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September 24, 2021

Where Does $100 to Planned Parenthood Go?

by Anne Paddock

Planned Parenthood Federation of America, Inc. is generally referred to as “Planned Parenthood” and known to provide reproductive healthcare in the US and globally.  Although Planned Parenthood is often in the news over women’s reproductive rights and specifically, abortion rights, the organization provides general healthcare, birth control, patient education, pregnancy testing, STD testing, treatment, and vaccines, women’s services, LGBT services, and men’s services.

In general terms, Planned Parenthood raises about $300 million annually (with no funding from the government) and uses those funds to assist the 600 healthcare centers operated throughout the USA and to manage the overall organization.  Planned Parenthood had $325 million in net assets in 2020.  So, if you’re wondering how $100 is spent at Planned Parenthood, the short answer is that about half is awarded in grants to other healthcare centers and half is spent on organization expenses. To obtain a more specific answer, read on.

In 2020, Planned Parenthood reported total revenue of $294 million (compared to $286 million the prior year), most of which came from contributions, gifts, and grants. Expenses totaled $337 million (not including $4 million in depreciation) and can be categorized as follows:

  • $166 million (56% of revenue):  Grants
  • $ 78 million (27% of revenue):  Compensation
  • $ 27 million (9% of revenue):  Fees for Services
  • $ 26 million (9% of revenue):  Office-related Expenses
  • $ 24 million (8% of revenue):  Fundraising Fees – Professional and Other
  • $  8 million (3% of revenue):  Travel and Conferences
  • $  6 million (2% of revenue):  Advertising and Promotion
  • $  2 million (1% of revenue):  Other Expenses

As illustrated above, grants is the largest expense and includes 99 grants greater than $5,000 – primarily to Planned Parenthood health centers to support programs and reproductive health.

In 2020, Planned Parenthood spent about $43 million more than they raised or about $115 for every $100 raised. The organization was able to do this because they had $478 million in net assets, which was reduced to $325 million at year-end.

Using the above information, every $100 in revenue was spent as follows:

 $100:  Revenue

-$ 56:  Grants

 $ 44:  Revenue Remaining

-$ 27:  Compensation

-$  9:  Fees for Services

-$  9:  Office-Related Expenses

-$  8:  Fundraising Fees – Professional and Other

-$  3:  Travel and Conferences

-$  2:  Advertising and Promotion

-$  1:  Other Expenses

-$ 59: Subtotal Organization Expenses

-$ 15:  Excess Expenses over Revenue

As illustrated above, Planned Parenthood spent $115 for every $100 in revenue raised in 2020 (and was able to do so because they had nearly $400 million in net assets).

Planned Parenthood engages heavily in fundraising as evidenced on a reliance on 10 outside organizations for consulting and telemarketing that brought in $87 million ($101 million less $14 million in fees).  See the Form 990, Schedule G, Part I for more detailed information.

To read the IRS Form 990 (2019 for the year ending June 30, 2020), click here.

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