Reihan Salam quotes John DiIulio, Jr.,

About three-quarters of non-profit organizations, including most faith-based ones, spend under a half a million dollars a year and receive little or no government grant or contract money. But the quarter of the sector’s organizations that boast its biggest annual budgets are highly dependent on direct government funding, meaning that one-third of all non-profit dollars are from government, paid through grants or contracts. For instance, in 2009, Catholic Charities USA alone spent $4.2 billion — and about two-thirds of that money came from government grants and contracts.

[UPDATE: Tim Worstall forwards the link a UK web site, which he hints is an idea that might also be of use in the former colonies.]