Disability Foundations, Charities and Nonprofit Organizations
Author: Disabled World (DW)
Updated/Revised Date: 2 Nov 2026
Table of Contents:
Synopsis - Definition - About This Section - FAQs - Publications - Subtopics
Synopsis
What disability foundations, charities, NGOs and nonprofits are, how they are set up, funded and regulated, with current U.S. giving and nonprofit facts.
At a Glance
- 1 - Americans gave an estimated $617.20 billion to charity in 2025.
- 2 - Private foundations must generally pay out at least 5 percent of their investment assets each year.
- 3 - Nonprofits employed about 12.8 million people, or 9.9 percent of U.S. private-sector workers, in 2022.
- 4 - The Gates Foundation Trust, which holds the endowment of the largest U.S. private foundation, reported about $77.6 billion in assets at the end of 2024.
Topic Definition
- Disability Foundations
A disability foundation is a nonprofit legal entity established to fund, deliver, or advocate for services that benefit people with disabilities. Some foundations act as grantmakers, distributing money to hospitals, research programs, advocacy groups, and community organizations, while others are operating foundations that run their own programs directly, such as equipment loan closets, employment training, or accessible housing projects. Funding usually comes from public donations, membership dues, government grants, bequests, or an endowment left by an individual or family, and in the United States these bodies register under specific sections of the tax code that determine how they raise and spend money. The label covers a wide range of scale, from small volunteer-run community groups working in a single town to international non-governmental organizations operating across dozens of countries, but the common thread is that no surplus is paid out to owners or shareholders.
Overview
What Is a Foundation?
A foundation is a nonprofit legal entity that holds money or other assets and uses them for a charitable purpose. A disability foundation does this for people with disabilities, either by giving grants to other organizations and individuals or by funding and running its own programs, such as research, equipment loans, employment training or accessible housing.
In the United States, most foundations and charities are tax-exempt under section 501(c)(3) of the Internal Revenue Code. The tax code divides them into public charities, which raise money from the public, and private foundations, which are usually funded by one individual, family or company. This page explains the main types of nonprofit organizations, how they are funded and regulated, and the latest figures on American giving.
Private Foundations
Private foundations are set up by an individual, a family or a business, usually with a single large gift or endowment. Unlike public charities, they do not generally raise money from the public. A private foundation is defined in section 509(a) of the Internal Revenue Code, must file an annual Form 990-PF with the Internal Revenue Service (IRS), and must generally pay out at least 5 percent of the value of its investment assets each year for charitable purposes.
The largest private foundation in the United States is the Gates Foundation, formerly the Bill and Melinda Gates Foundation. The Gates Foundation Trust reported about $77.6 billion in assets at the end of 2024, and the foundation has announced that it plans to spend its endowment and close by 2045 [Gates Foundation Trust, 2025]. Most private foundations are far smaller, and the IRS recognizes roughly 120,000 of them [Internal Revenue Service, 2025].
Public Charities
Public charities receive much of their support from the general public, government grants or fees for services. Hospitals, schools, religious congregations, disability service providers and advocacy groups are common examples. Gifts to a 501(c)(3) public charity are generally tax deductible for donors who itemize.
Americans gave an estimated $617.20 billion to charity in 2025, passing $600 billion for the first time and up from $592.50 billion in 2024. Religious organizations received the largest share, about 23 percent or $151.58 billion, and giving by foundations reached $117.15 billion, about 19 percent of the total [Giving USA Foundation, 2026].
Non-Governmental Organizations (NGOs)
Non-governmental organization (NGO) is a widely used term for a legally constituted organization created by private persons or groups with no participation or representation of any government. Even when an NGO is funded partly or wholly by governments, it keeps its non-governmental status by excluding government representatives from membership. NGO is a term in general use rather than a legal definition, and similar groups are also described as the independent sector, the voluntary sector, civil society, grassroots organizations, private voluntary organizations, self-help organizations and non-state actors. The term is most often used for groups that work internationally, such as charities that support people with disabilities in low- and middle-income countries.
