5 Surprising Truths About How Nonprofits Are Actually Funded
5 Surprising Truths About How Nonprofits Are Actually Funded Have you ever looked up a nonprofit's tax form, seen a revenue figure in the millions, and wondered where all that money really goes? Maybe you’ve heard someone claim a local charity is "keeping 97% of donations" and felt a sense of skepticism or confusion. It’s a common reaction, but it’s often based on a fundamental misunderstanding of how modern community healthcare services are funded. The numbers on a tax document rarely tell the whole story. What looks like a massive pile of public donations is often something entirely different: a complex, highly regulated, and performance-based system of contracts and grants. This article will reveal the surprising reality behind those figures by breaking down five counter-intuitive truths about nonprofit funding. We’ll clarify what’s really happening with Medicaid contracts, healthcare grants, and community services funding to demystify the system designed to support ou...