% 32% Nebraska Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies 53% Individual donations Private foundations Corporate donations 48% Investment income 17% 32% 34% 27% 35% 45% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 68

Nevada Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 7% 75% 18% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 60% 20% 21% 43 Complexity of/time required by application process 27% 35% 38% 19 Complexity of/time required by reporting process 26% 29% 46% 14 Government changes to contracts/grants midstream 52% 9% 39% 19 Late payments (beyond contract specifications) 56% 15% 29% 21 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 55% reporting limits on general 58% Contracts require matching or sharing costs 39% Grants require matching or sharing costs 68% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 5 8 7 9 17 24 22 22 Program overhead General overhead 41 40 0 10 20 30 40 50 Percent of organizations reporting limits 69

Nevada Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 194 $778 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 10% 12% 4% 7% 6% 61% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 16% 55% 29% Actions Taken by Nonprofits Nevada 30% 26% n/r 7% 9% 12% 6% 14% employees 55% 42% Drew on reserves offices or program sites 34% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 5% 11% 55% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Nevada 10% 17% 28% 48% 61% Nevada Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 28% 35% 37% 45% 49% 49% 56% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 70

New Hampshire Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 86% 14% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 67% 11% 22% 47 Complexity of/time required by application process 38% 39% 23% 42 Complexity of/time required by reporting process 37% 33% 30% 43 Government changes to contracts/grants midstream 67% 18% 15% 38 Late payments (beyond contract specifications) 86% 7% 7% 51 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 44% reporting limits on general 55% Contracts require matching or sharing costs 30% Grants require matching or sharing costs 44% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 7 8 9 12 15 13 13 16 12 Program overhead General overhead 47 48 0 10 20 30 40 50 60 Percent of organizations reporting limits 71

New Hampshire Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 386 $511 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 6% 3% 9% 14% 18% 48% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 52% 24% 24% Actions Taken by Nonprofits New Hampshire 44% 26% 8% 7% 13% 12% 19% 14% employees 45% 42% Drew on reserves offices or program sites 24% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 18% 11% 55% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits New Hampshire $100,000 to $249,999 $250,000 to $999,999 $1 million or more n/r 17% New Hampshire Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies 55% Individual donations Private foundations 45% Corporate donations 48% Investment income 20% 31% 34% 44% 43% 50% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 72

New Jersey Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 2% 78% 20% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 25% 26% 50% 1 Complexity of/time required by application process 19% 32% 49% 5 Complexity of/time required by reporting process 25% 34% 41% 12 Government changes to contracts/grants midstream 55% 18% 27% 22 Late payments (beyond contract specifications) 47% 25% 28% 9 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 55% reporting limits on general 61% Contracts require matching or sharing costs 22% Grants require matching or sharing costs 66% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 4 12 14 18 17 19 20 General overhead 26 23 0 5 10 15 20 25 30 Percent of organizations reporting limits 22 22 73

New Jersey Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,622 $6,728 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations n/r 4% 17% 10% 17% 52% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 34% 30% Actions Taken by Nonprofits New Jersey 34% 26% 6% 7% 9% 12% 10% 14% employees 46% 42% Drew on reserves offices or program sites 10% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 10% 11% 56% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 New Jersey 16% 17% 19% New Jersey Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 35% 37% 38% 39% $1 million or more 48% 65% Corporate donations Investment income 35% 38% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 74

New Mexico Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 5% 76% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 53% 23% 24% 33 Complexity of/time required by application process 30% 37% 33% 22 Complexity of/time required by reporting process 29% 41% 30% 26 Government changes to contracts/grants midstream 69% 12% 19% 44 Late payments (beyond contract specifications) 73% 15% 12% 47 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 45% reporting limits on general 47% Contracts require matching or sharing costs 19% Grants require matching or sharing costs 63% Limits Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 15% + 15 10 General overhead 11 15% 21 5 8 10% 4 7% 1 3% 0% 9 9 13 12 13 28 32 31 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 75

New Mexico Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 485 $711 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 14% 7% 5% 6% 6% 63% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 33% 51% 15% Actions Taken by Nonprofits New Mexico 28% 26% 8% 7% 16% 12% 15% 14% employees 42% Drew on reserves offices or program sites 24% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 9% 11% 54% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more New Mexico 12% 17% Local government agencies State government agencies Federal government agencies 52% Individual donations Private foundations Corporate donations 48% Investment income New Mexico Nonprofits Experiencing Declines in Revenue from 38% 44% 47% 38% 35% 39% 35% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 76

