State nonprofits bring in hundreds of billions of dollars in revenue each year

Tax return data shows hundreds of billions of dollars flowing through U.S. nonprofits in 2024 as major fraud cases, including in Minnesota, drive renewed focus on how taxpayer-supported funds are audited.

The numbers are coming ProPublica’s Nonprofit Investigator and was independently reviewed by Fox News, which verified state-by-state revenue totals.

According to the data, 213,720 nonprofits in California collectively reported $593.4 billion in revenue; this is the highest total of any state.

For nonprofit organizations, income refers to the total income reported on tax returns (not profits or money that individuals pocket) and can include government grants and reimbursements, donations, service fees, investment income, and contracts for public services.

COMER SAYS THE FRAUD PROBLEM IN MINNESOTA WILL SPREAD TO OTHER STATES AFTER ASSEMBLY INSPECTIONS

California was followed by New York, where 132,097 nonprofits reported total revenue of $445.8 billion. 85,346 nonprofits in Pennsylvania reported $247.3 billion, while 157,840 nonprofits in Texas reported $219.6 billion.

Other top states include Washington, where 44,332 nonprofits reported $139.5 billion in revenue; New Jersey, where 56,332 nonprofits reported $113 billion; and Minnesota, where 41,267 nonprofits reported $124.2 billion; This makes the state among the highest income earners in the country despite its smaller population.

The figures were widely disseminated on the Internet social media on Monday after an X user highlighted the totals using the term “NGOs.” The label “NGO” is most often applied to international organizations, but is sometimes used online to describe local nonprofit groups that are the focus of the ProPublica database.

JASON CHAFFETZ: DEMOCRATS HAVE TURNED OUR TREASURY INTO A ‘GAMBLING BANK FOR SCAMMERS’

Nonprofit income figures are based on tax returns and include grants, donations and fees. (Luke Sharrett/Bloomberg via Getty Images)

While nonprofits’ revenues are not an indication of wrongdoing, the heavy reliance on taxpayer-supported federal and state programs has led to scrutiny as investigators have uncovered fraud in numerous publicly funded ventures.

This review comes after the Department of Justice (DOJ) recently announced it would send additional federal prosecutors to Minnesota to help prevent large-scale fraud related to taxpayer-funded programs, following a series of high-profile cases tied to nonprofits and social service spending.

“The Department of Justice is sending a team of prosecutors to Minnesota to strengthen our U.S. Attorney’s Office and put the perpetrators of this widespread fraud behind bars,” Attorney General Pam Bondi told Fox News on Wednesday, saying there would be “severe consequences” in Minnesota. he said.

COMER Says WALZ ‘Retaliated’ Against Whistleblowers Who Warned About Fraud in Minnesota FOR YEARS

Attorney General Pam Bondi said the Justice Department is ready to deploy prosecutors across the country to fight fraud. (Mark Schiefelbein/AP)

He also said his department “is prepared to deploy to other states where similar fraud schemes are ripping off American taxpayers.”

Bondi’s remarks come as the Justice Department continues a sweeping welfare fraud investigation launched under former Attorney General Merrick Garland.

In 2022, Garland announced the first wave of indictments in a $250 million scheme involving Minnesota-based nonprofit Feeding Our Future, which authorities accused of exploiting taxpayer-funded child nutrition programs in what authorities described at the time as the largest pandemic-related fraud ever uncovered.

‘TIPE OF THE ICEBERG’: SENATE REPUBLICANS ARE GOVERNMENT BANKING OVER MINNESOTA FRAUD SCANDAL

The Feeding Our Future nonprofit was at the center of a sweeping federal fraud investigation in Minnesota. (Shari L. Gross/Star Tribune via Getty Images)

Under Bondi, the Justice Department continued to pursue Feeding Our Future-related cases as well as related investigations involving allegations of juror bribery and health care fraud. Bondi said the scope of the misconduct was broader than previously understood and warned that additional criminal charges were expected, backed by the deployment of more federal prosecutors to Minnesota.

To date, the department has charged 98 people and obtained 64 convictions in fraud-related cases in Minnesota. The majority of the defendants are of Somali origin.

Health and Human Services said this month it was freezing billions of dollars in federal funding for child care programs and other social services in five Democratic-led states, including Minnesota, while investigating the use of taxpayer dollars.

MINNESOTA AG SLAMS HIS HOUSE HEARING ON HIS STATE’S FORGERY SCANDAL: ‘A LOT OF BULLS — FROM REPUBLICANS’

A viral video posted by YouTube creator Nick Shirley in December sparked interest in the scam in Minnesota. In the video, Shirley is seen visiting Somali-run nurseries and finding them closed. The videos have been viewed millions of times on social media.

Some nurseries have since disputed the suggestions in Shirley’s video and said they never committed fraud.

CLICK TO DOWNLOAD FOX NEWS APPLICATION

ProPublica’s data reflects reported tax returns and does not allege any inaccuracies.

Fox News Digital’s Ashley Oliver contributed to this report.