In a previous post, I started looking at how organizations that received at least 20 percent of their revenue from government grants in 2003 were holding up in 2013. I noted that although government grants had increased at roughly the same rate as inflation over the ten years (around 27%), about half of the organizations had increased revenue at greater than the inflation rate. In this post, I will detail my attempts to understand why some organizations did better than others.
The first factor I looked at was the broad type of organization. The table below shows how these organizations did as a whole:
International organizations led the way with an increase of 98 percent (although it should be noted that the twenty biggest organizations in that group were responsible for most of that growth). All types of organizations experienced growth that was well ahead of inflation.
All categories had a similar percentage of organizations whose revenue growth exceeded inflation.
Arts, culture and humanities organizations (ACH) did lag behind, despite a higher rate of growth than other sectors in government grants over the period (225 percent vs. 168 percent). It appears that this sector simply had more big winners but also more big losers than the other sectors. Overall, 50 percent of the organizations experienced at least some growth in government grants from 2003 to 2013, but only 23 percent of the ACH organizations did. I could not find any discernible pattern in terms of size or type of ACH organization regarding who was a loser and who was a winner.
I will be continuing to poke around in this data. If I find anything else interesting, I will post it here.
Chuck McLean is responsible for conducting research for GuideStar and customers interested in nonprofit sector data. He also works to identify new data sources and ways to present data effectively to GuideStar users. Chuck produces the annual GuideStar Compensation Report, which analyzes the salary and benefits of thousands of nonprofits throughout the country. He has 15 years of experience as a teacher and researcher in various institutions of higher education. Chuck serves on the advisory committee of the National Center for Charitable Statistics and is a member of the Panel of Nonprofit Sector Representatives for the Commission on Accountability and Policy for Religious Organizations. A graduate of Christopher Newport University, Chuck also received an M.S. degree in mathematics from the College of William and Mary.