New York Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 6% 70% 24% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 41% 20% 39% 16 Complexity of/time required by application process 22% 42% 11 Complexity of/time required by reporting process 20% 48% 32% 6 Government changes to contracts/grants midstream 46% 28% 25% 8 Late payments (beyond contract specifications) 38% 33% 29% 4 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 50% reporting limits on general 54% Contracts require matching or sharing costs 24% Grants require matching or sharing costs 41% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 4 5 8 9 11 12 16 16 20 22 Program overhead General overhead 38 39 0 10 20 30 40 50 Percent of organizations reporting limits 77

New York Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 4,973 $18,710 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 1% 9% 8% 20% 19% 44% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 27% 55% 18% Actions Taken by Nonprofits New York 27% 26% 6% 7% 10% 12% 13% 14% employees 43% 42% Drew on reserves offices or program sites 11% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 14% 11% 49% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more New York 8% 17% 34% 48% 58% New York Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 44% 45% 33% 32% 38% 30% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 78

North Carolina Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 7% 72% 22% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 48% 17% 35% 24 Complexity of/time required by application process 25% 45% 30% 17 Complexity of/time required by reporting process 26% 47% 26% 14 Government changes to contracts/grants midstream 53% 33% 15% 21 Late payments (beyond contract specifications) 50% 37% 13% 11 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 54% reporting limits on general 59% Contracts require matching or sharing costs 48% Grants require matching or sharing costs 56% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 3 5 7 9 14 14 12 18 22 22 Program overhead General overhead 0 10 20 30 40 50 Percent of organizations reporting limits 37 38 79

North Carolina Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 1,523 $2,987 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 2% 8% 9% 15% 16% 50% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 18% 49% 33% Actions Taken by Nonprofits North Carolina 25% 26% 2% 7% 14% 12% 19% 14% employees 33% 42% Drew on reserves offices or program sites 19% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 9% 11% 65% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits North Carolina $100,000 to n/r $249,999 17% $250,000 to $999,999 $1 million or more 43% 48% 57% North Carolina Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 23% 28% 37% 41% 40% 54% 56% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 80

North Dakota Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 2% 86% 12% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 59% 12% 29% 41 Complexity of/time required by application process 31% 50% 20% 26 Complexity of/time required by reporting process 27% 37% 21 Government changes to contracts/grants midstream 52% 35% 14% 19 Late payments (beyond contract specifications) 59% 37% 5% 25 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 53% reporting limits on general 47% Contracts require matching or sharing costs 45% Grants require matching or sharing costs 60% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** n/r 6 6 13 13 13 15 22 24 0 10 20 30 40 50 60 32 Percent of organizations reporting limits Program overhead General overhead 49 81

North Dakota Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 197 $500 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 0% 2% 3% 14% 11% 69% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 27% 45% 28% Actions Taken by Nonprofits North Dakota 18% 26% 8% 7% 3% 12% 14% 14% employees 33% 42% Drew on reserves offices or program sites 31% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 15% 11% 26% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more North Dakota 10% 17% 33% 48% 57% North Dakota Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 19% 21% 19% 18% 19% 31% 65% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 82

Ohio Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 5% 69% 27% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 38% 28% 35% 8 Complexity of/time required by application process 27% 41% 32% 19 Complexity of/time required by reporting process 31% 32% 37% 31 Government changes to contracts/grants midstream 47% 29% 24% 10 Late payments (beyond contract specifications) 42% 29% 29% 7 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 56% reporting limits on general 52% Contracts require matching or sharing costs 18% Grants require matching or sharing costs 57% Limits 15% + 11 15% 8 10% 4 7% 1 3% 0% Organizations Reporting Overhead Limits, by Limit Amount and Type*** 4 6 7 11 13 15 18 18 17 20 0 10 20 30 40 50 Percent of organizations reporting limits 30 Program overhead General overhead 43 83

Ohio Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 2,334 $7,411 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 4% 1% 13% 12% 16% 53% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 24% 48% 28% Actions Taken by Nonprofits Ohio 40% 26% 10% 7% 18% 12% 12% 14% employees 53% 42% Drew on reserves offices or program sites 19% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits people served 14% 11% 59% 53% programs or services Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 Ohio 13% 17% 38% Ohio Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 28% 44% 46% 40% 64% $1 million or more 49% 48% Corporate donations Investment income 35% 27% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 84

