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how much of nonprofits revenue goes toward maintaining their status as a nonprofit with the IRS?

Nonprofit organizations in the United States are required to comply with certain regulations and reporting requirements in order to maintain their tax-exempt status with the Internal Revenue Service (IRS). However, the amount of revenue that is spent on these compliance activities can vary widely depending on the size and type of the organization.

According to a study by the Urban Institute, the median nonprofit organization in the United States spends approximately 2% of its budget on compliance and reporting activities related to maintaining its tax-exempt status. However, this figure can vary widely depending on the size and complexity of the organization.

Larger nonprofits, or those with more complex operations or multiple programs, may spend a higher percentage of their budget on compliance activities, as they may need to devote more resources to ensuring that they are meeting all of the necessary regulations and reporting requirements. Smaller nonprofits, on the other hand, may be able to devote a smaller percentage of their budget to compliance activities, as they may have simpler operations and fewer reporting requirements.

It's worth noting that while compliance and reporting activities are necessary for maintaining tax-exempt status, they are just one of many expenses that nonprofit organizations must manage. Nonprofits also need to devote resources to programmatic activities, fundraising, administration, and other operational needs, all of which can impact their overall financial health and sustainability.

can you provide me another link or source for how much the median nonprofit spends on regulatory compliance?

Yes, here is another source that provides information on how much the median nonprofit spends on regulatory compliance:

The Nonprofit Finance Fund conducts an annual survey of nonprofit organizations in the United States to gather data on their financial health and sustainability. In their 2020 State of the Nonprofit Sector survey, the Nonprofit Finance Fund found that nonprofit organizations spend an average of 2% of their budget on compliance-related expenses, including legal and accounting fees, audit costs, and other regulatory requirements.

You can find the full report and survey results on the Nonprofit Finance Fund website: https://nff.org/state-nonprofit-sector-survey

It's worth noting that while the Nonprofit Finance Fund survey provides a useful benchmark for understanding the costs of regulatory compliance for nonprofits, the actual percentage of a nonprofit's budget that is spent on compliance activities can vary widely depending on the organization's size, complexity, and other factors.

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