The Accuracy of the Core Files for Studying Nonprofit Location

Abstract

Studies show that the distribution of nonprofits varies considerably across communities. Affluent communities tend to have ample nonprofit resources and highly diverse nonprofit landscapes, whereas low-income communities often lack the variety of nonprofits found within wealthier areas. As a result of these differences, scholars have suggested that geographic unevenness in the presence of nonprofits may lead to extreme inequities and inefficiencies in how nonprofit services are accessed and administered. Although these concerns certainly warrant serious attention, several limitations have been acknowledged with the National Center for Charitable Statistic’s (NCCS) Core Financial Files—which have been the primary data source used to generate findings on geographic dimensions of the nonprofit sector in the United States. This research note examines the accuracy of the information in the Core Files after adjustments for each of these limitations.