Of the 1.75 million tax-exempt organizations registered with the Internal Revenue Service in April 2020, about one-third are human service nonprofits, including about 267,000 charities with about $371 billion in total combined revenues. In 2019, human service public charities (excluding private foundations) received an estimated $56 billion in charitable contributions. This represents 12% of all charitable contributions, and is about 21% of the combined revenues reported by the almost 270,000 registered human service public charities reporting financial information. While government funding is a major driving force for human service charities, philanthropic funding clearly is important as well. Securing such funding requires solid understanding of the fundraising process and dedicated time and effort. However, competition for donations (and fundraising expertise) appears to be growing across the board, with donations from individuals, United Way, and corporate contributions most at risk for human service charities. These trends in philanthropic funding reflect growing income inequality, which also impacts the scope and types of human services needed and is complicated even further by persistent racial disparities.
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Philanthropic Funding for Human Services
Kirsten A. Grønbjerg
Article
Social Services
Philip R. Popple
Formal or institutional social services began in the United States in the late 19th century as a response to problems that were rapidly increasing as a result of modernization. These services were almost entirely private until the Great Depression in the 1930s when the government became involved via provisions of the Social Security Act. Services expanded greatly, beginning in the 1960s when the federal government developed a system wherein services were supported by public funds but provided through contracts with private agencies. This trend has continued and expanded, resulting in a uniquely American system wherein private agencies serve as vehicles for government social service policy.