Oklahoma Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 3% 88% 10% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 49% 34% 18% 25 Complexity of/time required by application process 40% 45% 15% 45 Complexity of/time required by reporting process 28% 66% 6% 24 Government changes to contracts/grants midstream 74% 23% 3% 48 Late payments (beyond contract specifications) 63% 34% 3% 29 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 39% reporting limits on general 37% Contracts require matching or sharing costs 31% Grants require matching or sharing costs 61% Limits Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 15% + 21 6 General overhead 11 15% 27 43 8 10% 4 7% 1 3% 0% 6 12 12 14 13 12 14 19 0 10 20 30 40 50 Percent of organizations reporting limits 85

Oklahoma Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 587 $660 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 13% 5% 3% 6% 12% 60% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 37% 49% 14% Actions Taken by Nonprofits Oklahoma 16% 26% 2% 7% 6% 12% 16% 14% employees 31% 42% Drew on reserves offices or program sites 6% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 7% 11% 42% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 Oklahoma 9% 17% 49% Oklahoma Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations 20% 20% 20% 27% $1 million or more 42% 48% Corporate donations Investment income 23% 34% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 86

Oregon Nonprofit-Government Contracts and Grants* 2012 Government Experience Compared to Previous Year Better Same Worse 15% 67% 19% Problems with Government Contracts and Grants NOT A SMALL BIG STATE RANK** Payments do not cover full cost of contracted services 42% 16% 43% 17 Complexity of/time required by application process 21% 43% 10 Complexity of/time required by reporting process 19% 37% 44% 4 Government changes to contracts/grants midstream 51% 31% 18% 18 Late payments (beyond contract specifications) 63% 21% 15% 29 Nonprofits Reporting Limitations on Full Costs in Government Contracts and Grants reporting limits on program 40% reporting limits on general 48% Contracts require matching or sharing costs 26% Grants require matching or sharing costs 51% Limits Organizations Reporting Overhead Limits, by Limit Amount and Type*** Program overhead 15% + 7 10 General overhead 11 15% 21 12 8 10% 4 7% 1 3% 0% 3 8 9 18 26 28 28 30 0 5 10 15 20 25 30 35 Percent of organizations reporting limits 87

Oregon Overview of Nonprofit Contractors and Grantees Nonprofits with government contracts and grants Million dollars in contracts and grants 806 $1,245 Arts, culture, and humanities Education Environment and animals Health Human services Other Types of Organizations 12% 6% 9% 9% 4% 60% Average number of Government Agencies Nonprofits Worked with in 2012 1 agency 2 to 4 agencies 5 or more agencies 32% 50% 18% Actions Taken by Nonprofits Oregon 29% 26% 5% 7% 11% 12% 16% 14% employees 43% 42% Drew on reserves offices or program sites 34% 22% Borrowed funds or increased lines of credit Reduced health, retirement, or other staff benefits 6% 11% 55% 53% programs or services people served Froze or reduced employee salaries Financial Status of Nonprofits with Government Contracts and Grants Expenditure Size of Nonprofits with Deficits $100,000 to $249,999 $250,000 to $999,999 $1 million or more Oregon 16% 17% 42% 42% 48% Oregon Nonprofits Experiencing Declines in Revenue from Local government agencies State government agencies Federal government agencies Individual donations Private foundations Corporate donations Investment income 33% 30% 34% 44% 43% 48% 48% Source: Urban Institute, Survey of Nonprofit-Government Contracts and Grants (2013). * Data reported are based on a national survey of 501(c)(3) public charities with expenses of $100,000 or more. Hospitals and higher education as well as nonprofits not likely to have government contracts and grants were excluded from the sample. Analysis is limited to nonprofits reporting government contracts or grants. See Methodology section for more details on response rate and data weights. **State rankings: 1=highest percentage of nonprofits reporting problem; 51=lowest percentage of nonprofits reporting problem. See appendix for more details. ***Organizational overhead or administrative expenses include costs associated with the organization as a whole that cannot be attributed to a program (such as utilities, accounting staff, or a receptionist). Program overhead or administrative expenses refer to administrative expenses directly related to programs and services (that is, program administration, such as computer use, copying, rent, and telephone use). n/r= Data not reported or too few respondents answered the question. Note: Percentages may not sum to 100 because of rounding. The full report on the national survey is available at www.urban.org/publications/412962.html. 88