Nonprofit Organizations
A nonprofit organization (NPO), also called a not-for-profit, does not distribute its surplus funds to owners or shareholders but uses them to pursue its goals. Charities, trade unions, professional associations and public arts organizations are examples. Nonprofits can pay reasonable salaries, and many employ large professional staffs.
U.S. Nonprofit Facts and Statistics
- The IRS recognizes nearly 1.9 million organizations as tax-exempt under section 501(c), including more than 1.5 million charitable and religious organizations under section 501(c)(3) [Internal Revenue Service, 2025].
- Nonprofits accounted for about 5.2 percent of U.S. gross domestic product in 2023, contributing about $1.4 trillion to the economy [Independent Sector, 2024].
- Nonprofits employed about 12.8 million people, or 9.9 percent of private-sector workers, in 2022, according to the U.S. Bureau of Labor Statistics [Federal Reserve Bank of Richmond, 2025].
- Individuals give the largest share of U.S. charitable donations, followed by foundations, bequests and corporations [Giving USA Foundation, 2026].
Community Organizations
Community organizations, sometimes called community-based organizations, are civil society nonprofits that work within a single local community. Some are formally incorporated, with a written constitution and a board of directors, while others are small, informal groups run by volunteers.
Frequently Asked Questions
How do I check whether a disability foundation is legitimate?
Look up the organization's registration and annual filings with the national charity regulator, which in the United States means the IRS tax-exempt organization search, and compare the details against the group's own published accounts. Legitimate foundations will readily supply a registration number, a board list, and audited financial statements on request.
What is the difference between a foundation and a charity?
A charity is defined by its purpose, meaning it exists to serve a recognized public benefit, while a foundation describes a legal structure that usually holds assets and makes grants. Many foundations are also charities, but a foundation can exist purely to fund other bodies rather than to deliver services itself.
Can a disability foundation pay salaries to its staff?
Yes, nonprofit status restricts the distribution of surplus to owners or shareholders, not the payment of reasonable wages for work performed. Foundations commonly employ program managers, fundraisers, and administrators, and those salaries must be disclosed in the organization's annual return.
What percentage of a donation should reach the intended program?
Watchdog groups generally expect at least 65% to 75% of total spending to go toward program activities, with the remainder covering administration and fundraising. Ratios vary by mission and age of the organization, so a single year of higher overhead is not automatically a warning sign.
How do I apply for a grant from a disability foundation?
Most foundations publish eligibility criteria, funding cycles, and application forms on their websites, and many require a letter of inquiry before a full proposal. Individuals seeking personal assistance should look for foundations that specifically fund direct aid, since a large share of grantmakers only award money to registered organizations.
Are donations to disability foundations tax deductible?
In the United States, gifts to organizations recognized under section 501(c)(3) are generally deductible if you itemize deductions, and the organization must provide a written receipt for gifts of $250 or more. Rules differ in other countries, so confirm the local status of the recipient before claiming any deduction.
What is the difference between an NGO and a nonprofit organization?
Nonprofit is a financial and legal description used mainly in domestic tax law, while NGO is an informal term that emphasizes independence from government and is most often applied to groups working internationally. An organization can be both at once, since the terms describe different aspects of the same body.
How do I start a disability nonprofit?
You usually choose a name and mission, form a board, incorporate under state law, and then apply to the IRS for tax-exempt status. Many founders get help from a nonprofit attorney or a state association of nonprofits.
References
- Federal Reserve Bank of Richmond. (2025). How big is the nonprofit sector?
- Gates Foundation Trust. (2025). Form 990-PF: Return of private foundation, 2024.
- Giving USA Foundation. (2026). Giving USA 2026: The annual report on philanthropy for the year 2025.
- Independent Sector. (2024). Health of the U.S. nonprofit sector: Quarterly review.
- Internal Revenue Service. (2025). IRS data book, 2024.
Curated and edited by Ian C. Langtree, Founder and Editor-in-Chief, Disabled World. This section is maintained by the Disabled World editorial team. Last updated: