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Taxpayer Philanthropy: Tax cash to nonprofits more than doubled since 2016

The analysis found 110,000 nonprofits received taxpayer funding in 2020, while critics said weak oversight lets government money cover executive pay.

  • Federal, state, and local government grants to nonprofits rose from $149.5 billion in 2016 to a peak of $319 billion, though about 10,000 fewer organizations received funding over the period.
  • Large funding gains coincided with the COVID-19 pandemic and subsequent economic recovery. The Center Square used Artificial Intelligence to analyze 3.4 million lines of digitalized nonprofit tax returns from the IRS.
  • Analysis found more than 11,000 nonprofits have at least one executive earning $300,000 annually or more. Government money covers 90% of top employee compensation in hundreds of organizations, including dozens in Minnesota.
  • David Williams of the Taxpayers Protection Alliance labeled the spending "phony philanthropy," arguing that government officials prioritize credit over accountability. Williams said "taxpayers are funding salaries, not programs."
  • Government funding for nonprofits dropped to nearly $222 billion in 2023, while the National Council declined to comment, citing that the team would be "tied up throughout the next week or two.
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Taxpayer Philanthropy: Tax cash to nonprofits more than doubled since 2016

(The Center Square) – In the past decade, government grants to nonprofits and the number of nonprofits that receive tax money has doubled, raising questions about whether public money is being wasted, an investigation by The Center Square found.

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Watauga Democrat broke the news in Calhoun, United States on Monday, August 10, 2026.
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