Disability Foundations and Nonprofit Organizations Guide

Author: Disabled World (DW)
Updated/Revised Date: 25 Jul 2026

Table of Contents:
Synopsis - Definition - About This Section - FAQs - Publications - Subtopics

Synopsis

Disability foundations, charities, NGOs, and nonprofit organizations explained, including how each type is structured, funded, and regulated worldwide.

At a Glance

• 1 - Nonprofits paid 9.2% of all U.S. wages and salaries in 2010.
• 2 - Religious organizations received 31% of all U.S. charitable donations in 2013, totaling $105.53 billion.
• 3 - U.S. records list 1,457,064 tax-exempt organizations, including 992,543 public charities and 98,632 private foundations.
• 4 - The Bill and Melinda Gates Foundation holds over $38 billion in assets, making it the largest private foundation in the United States.

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?

The term "foundation," in general, is used to describe a distinct legal entity. A disability foundation is a legal categorization of nonprofit organizations. Disability foundations may also and often have charitable purposes. This type of nonprofit organization may either donate funds and support to other organizations, or provide the sole source of funding for their own charitable activities.

A foundation (also a charitable foundation) is a legal categorization of nonprofit organizations that will either donate funds and support to other organizations, or provide the source of funding for its own charitable purposes. This type of non-profit organization differs from a private foundation, which is typically endowed by an individual or family.

Private Foundations

Private foundations are legal entities set up by an individual, a family, or a group of individuals, for a purpose such as philanthropy.

The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets. However, most private foundations are much smaller and approximately two-thirds of more than 84,000 filing with the U.S. IRS in 2008 have less than $1 million in assets and 93% have less than $10 million. In aggregate, private foundations in the U.S. control over $628 billion in assets and made more than $44 billion in charitable contributions in 2007.

Unlike a charitable foundation, a private foundation does not generally solicit funds from the public. A private foundation, in the United States, is a charitable organization described in the Internal Revenue Code by section 509.

Charities

Few people realize how large charities have become, how many vital services they provide, and how much funding flows through them each year. Without charities and non-profits, America would simply not be able to operate. Their operations are so big that during 2013, total giving was more than $335 billion. Historically, Religious groups have received the largest share of charitable donations. While this was still true in 2013, the percentage dropped by 2% from 2012 making this the fifth year in a row it was down or flat. Even with the 0.2% decrease in donations this year, 31% of all donations ($105.53 billion) went to Religious organizations. Much of these contributions can be attributed to people giving to their local place of worship.

Non-Governmental Organization

Non-governmental organization (NGO) is a term that is becoming widely accepted as referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government.

In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status and excludes government representatives from membership in the organization.

Unlike the term intergovernmental organization, "non-governmental organization" is a term in general use but is not a legal definition. Apart from "NGO", often alternative terms are used for example: independent sector, volunteer sector, civil society, grassroots organizations, transnational social movement organizations, private voluntary organizations, self-help organizations and non-state actors (NSA's).

Non-profit Organizations

A nonprofit organization (abbreviated NPO, also not-for-profit) is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Examples of NPOs include charities (i.e., charitable organizations), trade unions, and public arts organizations. Most governments and government agencies meet this definition, but in most countries they are considered a separate type of organization and not counted as NPOs.

U.S. Non profit Organization Statistics:

• Nonprofit Share of GDP was 5.3% in 2014. (Source: US Bureau of Economic Analysis)
• Individuals gave $228.93 billion in 2012, an increase of 3.9 percent from 2011. (Source: Giving USA, 2013)
• There are an estimated 323,548 congregations in the United States in February 2015. (Source: American Church Lists)
• Foundations gave $50.9 billion in 2012, up just less than one percent from 2011. (Source: The Foundation Center, 2013)
• In 2010, nonprofits accounted for 9.2% of all wages and salaries paid in the United States. (Source: The Nonprofit Almanac, 2012)
• 1,457,064 tax-exempt organizations, including 992,543 public charities - 98,632 private foundations - 365,889 other types of nonprofit organizations, including chambers of commerce, fraternal organizations and civic leagues. (Source: NCCS Business Master File 9/2014)
• In 2012, public charities reported over $1.65 trillion in total revenues and $1.57 trillion in total expenses. Of the revenue: 21% came from contributions, gifts, and government grants. 73% came from program service revenues, which include government fees and contracts. 6% came from "other" sources including dues, rental income, special event income, and gains or losses from goods sold.

Community Organizations

Community organizations (sometimes known as community-based organizations) are civil society non-profits that operate within a single local community. They are essentially a subset of the wider group of nonprofits. Like other nonprofits, they are often run on a voluntary basis and are self funding.

Within community organizations, there are many variations in terms of size and organizational structure. Some are formally incorporated, with a written constitution and a board of directors (also known as a committee), while others are much smaller and are more informal.

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.

Curated and edited by Ian C. Langtree, Founder & Editor-in-Chief, Disabled World. This section is maintained by the Disabled World editorial team.

Last updated: 25 Jul 2026